2023 (10) TMI 631 - AAR - GST

Printing services for examination question papers supplied to educational institutions exempt from GST under Sr. No. 66 of Notification No. 12/2017-Central Tax

The AAR, West Bengal ruled that printing services for examination question papers supplied to educational institutions qualify as exempt supplies under ... Exempt supply - services relating to conduct of examination - educational institution (limited purpose: Central and State Educational Boards treated as educational institutions for conduct of examinations) - admissibility of advance ruling under clause (e) of section 97Exempt supply - services relating to conduct of examination - educational institution (limited purpose: Central and State Educational Boards treated as educational institutions for conduct of examinations) - Whether printing of question papers supplied by the applicant to universities for conducting examinations falls within Sl. No. 66 of Notification No. 12/2017-Central Tax (Rate) (as amended) and is an exempt supply. - HELD THAT: - The Authority examined the nature of services supplied by the applicant and the scope of serial number 66 of Notification No. 12/2017-Central Tax (Rate) (as amended). The Authority noted the explanatory insertion and Circular No. 151/07/2021-GST treating Central and State Educational Boards as 'educational institutions' for the limited purpose of services by way of conduct of examinations. The application of the applicant related to confidential printing of question papers and allied pre- and post-examination activities supplied pursuant to work orders from a university (Jharkhand University of Technology), which is undisputedly an 'educational institution.' The Authority observed that the process of conducting an examination encompasses pre-examination, examination and post-examination works, and that the applicant's activities fall within services relating to conduct of examination. On that basis, the supply of printing of question papers to the university is covered by Sl. No. 66 of the Notification and qualifies as an exempt supply under the Notification and the cited circulars. [Paras 4]Supply of printing question papers for conduct of examinations to educational institutions by the applicant is covered by Sl. No. 66 of Notification No. 12/2017-Central Tax (Rate) (as amended) and is an exempt supply.Final Conclusion: The Authority admitted the application only on the question whether the printing of question papers supplied to educational institutions is exempt under Sl. No. 66 of Notification No. 12/2017-Central Tax (Rate) (as amended), and ruled that such supplies by the applicant to universities for conduct of examinations are exempt supplies; the other refund-related questions were not admitted for advance ruling. Issues Involved:1. Whether the service of printing question papers for educational institutions is exempt under Sr. No 66 of Notification No. 12/2017-Central Tax (Rate) as amended.2. Whether GST previously charged on invoices for printing question papers should be refunded.3. Eligibility of the applicant to claim a refund of GST collected on such invoices under the principle of unjust enrichment.Summary:Issue 1: Exemption of Service of Printing Question PapersThe applicant, engaged in printing question papers for educational institutions, sought clarification on whether this service is exempt under Sr. No 66 of Notification No. 12/2017-Central Tax (Rate) as amended. The authority noted that the definition of 'educational institution' includes institutions providing services related to the conduct of examinations. The applicant's service of printing question papers for universities, which are recognized as educational institutions, was deemed to fall under the exempt category as per the notification and subsequent clarifications provided in Circular No. 151/07/2021-GST. Therefore, the service of printing question papers for the conduct of examinations to educational institutions is covered by Sr. No 66 of Notification No. 12/2017-Central Tax (Rate) as amended and is treated as an exempt supply.Issue 2: Refund of GST Previously ChargedThe authority clarified that the question of refund for GST previously charged on invoices for printing question papers does not arise as the exemption was applied prospectively from 25.01.2018. The applicant's request for a refund of GST paid prior to this date is outside the ambit of advance ruling and not covered under the clauses of sub-section (2) of section 97 of the GST Act.Issue 3: Eligibility for Refund under Unjust Enrichment PrincipleThe applicant's eligibility to claim a refund of GST collected on invoices under the principle of unjust enrichment was also found to be outside the scope of advance ruling as per section 97(2) of the GST Act. Therefore, the authority did not address this issue in the ruling.Ruling:The services of printing question papers for the conduct of examinations to educational institutions, supplied by the applicant, will be covered by Sl. No 66 of Notification No. 12/2017-Central Tax (Rate) as amended, and therefore shall be treated as exempt supply.