AI Drafter 
TaxTMI 
TaxTMI 
TaxTMI 
2020 (3) TMI 1088
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....Education Secretariat to cater to the Printing and Stationery requirements of the requirements of the State Government offices namely Governor's Office, Legislature, Government Secretariat, High Court, and Other Government Departments. 3. The printing and stationery requirements of Government owned bodies are also taken care of by the Applicant on chargeable basis. Applicant also engaged in selling of the Government Publications to General Public through a network of Book Depots. The Applicant has also extended its technical assistance to various other Departments whose printing works, are being executed by the private printers. Besides this they also undertake the Printing works and supply of Stationery to Government of India Departments namely Chief Election Commissioner Office, Census Department etc., on chargeable basis. 4. The Applicant also executes the printing and sale text books as per the indents placed by the Karnataka Text Book Society. The sale of text books are being executed on chargeable basis while the free text books are printed and supplied at free of cost. Steps are being taken for the printing & sale of Pre-University Text Books of smaller quantity throug....
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....city Regulatory Commission, Chamundeshwari Electricity Supply Company, Power Company of Karnataka Limited, BESCOM / HESCOM / MESCOM /KPTCL, Udupi / Bellary Nagarabhivrudi Pradhikara, Higher Education Council. These items are charged and hence paying GST @ 12%. 6. Supply of IAS, KAS Civil lists We are supplying to DPAR of the Government of Karnataka, hence, we are claiming exemption as we are not charging for the supplies Made. 7. Supply of RTO challan and security forms of Transport Department. We are claiming exemption as we are riot charging for the supplies made. 8. Supply of different kinds of Modules pertaining to Department of State Educational Research and Training. These Printed materials are supplied to one of the Government Departments and tax is charged at the rate of 12% on the supplies made. 9. Handbooks related to Election work It is supplied to the Election Commission in Karnataka. We are charging and paying tax at the rate of 12% on the supplies made to the Election Commission. 10. Supply of Various Forms/Registers to ESIS Medical Services, Kidwai Cancer Institute, General Hospital, Community Health Centre as per their requi....
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..... These goods are supplied by us and we are Paying Transportation Charges along with the GST @5%. 18. Calendars to Specific Departments as per their Requirements Supplied to Library, RDPR and Legal Service Authority-we are charging and paying tax on the supplies made at 12%. High Courts -We are not charging for the supplies made hence we are claiming exemption 19. Economic Survey of Government of Karnataka Supplies are made on non-chargeable bases A small portion is sold through Book Depots to the General Public and tax is charged at 12%. 20. Receipt Books, Measurement Books, File Wrappers, Log Books, Registers, Bill Forms, etc. We are charging tax @ 12% GST on these supplies made to Autonomous Bodies sold through our Book Depots. We are claiming exemption on these materials supplied to Government Departments. We are also selling the same to the public and collecting tax @ 12% GST 21. Receipt Book (KFC-1) Printed and supplied to Chamundeshwari Electricity Supply Company, Universities, Hospitals, Davanagere Smart City, Electronic City Industrial Township Authority, Legal Services Authority, Technical Service Centre etc. and collecting tax at....
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....ipient of supply] is the principal supply and therefore such supplies would constitute supply of service falling under heading 9989 of the scheme of classification of services". As per entry No.8 of the notification No.12/2017 dated 28/06/2017, the printing & supply of text books by one Government Department to another Government Department is exempted under the CGST Act and KGST Acts. Hence, it requested to clarify whether this activity is exempt under the CGST & KGST Acts or not. 2) If the text books are supplied to public or recognised book stalls, whether it is treated as taxable /exempted goods or services. If it is goods, can we claim exemption under SI. No.119 of the Notification No.2/2017 3) If these services are taxable services, what is the rate of tax? 2. Karnataka Kaipidi, Karnataka Gazette Government Departments & Karnataka Gazetter Department Receipient 1) The applicant is engaged in printing of Karnataka Kaipidis/ Karnataka Gazzettes from the contents provided by the receipient to whom the supply is to be made. This service is provided by one Government Department to another Government Department. Hence, it is exempted as per entry No. 8 of the n....
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....cluding paper belonging to the printer, predominant supply is that of goods and the supply of printing of the content is ancillary to the principal supply of goods". Since these supplies are made by one Government Department to another Government Department, whether they are exempted under SL. No. 150 of the Notification 2/2017 dated 28/06/2017. PI clarify. 2) If they are taxable, pl clarify under which entry and notification the said goods would fall? 5. Sale of waste paper, old sweepings, old & obsolete forms & books unusable articles as waste and sale of old machinery Public The goods are sold through public auction The applicant being a Government organisation sells the paper waste as is where condition through the public auction is. Whether the understanding of the rate of tax is correct or not may please be clarified. 6. Sale of old machinery Public sold through public auction If the old machinery is sold as scrap, what is the rate of tax and the entry and notification may please be clarified 7. All stationery Articles Government Departments Purchased from Registered dealers & sold to Government Departments Since the stationery ....
