PUC textbooks to resellers exempt from GST, job work printing rates vary from 5% to 18% total

AAR Karnataka ruled on GST classification and rates for printing activities. PUC textbooks printed and supplied to resellers are exempt from CGST and SGST under Notification 2/2017. Job work printing services attract varying rates: 2.5% CGST + 2.5% SGST for books/brochures, 6% + 6% for calendars, and 9% + 9% for binding-only services. Printing and supply of textbooks and workbooks to state government for school distribution attracts 6% CGST + 6% SGST. Magazine printing for government departments also attracts 6% CGST + 6% SGST rates.

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Issues Involved:
1. Exemption of printed textbooks for PUC Board from CGST and SGST.
2. Applicable rate of CGST and SGST on printing and binding of brochures, books, calendars, pamphlets on a job work basis.
3. Applicable rate of CGST and SGST on binding of diary, catalogues, and books on a job work basis.
4. Applicable rate of CGST and SGST on printing and supply of textbooks and workbooks to the State Government.
5. Exemption of printing and supply of periodicals and magazines from GST.

Issue-wise Detailed Analysis:

1. Exemption of Printed Textbooks for PUC Board:
The applicant, engaged in printing and supplying textbooks for the PUC Board, contended that this activity falls under Notification 2/2017-Central Tax (Rate) under entry No. 119, which exempts "Printed Books, including Braille Books" from CGST and SGST. The Authority confirmed that the printed textbooks supplied to resellers are indeed covered under this exemption.

2. Applicable Rate on Printing and Binding of Brochures, Books, Calendars, Pamphlets:
The applicant undertakes printing and binding on a job work basis where the content and paper are supplied by the recipient. The ink, plates, machines, and manpower belong to the applicant. According to Notification 11/2017-Central Tax (Rate) and Circular no. 11/11/2017-GST, such activities are considered supply of services. The printed materials, excluding calendars, fall under HSN 4901 and attract 2.5% CGST and 2.5% SGST. Calendars fall under HSN 4910 and attract 6% CGST and 6% SGST.

3. Applicable Rate on Binding of Diary, Catalogues, and Books:
The applicant performs binding on a job work basis with materials provided by customers, including government departments. This activity does not involve printing and is classified under clause (iv) of entry no. 26 of Notification 11/2017-Central Tax (Rate), attracting 9% CGST and 9% SGST.

4. Applicable Rate on Printing and Supply of Textbooks and Workbooks to State Government:
The applicant prints textbooks and workbooks using content supplied by the Government School Board/PUC Board, with all physical inputs belonging to the applicant. This activity is considered a supply of service under clause (i) of entry no. 27 of Notification 11/2017-Central Tax (Rate), attracting 6% CGST and 6% SGST.

5. Exemption of Printing and Supply of Periodicals and Magazines:
The applicant prints monthly and bi-monthly magazines for government departments, with content supplied periodically and no advertisements included. This activity falls under clause (i) of entry no. 27 of Notification 11/2017-Central Tax (Rate) and attracts 6% CGST and 6% SGST.

Ruling:
1. Printed textbooks classifiable under HSN Code 4901 supplied to resellers are exempt from CGST and SGST.
2. Printing and binding of brochures, books, and pamphlets on a job work basis attract 2.5% CGST and 2.5% SGST, while calendars attract 6% CGST and 6% SGST.
3. Binding of diaries, catalogues, and books on a job work basis attracts 9% CGST and 9% SGST.
4. Printing and supply of textbooks and workbooks to the State Government attract 6% CGST and 6% SGST.
5. Printing and supply of periodicals and magazines to government departments attract 6% CGST and 6% SGST.

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