AI Drafter 
TaxTMI 
TaxTMI 
2020 (12) TMI 1332
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....ivate Limited, Plot No., Near Seva Sadan, Adarsh Nagar, Jaipur-302004 Rajasthan -(hereinafter the applicant) is fit to pronounce advance ruling as it falls under the ambit of the Section 97(2) (a) given as under: - a. Classification of goods and /or services or both; Further, the applicant being a registered person (GSTIN is 08AAICM8786G1ZT as per the declaration given by him in Form ARA-01) the issue raised by the applicant is neither pending for proceedings nor proceedings were passed by any authority. Based on the above observations, the applicant is admitted to pronounce advance ruling. A. SUBMISSION AND INTERPRETATION OF THE APPLICANT; 1. The applicant is engaged in the business of supplying answer booklets / copies to educational institutions. The process involves:- • procuring of raw material i.e. paper roll • performing the activity of printing of the content provided by such educational institution such as its Name, Logo, Serial No. and other particulars and lines on such paper roll with the help of the machinery. • Printed paper is then cut in required size and numbers. It is important to mention here that answer bo....
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....upply forming part of that composite supply is ancillary. 3. The activity of printing of Answer Booklet involves procuring of raw material which is paper and thereafter, printing the content provided by educational institution such as its Name, Logo, Serial No. and other particulars and lines on such paper with the help of the machinery and once the printing is done the printed paper is cut in required size and numbers. Paper so cut is then stitched in required number of sheets to form answer booklet. It is important to mention here that lined pages of answer booklet are blank except for name of the educational institution on the cover page with some particulars and its logo on every page so that it can be identified to that educational institution. Then the number of booklets is arranged in lot of 100/200 to form bundles which are then packed and delivered to the educational institutions. Consideration from educational institution is received on the basis of number of Answer Booklets supplied. The major component of cost of the Answer Booklet is paper. Out of total cost per answer booklet approx.80% of cost is of the paper and the balance 20% is cost of printing, packaging etc.....
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....ution is ancillary to the principal supply which is of goods. The applicant places reliance on the Chapter Note 12 of Chapter-48 of Customs Tariff which are also made applicable to rate schedule of GST in terms of explanation (iii) and (iv) of the GST Rate Schedule. According to Chapter Note 12 paper or paperboard printed with motif, characters or pictorial representations not merely incidental to the primary use of the goods fall in Chapter-49. Whereas in the case of the applicant printing of name, logo and serial no. of educational institution is merely incidental to its primary use which is writing therefore, such answer booklets are classifiable under Chapter-48 of the GST Rate Schedule. Further, reliance is placed on the Circular No.1052/1/2017-CX dated 23.02.2017 issued under the Central Excise Regime relevant extract of which is reproduced as under: - Representations have been received from trade associations that consequent upon insertion of Chapter note 14 (w.e.f. 28-5-2012) to the Chapter 48 of Central Excise Tariff Act, 1985 disputes have cropped up in respect of classification of railway/bus/other tickets/passes, railway ticket rolls and bus ticket rolls, mark ....
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....re classifiable under this heading. (g) Also, as per HSN explanatory notes to heading 49.01 printed cards bearing personal greetings, messages or announcements (heading 49.09), and printed forms which require the insertion of certain additional information for completion are excluded from this heading. (h) As per explanatory notes to heading 4907 (F), "Stock, share or bond certificates and similar documents of title are formal documents issued, or for issue, by public or private bodies conferring ownership of, or entitlements to, certain financial interests, goods or benefits named therein. Apart from the certificates mentioned these documents include letters of credit, bills of exchange, travellers' cheques, bills of lading, title deeds and dividend coupons. They usually require completion and validation." (i) As per explanatory note to heading 49.11, "Certain printed articles may be intended for completion in manuscript or typescript at the time of use but remain in this heading provided they are essentially printed matter. Thus, printed forms (e.g., magazine subscription forms), blank multi-coupon travel (e.g., air, rail and coach) tickets, circula....
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....f service by virtue of S. No. No. 66(b)(iv) of the Notification No. 12/2017 -Central Tax (Rate) dated 28.06.2017 as amended; Entry No. 69(b)(iv) of Notification No. 2/2018- Integrated Tax (Rate) dated 28.06.2017 as amended; Entry No. 66(b)(iv) of Notification No. F. 12(56) FD/Tax/2017-Pt-I-50 dated 29.06.2017 issued by Tax Division of Government of Rajasthan as amended? b) If not exempted service, then whether the said service is classifiable under Service Accounting Code / Head - 9989 or 9992 under CGST Notification No.11/2017-CT(Rate) dated 28.06.2017 as amended; IGST Notification No. 8/2017-Integreted Tax (Rate) dated 28.06.2017 as amended; Notification No. F. 12(56) FD/Tax/2017-Pt-I-49 dated 29.06.2017 issued by Tax Division of Government of Rajasthan as amended? c) What will be the rate of tax on such service under aforesaid notification? i. if classifiable under - 9989 whether a. 12% under S. No. 27(i) or b. 18% under S. No. 27(ii) of the Notification or; ii. if classifiable under - 9992 under S. No. 30 then 18% Applicant's interpretation of law a. Eligibility of exemption under Entry No. 66(b)(iv) of the Notification No. 12....
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....ervices by way of,- (i) pre-school education and education up to higher secondary school or equivalent; (ii) Education as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force; (iii) education as a part of an approved vocational education course, From the perusal of the aforesaid entry of the exemption notification it is evident that the service of supply of answer booklets to educational institution is towards conduct of examination. The service so provided by the applicant towards pre-examination items will be used by the educational institution for conduct of examination. The applicant submits that the aforesaid exemption as outlined in the notification will be applicable to the applicant's case. Thus, the services provided by the applicant to the educational institutions by way of supply of pre-examination materials will not be liable to Goods and Service tax. b. Classification The applicant submits that without causing prejudice to the fact that the supply of Answer Booklets to the Educational Institution is supply of goods if for the sake of discussion, it is presumed that such supply is ....