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.... of the Notification No.12/2017 Dated 28/06/2017. Is it exempted from the levy of GST as the same is supplied by one Government Department to another Government Departments? Pl clarify. 12. Indian Law Reports High Court of Karnataka Receipient The contents of the Law reports are provided by the High Court of Karnataka. These materials are provided to them at Free of cost. Whether we are eligible for exemption on the supply of these services vide entry No.8 of the Notification No.12/2017 dated 28/06/2017. Pl clarify 13. Karnataka Gazette NOC'S to Private Person's for Change of Name at Rs. 100/ - Since we are giving the NOC to private persons at a price of Rs. 100-00 we are not charging any GST at present. In this case the contents are provided by the receipient. PI clarify 1) whether these are goods / services exempted under the Act 2) If these are goods under what entry the goods are taxable and at which rate? 3) If these are services under what entry these services are taxable and at which rate? 14. Text Books KTBs Receipient The contents of the text book is provided by the Government. Since the text books are supp....
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....heir application for advance ruling as well as the submissions made by Sri. Y C Shiva Kumar, duly authorised representative of the applicant during the personal hearing. We have also considered the issues involved, on which advance ruling is sought by the applicant, and relevant facts. 8.2 At the outset, we would like to state that the provisions of both the CGST Act and the KGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the KGST Act. 8.3 The applicant is a printing press under the Government of Karnataka, catering to the printing needs of various departments of Karnataka Government, Government of India, High Court of Karnataka and other autonomous bodies / corporations. The applicant seeks advance ruling in respect of the questions mention at para 6 supra. It could be seen that the applicant's activities are predominantly concerned with printing. In this regard we draw attention to the Circular No.11/11/2017-GST dated 20.10.2017, wherein clarification on taxability of printing contracts has been issued. ....
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....urnals, Flags & posters, Karnataka Examination Authority Information Book, other Forms, Award certificates, Measurement Book, Employment Cards, Compendium, manuals, Reports( RTI, Annual & Performance & Compendium) Audit accounts, Annual & Performance, Compendium, Receipt Books, Challans, Paper Testing Reports, Legislative Assembly & Council Debates, Lists, Bills & Brouchers, Various Types of Registers & Forms, Karnataka Civil Service Rules. 8.9 Issue No.1 The applicant raised the following 3 questions with regard to printing of text books & printed material. 1. Whether the activity of printing & supply of text books & printed materials, provided by the applicant to various Departments of Government of Karnataka, is entitled to exemption under entry No.8 of the Notification No. No.12/2017 Central Tax (Rate) dated 28/06/2017, read with para 4 of the Circular No. 11/11/2017-GST dated 20.10. 2017? 2. If the text books are supplied to public or recognised book stalls, whether it is treated as taxable /exempted goods or services. If it is goods, can we claim exemption under Sl. No.119 of the Notification No. 2/2017? 3. If these services are taxable servic....
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....hether the aforesaid items that are supplied by the Government Press (applicant) to various Government departments, against the orders given by them, amounts to supply of goods, in terms of para 5 of circular No.11/11/2017 dated 20.10.2017? If so, whether the said supply is entitled for exemption under Sl. No. 150 of the Notification 2/2017-Central Tax (Rate) dated 28/06/2017? 12. What is the relevant notification & entry number therein, if the aforesaid goods are taxable? 8.13 Issue No.5: This issue is related to sale of waste paper, old sweepings, old & obsolete forms & books, unusable articles as waste and sale of old machinery. The applicant being a Government organisation sells the paper waste in as is where condition through public auction. In this regard the applicant raised the following question. 13. Whether the applicant's understanding of rate of tax (GST) of 5% is correct or not, on sale of waste paper? 8.14 Issue No.6: This issue is related to sale of old machinery as scrap. The applicant further states that the old machinery, if sold in the same form, is taxable @ 18% GST, in terms of Sl.No.335 of Schedule III of CGST Act 2017. The applicant ra....
