TaxTMI 
TaxTMI 
2019 (12) TMI 1005
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....e provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, the expression 'GST Act' would mean CGST Act and MGST Act. 2. FACTS AND CONTENTION - AS PER THE APPLICANT The submissions, as reproduced verbatim, could be seen thus- "The Applicant is a registered Charitable Trust, running a school, known as Maneckji Cooper Education School and is involved in educational activities since 1946. 2. The Applicant is a Trust registered under the Bombay Public Trust Act, 1950 as well as u/s 12A of the Income Tax Act 1961. 3. As per the last audited financial statements for the year ended 3 I st March 2017, the main sources of Income of the Applicant Trust were as under : Sr.No. Sources Gross Receipts in Lacs A Tuition Fees, Tutorial and Term fees from running the Maneckji Cooper School 787 B Income from forms, badges, files and other sundries relating to running of the school. 5 C Interest on securities, debentures, bonds, fixed deposits and savings accounts. 596 D Dividend on investments made. 20 E Royalty income from M/s. S. Chand & Co. 98 F Lease Rent of Plot of land at....
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....e business personals / entities are giving advertisement in the said Magazine with a very intention to help the trust in their main object, to provide Education in the school run by them. During the financial year ending on 31/03/2018, amount received under the said head is Rs. 311788/-. Royalty Income: The applicant trust was earlier engaged in printing & publication of Education books compiled/written by Wren and Martin under rights given to the trust. Later on the applicant has stopped printing and publishing the said books and entered into agreements from time to time permitting S. Chand & Company Ltd. having it's registered office at Ram Nagar, New Delhi - 110055; allowing them to publish the said educational books for consideration payable from time to time, as per the terms of the different agreements entered into with them and renewed after expiry of terms of earlier agreement. Total receipt from S. Chand & Co. Ltd. during period ending 31/03/2018 is Rs. 9478946/- and tax on the same is paid on reverse charge mechanism by the said company at appropriate rate under GST Act, while discharging their liability under GST Act. Hence the applicant is not liable to make payment ....
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....he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds twenty lakh rupees: Provided that where such person makes taxable supplies of goods or services or both from any of the special category States, he shall be liable to be registered if his aggregate turnover in a financial year exceeds ten lakh rupees. Further, as per Notification No. 10/2019-Central Tax, Any person, who is engaged in exclusive supply of goods and whose aggregate turnover in the financial year does not exceed forty lakh rupees, except, - (a) persons required to take compulsory registration under section 24 of the said Act; (b) persons engaged in making supplies of the goods, the description of which is specified in column (3) of the Table below and falling under the tariff item, sub-heading, heading or Chapter, as the case may be, as specified in the corresponding entry in column (2) of the said Table; (c) persons engaged in making antra-State supplies in the States of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura, Uttarakhand; and (d) persons ex....
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....dary school or equivalent; or (ii) education as a part of an approved vocational education course. Breakup of fees collected, i.e. quantum of Tuition fees, Tutorial fees, Term fees, Special coaching fees or any other fees is not available. Hence, this office cannot quantify taxable and exempted supply from supply made by applicant under this subhead. 2. Income from forms, budges, files and other sundries relating to running of the school Being supply of goods, items included under this subhead are not covered under notification mentioned in previous paragraphs. Further these items are covered under following entries and they are taxable in GST. Sr. No. Description HSN Code Rate (%) Related Export / Import HSN Code 1. Uncoated paper and paperboard, of a kind used for writing, printing or other graphic purposes, and non perforated punch-cards and punch tape paper, in rolls or rectangular (including square) sheets, of any size, other than paper of heading 4801 or 4803; hand-made paper and paperboard 4802 12 48021010, 48021020, 48022010, 48022090, 48024000, 48025410,48025420, 48025430, 48025440, 48025450,48025490, 48025510,....
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.... investments made Income under this subhead constitutes exempted supply under GST. 5. Royalty income from M/s S. Chand and Co The applicant is owner of copyright in school and college textbooks (originally owned by K & J Cooper). Applicant as licenser has entered in agreement, on 30 April 1981, with S Chand and Co (Licensee), to continue articles of agreement dated 1May 1971, appointing licensees their exclusive publishers of the said school and college text books. The Licensees agreed to pay the royalty to the licenser. Notification No 13/2017 dated 28th June 2017 is issued as per provisions of Section 9 of the CGST Act, 2017 notifying various categories of supply of services on which GST shall be paid by recipient of services. Notification No 13/2017 dated 28th June 2017 - Sr. No. Category of Supply of Services Supplier of Service Recipient of Service 1. Supply of services by, an author, music composer. photographer. artist or the like by way of transfer or permitting the use or photographer, artist, enjoyment of a copyright covered under clause (a) of sub-section (1) of section 13 of the Copyright Act, 1957 relating to original literary, dramatic....
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.... (c) ... In view of above, this office is of opinion that Income received by applicant from S.Chand and Co. does not fall under following service code- SAC Code 999632 Services of authors, composers, sculptors and other artists, except performing artists This service code includes: i. services of authors, composers, sculptors ii. services of stage designers, set designers, lighting designers, costume designers; restoration services for works of art but it should be included under following head. SAC Code - 997334 Licensing services for the right to reprint and copy manuscripts, books, journals and periodicals. This service code includes licensing services for the right to reproduce, distribute or incorporate literary originals such as reprinting and copying of manuscripts, books, journals and periodicals Notification No 13/2017 dated 28th June 2017 allows authors to discharge their tax liberty in Reverse Charge Mechanism. However, this office is of opinion that, as the transaction done by applicant is covered under entry 9997344 which is taxable outward supply at 18% tax rate and is not covered under Reverse Charge Mechanism. 6. L....
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....sed by them i.e. "whether the registration certificate which they are presently holding should be surrendered", is not within the purview of Section 97 (2) of the CGST Act and therefore their application cannot be entertained. In response Shri Bharat Shah stated that he was in agreement and submitted that they would file a fresh application with respect to their query on Royalty Income. Jurisdictional Officer, Shri Harshad Kumar, Asstt. Commr., Nodal-6, State GST, was present and submitted his say as well as written response to the subject application. 05. OBSERVATIONS 5.1 We have gone through the facts of the case, documents on record and submissions made by the applicant as well as the jurisdictional office. 5.2 We find that applicant is registered person under GST Act and receiving taxable income for goods/services supplied by them. 5.3 The subject application was admitted on the basis of oral contention and written submission made by the applicant. However, on perusal of the submissions and documents on record, we find that the query raised by the applicant is, whether they should surrender their existing GST registration. The questions posed by the applicant ....