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....ated as exempted supply of service by virtue of S. No. No. 66(b)(iv) of the Notification No. 12/2017 - Central Tax (Rate) dated 28.06.2017 as amended; Entry No. 69(b)(iv) of Notification No. 2/2018- Integrated Tax (Rate) dated 28.06.2017 as amended; Entry No. 66(b)(iv) of Notification No. F. 12(56) FD/Tax/2017-Pt-I-50 dated 29.06.2017 issued by Tax Division of Government of Rajasthan as amended? b) If not exempted service, then whether the said service is classifiable under Service Accounting Code / Head - 9989 or 9992 under CGST Notification No. 1 l/2017-CT(Rate) dated 28.06.2017 as amended; IGST Notification No. 8/2017-Integreted Tax (Rate) dated 28.06.2017 as amended; Notification No. F. 12(56) FD/Tax/2017-Pt-I-49 dated 29.06.2017 issued by Tax Division of Government of Rajasthan as amended? c) What will be the rate of tax on such service under aforesaid notification? i. if classifiable under - 9989 whether a. 12% under S. No. 27(i) or b. 18% under S. No. 27(ii) of the Notification or; ii if classifiable under - 9992 whether 18% PERSONAL HEARING In the matter personal hearing was conducted on 03.09.2020 through Video co....
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....7. 6. In case of supply of printed envelopes, letter cards, printed boxes, tissues, napkins, wall paper etc. falling under Chapter 48 or 49, printed with design, logo etc. supplied by the recipient of goods but made using physical inputs including paper belonging to the printer, predominant supply is that of goods and the supply of printing of the content [supplied by the recipient of supply] is ancillary to the principal supply of goods and therefore such supplies would constitute supply of goods falling under respective headings of Chapter 48 or 49 of the Customs Tariff. 7. The Circular No. 1057/06/2017-CX 07.07.2017 has clarified that that exercise Books have been explained in HSN under explanatory note (2) to Heading 4820 as, "These may simply contain sheets of lined paper but may also include printed examples of handwriting for copying in manuscript". Such exercise Books are specifically classified under heading 4820 of the erstwhile CETA, 1985. These are nothing but stationary items having blank pages with lines for writing and may also include printed texts for copying manually. In common parlance they are more akin to handwriting "note books" for practicing rather tha....
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....l Goods and Services Tax Act and classifiable under Ch. 49. 8. FINDINGS, ANALYSIS & CONCLUSION: 1. We have gone through the record of the case and taken into consideration submission made by the Appellant in their application and additional submission made by the applicant at the time of personal hearing. 2. The applicant is engaged in the business of supplying answer booklets/copies to educational institutions as mentioned by the applicant in their form GST ARA-01 dated 27.05.2020. 3. The applicant has sought advance ruling on classification and nature of the activity of printing of Answer Booklets/ Answer copies and supplying it to Educational Institutions to be used in examinations by using its own raw material consisting of paper, printing ink etc. 4. The nature of the activity carried out by the applicant for printing of Answer Booklets/Answer copies with or without OMR and supplying it to Educational Institutions which is to be used in examinations by using its own raw material consisting of paper, printing ink etc. further it is observed that the content as provided by educational institutions such as its name, logo, serial No., watermark is printed on the ans....
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....me logo etc. of his customer and the printing material used in printing of the said items pertains to the applicant. We further observe that the supply of printing to the content as supplied by the recipient of the supply is the ancillary to the principal supply of the answer booklets/copies with or without OMR, therefore the supply will be considered a supply of goods falling under respective heading of chapter 48 or 49 of custom tariff. 8. To ascertain under which chapter heading will supply of goods be covered either Chapter 48 or 49 of the customs Tariff, the Circular No. 1052/1/2017-CX dated 23.02.2017 issued under the Central Excise Regime relevant extract of which is reproduced as under: - Representations have been received, from trade associations that consequent upon insertion of Chapter note 14 (w.e.f. 28-5-2012) to the Chapter 48 of Central Excise Tariff Act, 1985 disputes have cropped up in respect of classification of railway / bus/ other tickets/passes, railway ticket rolls and bus ticket rolls, mark sheets/ certificates, OMR Sheets/Answer Books with OMR, Answer booklets, inland letter cards, passbooks, applications forms, paper outer strip seal, Railway r....
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....lude printed texts for copying manually. In common parlance they are more akin to handwriting "Note books" for practicing rather than "work books" containing printed exercise. This definition of Exercise Books is in harmony with other items specified under Chapter Heading 4820 of erstwhile CETA, 1985 such as registers, note books, diaries, letter pads etc. where printing is incidental to their primary use i.e. writing. The fact that printing is incidental to their primary use is the guiding principle for classification of Exercise Books under heading 4820 of erstwhile CETA, 1985...... 10. According to circular No. 1052/1/2017-CX dated 23.02.2017, and the Circular No. 1057/06/2017-CX 07.07.2017, the Answer booklets with or without OMR fall under chapter heading 4820. It is including Note books, Exercise book, etc. where the predominant activity is its use for writing and printing is merely incidental or ancillary to the primary activity. 11. The goods falling under heading no. 4820 falls under Schedule II & III to the Notification No. 01/2017-Central Tax (Rate), dated 28/06/2017 as detailed below:- (i) 4820 (S. No. 123 of Schedule II): - Exercise book, graph book & La....