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....y of receipt books (KFC-1) to Chamundeshwari Electricity Supply Company, Universities, Hospitals, Davanagere Smart City, Electronic City Industrial Township Authority, Legal Services Authority, Technical Service Centre etc., The contents of the receipt books is provided by receipients and the printed receipt books are supplied to Government Departments and Autonomous bodies. The applicant contends that the supply of receipt books is treated as supply of service and eligible for exemption vide entry no. 8 of the Notification No.12/2017 dated 28/06/2017 and raises the following question. 20. Whether the aforesaid supply of receipt books, to Government Departments & Autonomous bodies, is eligible for exemption under the GST Act or not? 8.19 Issue No. 11: This issue is related to printing & supply of measurement books to Karnataka Neravari Nigama, PWD, Zilla Parishad, Panchayat Raj Engineering Division, Grameena Drinking Water and Nyrmalya, NIMHNS, Shishu Abhivrudhi Yojane, Karnataka Maha Risha Valamiki Parishishta Pangadagala Abhivrudhi Niyamitha, for which the content is provided by the Government Departments. The applicant raises the following question in this regard.....
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....ard the applicant raised the following 3 questions. 26. Whether the aforesaid activity is exempted under the CGST & KGST Acts or not? 27. The text books are supplied to recognised book stalls to sell them to the public on behalf of the Government whether it is treated as taxable or exempted goods or services. If it is goods, can we claim exemption under Sl. No.119 of the Notification No.2/2017? 28. If these services are taxable services, what is the rate of tax? 8.23 Issue No. 15 : This issue is related to printing & supply of bus tickets to the BMTC, Bengaluru. The Logo and the content of bus tickets is provided by the receipient. The applicant contends that the contents are negligible compared to materials, the activity qualifies to be treated as goods and stats that they are collecting GST @ 12%, at present. In this regard, the applicant raises the following 2 questions. 29. Whether the aforesaid supply qualifies to be supply of taxable goods or services? 30. What is the rate of tax & under which entry these goods/services are taxable? 8.24 Issue No. 16 : This issue is related to printing & supply of Log Books to Karnataka....
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....idis/Karnataka Gazettes & Economic Survey of Government of Karnataka to Public & recognised book stalls, where the content is provided by any of the department of Government of Karnataka. (Goods) Miscellaneous Supplies f. Supply of waste paper, old sweepings, old & obsolete forms and books, unusable articles as waste. g. Supply / sale of old machinery as scrap h. Supply of Stationery articles to Government Departments i. Taxability of Transportation charges paid by the Applicant j. Printing & Supply of "Indian Law Reports" to the Hon'ble High Court of Karnataka k. Issuance of No Objection Certificate (NOC) to private persons, for change of name l. Printing & Supply of Bus Tickets to BMTC, Bengaluru. 10. We proceed to examine & take up each category, one at a time, in the following paras. a. Supply of Service to Various Departments of Government of Karnataka: This category covers the questions bearing numbers 1,4,7,9,18,20,21,26,31,32 & 33 as mentioned above. In all these questions the applicant is engaged in printing of text books & printed material / Annual Reports / receipt books/ measurement books & log b....
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....e said Act read as under: "The value of a supply of goods or services or both shall be the transaction value, which is the price actually paid or payable for the said supply of goods or services or both where the supplier and the recipient of the supply are not related and the price is the sole consideration for the supply" It could be inferred from the above that for the transaction to qualify as a supply, a supplier and receipient are required, whether real or deemed. In the instant case the applicant as well as the receipient are both different part of the Government of Karnataka, which is a single entity. Therefore in the absence of distint supplier and receipient, the instant transaction does not qualify to be a supply in terms of Section 7(1)(a) of the CGST Act, 2017. Further, the third condition is not required to be discussed as the second condition is not satisfied. However, If the activity of printing and supply is done to the Departments of same Government of Karnataka who have obtained separate registration under the GST Act, then the said activity amounts to supply in terms of Section 7(1)(a) of the CGST Act 2017 and exigible to tax. The applicant ....
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....ataka who have not obtained separate registration under the GST Act does not qualify as supply in terms of Section 7(1)(a) of the CGST Act 2017, as explained in para 10 (a) supra. However, if the said supply is done to the other Departments of Government of Karnataka who have obtained separate registration under the GST Act, said transaction qualify as supply in terms of Section 7(1)(a) of the CGST Act 2017 and liable to tax under GST. c. Supply of Service to Autonomous bodies: This category covers questions bearing numbers 8 & 20, which deals with printing & supply of Annual Reports / Receipt Books respectively, to autonomous bodies i.e. BRTS Company, Hubli-Dharwad Karnataka Electricity Regulatory Commission, Chamundeshwari Electricity Supply Company, Power Company of Karnataka Limited, BESCOM / HESCOM / MESCOM / KPTCL, Udupi / Bellary Nagarabhivrudi Pradhikara, Higher Education Council; content is provided by autonomous bodies; physical inputs including paper belong to the applicant. The printing of books / annual reports and like, where content is supplied by the persons who owns the usage rights to the intangible inputs, while the physical inputs including paper ....
