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

In Re: M/s. Saraswaty Press Limited

The AAR, West Bengal ruled that printing services for examination question papers supplied to educational institutions qualify as exempt supplies under ... Exempt supply or not - services to an educational institution - service of printing question papers for the conduct of examinations to educational institutions, supplied by the applicant - Sr. No 66 of the Notification No. 12/2017-Central tax (rate) as amended, and Notification No. 12/2017-State tax (rate) as amended - refund of GST previously charged on invoices to educational institutions for printing question papers for examinations - refund of GST collected on such invoices and deposit to the exchequer of the GST relating to the printing of question papers - principle of unjust enrichment. HELD THAT:- Circular No 151/07/2021-GST dated 17.06.2021 (CBIC-190354/36/2021-TRU Section-CBEC) has been issued for the purpose of clarification regarding GST on supply of various services by Central and State Boards (such as National Board of Examination) wherein it has been stated that 'Central and State Educational Boards' are treated as Educational Institution for the limited purpose of providing services by way of conduct of examination to the students. Therefore, NBE is an 'Educational Institution' in so far as it provides services by way of conduct of examination, including any entrance examination, to the students. It is noticed from the documents submitted that the applicant has been awarded agreement/work order by University namely Jharkhand University of Technology. There is no dispute that this University as referred above is regarded as ‘educational institution'. Whether the activities undertaken by the applicant against agreement/ work orders issued to him shall be treated as services relating to conduct of examination or not? - HELD THAT:- It has already been stated that the applicant has undertaken activities like confidential printing of question papers of different educational institutions and other related examination activities for universities. The process of conducting examination includes pre-examination works, the examination itself and post-examination works. The said activities can be treated as services relating to conduct of examination. The supply of services for printing of question papers being provided by the applicant to different universities for conducting examinations shall get covered under serial number 66 of the Notification No. 12/2017- Central Tax (Rate) dated 28th June, 2017/West Bengal State Notification No. 1136 FT. dated 28.06.2017, as amended. 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.