TaxTMI 
TaxTMI 
2022 (8) TMI 868
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....nt is proposing to submit a bid in response to the tender floated by the Karnataka Secondary Education Examination Board for the printing of question papers and other examination materials. 3. The applicant has sought advance ruling in respect of the following questions: i. Whether the activity proposed to be undertaken by the Applicant, of printing stationery items such as question papers, admit cards, answer booklets, SSLC Pass Certificate, the overprinting of variable data and lamination, fail marks cards, Circulars, ID Cards and other formats used for and during examinations, envelopes for packing answer booklets on contract basis for the Karnataka Secondary Education Examinations Board and utilized for the conduct of examinations, would constitute a supply of service to an "educational institution" as defined in Notification 12/2017 CT(R)? ii. If the answer to the above Question 1 is yes, then whether the service provided to educational institutions, specifically the Karnataka Secondary Education Examinations Board by way of printing of stationery pertaining to the conduct of examination would be covered by Sr. No. 66 (Heading 9992) of Notification No.12/2....
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....tion and education upto 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;"; Further, clause (iv) of Explanation of said notification reads as below: "(iv) For removal of doubts, it is clarified that the Central and State Educational Boards shall be treated as Educational Institution for the limited purpose of providing services by way of conduct of examination to the students" 6.1.3 The applicant states that the legislative intent is very clear in that it defines "educational institution" as one which provides services facilitating in obtaining a qualification recognized by any law in force. Examinations form an integral part of this process of obtaining a degree and are in fact the determinant factor for whether a particular student obtains the said qualification or not. As such, they are "educational institutions". 6.2 The applicant submits that the Examination Board falls within the ambit of the term "educational institution" by virtue of judgments not only of diffe....
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....pted a similar approach in its Notification No.14/2018-Central Tax (Rate), dated 26th July, 2018 issued in exercise of powers conferred by sub-section (1) of Section 11 of the Central Goods and Services Tax Act, 2017, wherein it has been clarified that the Central and State Educational Boards shall be treated as educational institutions for the limited purpose of providing services by way of conduct of examination to the students. 6.6 The applicant draws attention to the clarification on taxability of printing contracts issued by the Government of India, Ministry of Finance, Department of Revenue, Tax Research Unit, vide Circular No.11/11/2017-GST dated 20-10-2017, as follows- 2. In the above context, it is clarified that supply of books, pamphlets, brochures, envelopes, annual reports, leaflets, cartons, boxes etc. printed with logo, design, name, address or other contents supplied by the recipient of such printed goods, are composite supplies and the question, whether such supplies constitute supply of goods or services would be determined on the basis of what constitutes the principal supply. 3. Principal supply has been defined in Section 2(90) of the Centr....
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....input content. 6.7 The applicant states that the supply in this case would be the service of printing and not the supply of printed materials as goods. In support of this point, the applicant has placed reliance on the ruling of the Hon'ble Uttar Pradesh Authority for Advance Rulings in the case of M/s. Maxwell Co. Private Limited, dated 30-06-2019. 6.8 In case of M/s. Orient Press Limited, the Maharashtra Authority for Advance Ruling, when posed the same query as to the taxability under GST of the supply of service of printing of Educational Boards, held as follows: "5.4. We find that question papers, OMR sheets (Optical Mark Reading), answer booklets are very essential and necessary requirements to conduct any examination. To print question papers the content i.e., the questions will be provided by the institution conducting the examination. The contents of the OMR sheets and answer sheets will also be provided accordingly by the institution. Para No.4 of Circular No.11/11/ 2017-GST dated 20-10-2017 issued vide F.No.354/ 263/ 2017-TRU by the Board states that "in the case of printing of books, pamphlets, brochures, annual reports and the like, where only conten....
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....n like matter and differ from each other only on a few specific provisions. Therefore, unless a mention is particularly made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the KGST Act. 9. We have considered the submissions made by the applicant in their application for advance ruling. We have also considered the issues involved on which advance ruling is sought by the applicant and the relevant facts along with the arguments made by the applicant. 10. The Applicant wants to know whether printing of question papers, admit cards, answer booklets, SSLC Pass Certificate, the overprinting of variable data and lamination, fail marks cards, Circulars, ID Cards and other formats used for and during examinations, envelopes for packing answer booklets on contract basis for the Karnataka Secondary Education Examinations Board would constitute a supply of service. 11. The applicant states that material for printing the Question Papers, answer booklets/scripts, etc. relating to the examinations is supplied by the Board and the usage rights of the material of Question Papers, answer booklets/scripts, Circu....
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.... 15. Notification No.14/2018-Central Tax (Rate) dated: 26.07.2018 has inserted a clause (iv) which reads as below: "(iv) For removal of doubts, it is clarified that the Central and State Educational Boards shall be treated as Educational Institution for the limited purpose of providing services by way of conduct of examination to the students." From the above clause it is evident that Karnataka Secondary Education Examination Board is an educational institution for the limited purpose of providing services by way of conduct of examination to the students. 16. Entry No.66 of Notification No.12/2017-Central Tax(Rate) dated 28th June, 2017 as amended vide Notification No.02/2018-Central Tax(Rate) dated 25th January, 2018 reads as under: Sl.No. Chapter, Section, Heading, Group or Service Code (Tariff) Description of Services Rate (per cent.) Condition 66 Heading 9992 Services provided - (a) by an educational institution to its students, faculty and staff; (aa) by an educational institution by way of conduct of entrance examination against consideration in the form of entrance fee (b) to an educational institution, by way of,- (....