Tax exemption for selling religious books to Madrasas clarified under GST laws.

The case addressed the taxability of selling religious books under GST laws. The Authority ruled that the supply of printed religious books to Madrasas is exempt from tax under specific entries of the CGST Act, KGST Act, and IGST Act. The printed books were classified under HSN Code 4901 10 10 and deemed exempt from taxation as per relevant notifications. The ruling clarified the tax treatment for selling religious books and the applicable exemptions based on the HSN Code and relevant legislation.

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Issues:
- Whether selling of religious books attracts GSTRs.
- If taxable, what would be the rate of GST and HSN CodeRs.
- If exempted, the category of exempted goods and HSN CodeRs.

Analysis:
1. Issue 1: Taxability of Selling Religious Books
The applicant sought an advance ruling on whether selling religious books attracts GST. The applicant, engaged in printing and selling religious books for Islamic educational institutions, clarified that they supply books to Madarasas based on orders received, with content provided by religious heads. The Authority found that the supply of books to Madarasas for consideration constitutes a business supply under section 7(1) of the CGST Act, 2017. The final product is directly supplied to the recipient without the content provider's involvement in recipient selection or sale, making it a straightforward sale of books.

2. Issue 2: HSN Code and Tax Rate Applicability
Regarding the HSN Code and tax rate for supplying books, the Authority determined that printed books fall under HSN Code 4901 10 10. The printed books were found to be exempt from tax under entry no. 119 of Notification No.2/2017-Central Tax (Rate) dated 28.06.2017 under the CGST Act, 2017. Similarly, they were exempt under entry no. 119 of Notification (02/2017) No. FD 48 CSL 2017 dated 29.06.2017 under the Karnataka Goods and Services Tax Act, 2017. Additionally, inter-State supply of printed books was exempt under the IGST Act, 2017, as per entry no. 119 of Notification No.2/2017-Integrated Tax (Rate) dated 28.06.2017.

3. Conclusion
The ruling stated that the supply of printed books by the applicant to religious schools is exempt from tax under various entries of different tax Acts. The exemption applies to the supply of printed books under CGST Act, KGST Act, and IGST Act, as specified in the respective notifications. The ruling provides clarity on the tax treatment of selling religious books and the applicable exemptions based on the HSN Code and relevant notifications.

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