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....ontent is provided by any of the department of Government of Karnataka and physical inputs including paper belong to the applicant. In this case, the applicant supplies the aforesaid items out of the readily available stock, for which the content does not belong to the recipient and hence supply of the said items amounts to supply of goods. All the items in the instant issue, i.e. Text books/ Karnataka kaipidis/Karnataka gazettes & Economic Survey of Government of Karnataka, are nothing but printed books and merits classification under Chapter Heading 4901. Entry No.119 of Notification 02/2017-Central Tax (Rate) dated 28.06.2017 exempts the printed books i.e. goods falling under heading 4901. The impugned items are squarely covered under the said entry and hence are exempted. f. Supply of waste paper etc., This category covers question number 13, which deals with supply of waste paper, old sweepings, old & obsolete forms and books, unusable articles as waste. The applicant has not provided any relevant information with regard to unusable articles as to whether they are of paper only or not. Hence it is considered that the unusable articles & old sweepings are of paper only....
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.... as the applicant is acting like a pure Agent. Thus the applicant raised question as to whether it is pure agent transaction and eligible for exemption or not and if taxable, the relevant entry / notification number. "Pure agent", in terms of Rule 33 of CGST Rules 2017, means a) a person who enters into a contractual agreement with the recipient of supply to act as his pure agent to incur expenditure or costs in the course of supply of goods or services or both; b) neither intends to hold nor holds any title to the goods or services or both so procured or supplied as pure agent of the recipient of supply; c) does not use for his own interest such goods or services so procured; and d) receives only the actual amount incurred to procure such goods or services in addition to the amount received for supply he provides on his own account. It could be seen from the above that for a person to act as a pure agent he must be a supplier of goods or services or both and then he must procure certain goods or services for the said supply, for which, he incurs expenditure, under the agreement, and collects the said expenditure in addition to the value of....
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....ate) dated 28-06-2017, then the applicant is liable to pay GST on the service of GTA, under Reverse Charge Mechanism, in terms of the said Notification. The applicable rate of GST, on the said service is as per item (iii) of entry no 9 of the notification 11/2017 Central tax (Rate) dated 28/06/2017 as amended by the notification 20/2017 Central tax (Rate) dated 22/08/2017. The applicant, in the second situation, if receives the service of transportation of goods [the text books & other printed forms/PUC answer booklets] by road from other than the GTA and Courier agency, such transportation service is exempted from payment of GST as per entry no. 18 of the notification 12/2017 Central Tax (Rate) dated 28/06/2017. The applicant also seeks advance ruling on the issue that whether they can deduct TDS on the transportation charges paid. The applicant has to pay GST, under RCM, in the first situation and not required pay in the second situation. Therefore in either of the situation the applicant not paying the tax (GST) to the provider of the service and hence the question of deduction of TDS on the transportation charges paid does not arise. j. Printing & Supply of "Indian Law....
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....d under the GST Act, means any person carrying out busness. However, Honourable High Court is not included in the definition of the 'person' as defined under section 2(84) of the GST CGST Act 2017and hence Honourable High Court Karnataka is not a business entity. The definition of 'person' as per section 2 (84) of the CGST Act, 2017 is as under; 2 (84) "person" includes- (a) an individual; (b) a Hindu Undivided Family; (c) a company; (d) a firm; (e) a Limited Liability Partnership; (f) an association of persons or a body of individuals, whether incorporated or not, in India or outside India; (g) any corporation established by or under any Central Act, State Act or Provincial Act or a Government company as defined in clause (45) of section 2 of the Companies Act, 2013; (h) any body corporate incorporated by or under the laws of a country outside India; (i) a co-operative society registered under any law relating to co-operative societies; (j) a local authority; (k) Central Government or a State Government; (l) society as defined under the Societies Registration Act, 1....
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....ar No. 11/ 11/2017-GST' dated 20.10. 2017. In the instant case the applicant is involved in printing & supply of bus tickets; content is provided by the BMTC (recipient); physical inputs including paper belong to the applicant and hence the impugned activity amounts to supply of service, in terms of para 4 of the circular supra. The impugned supply is that of services, classified under SAC 9989 and attracts 12% GST, in terms of Sl.No.27 of Notification No.11/2017-Central Tax (Rate) dated 28.06.2017. 11. The applicant raised the questions bearing numbers 3, 10, 12 & 28, which are related to different issues. In all these questions the applicant raises same type of question whether the activity in these different issues amounts to supply of goods or services. These questions have been already answered in the relevant issues and hence they are redundant. 12. In view of the foregoing, we pass the following RULING The rulings in respect of all the questions raised by the applicant have been given & tabulated which are as under: Sl.No. Items involved in the supply Supplied to Supply amounts to Whether supply is Taxable/Exempted Rate of Tax applicable R....