AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2026 (4) TMI 133
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....ine Admission booklet results in supply of goods or services or both under the GST Act? If yes then at what tax rate? 4. Whether the sale of books under Open Book sale amounts to supply of goods or services under the GST Act? If yes then at what tax rate? 5. Whether the supply of any books under the orders received from Education Ministry on specific edition other than textbooks results in supply of goods or services or both under the GST Act? If yes then at what tax rate? 6. Whether printing of any books, study material or any other publications other than textbooks amounts to supply of services or goods or both under the GST Act? If yes then at what tax rate? At the outset, we would like to make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to any dissimilar provisions, a reference to the CGST Act would also mean a reference to the same 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. 1. FACTS AND CONTENTION - AS PER THE ....
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.... • One Representative of Secondary School Teachers- Member • Three leading Experts in the field of School Education and Textbook Production - Member 1.4 Objectives- • To prepare textbooks for all the primary schools in Maharashtra (Classes I to XI) • To print and distribute textbooks of all subjects for all the primary, secondary and higher secondary schools in Maharashtra. • To prepare other instructional materials for schools in Maharashtra including teachers' handbooks, teachers' editions, dictionaries other work book, practical books and supplementary books. • To make available quality material at a low price. • To undertake improving the materials. Educational research for curriculum and instructional • Providing assistance and inspiration for the proliferation of school education. Arranging for the printing, publishing, storage, distribution and sales of textbooks and educational material. • To aid and promote advancement of education in general and of primary and secondary education in particular; • To produce school textbooks, (1st to 8th std. i....
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....orting Educational material for std. 1st to 12th. 1.8 Our Publications- • Textbooks • Teachers Handbook • Work Books • Practical notebooks • Dictionary • Supplementary books -- • Journal &periodicals (Kishor) • Integrated and Bilingual textbooks. • Textbooks for especially abled students. • Open board books for V, VIII & X std. students. • Non textual books for students, parents & teachers. Textbooks fall under Chapter No.49 HSN code 4901 CGST Act 2017, where printed books are taxable at nilr ate. Therefore, the supply of textbooks and above publications of bureau is subject to nil rate. Also, the journals and periodicals (kishor), magazines issued by bureau comes under HSN code 4902. In day to day sales activities we as publisher of books deal with supply of goods i.e. textbooks and related material. In supply of service, we have rental services as well where we have rented some premises of bureau to other govt. authorities or as per the orders of govt.as received time to time. Therefore, in case of supply of services mainly we hav....
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....tion. 4. Open Book supply (Sale Books) Under this category bureau supplies books for open sale in the events and exhibitions organised by various organizations this book includes non-textbook publications and other books. In some editions content is owned by others but in most of the publications the content is owned by bureau. 5. Supply of books to Education officers of BMC The bureau has received orders from BMC office regarding supply of tamil language books for 3rd standard to 8th standard students. The Tamil books were translated from the respective translators and then printing work is executed by the bureau. 6. Supply of language books other than Bureaus publication books to Education Officers to various ZP Apart from the textbooks and curriculum the bureau frequently receives order from ZP to provide the other language books like as mentioned earlier of Tamil, Bengali or as prescribed. In this regard the only work done by bureau is printing of books and its supply as per the instructions of respective authorities. 7. Supply of books under the orders received from higher Education Department, Govt. of Maharashtra....
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....20 we have received order for printing of booklets for online admission. During 2019-20 along with Mumbai and Pune, Nashik, Aurangabad, Amaravati and Nagpur municipal corporations the admissions for class 11were handled through central online system. The information booklet for the same process of admission has been printed by Bureau on the order of Directorate of education. 2.4 Under this the bureau supplies books for open sale in the events and exhibitions organised by various organizations. These books include non-textbook publications and other books. In some editions content is owned by others but in most of the publications the content is owned by bureau. 2.5. In this scenario the bureau has received orders from education ministry for supply of one special edition. Under which the content is not owned by bureau but only the printing of books has undergone. During last 2 years we have supplied the books to education ministry under the name of "Maharaja Sayajjirao Gaikwad Khand". 2.6 In this regards the Bureau needs clarity on the taxability of all other publications apart from textbooks and curriculum. The bureau supplies the books on the basis of various orders recei....
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....t essential supply is printing service, not goods. 2.13 Uttar Pradesh AAR - Printing of Security Material (2019) Ruled that printing of security documents and specialized printed items is treated as service where content belongs to customer. Distinguished from cases where publisher owns content and sells books. 2.14 CBIC Circular No. 11/11/2017-GST (20.10.2017) Clarified that classification depends on ownership of content. - If content is supplied by customer/publisher -> printing is service (SAC 9989). If content is owned by printer/publisher -> supply is goods (HSN 4901/4902). This principle has been consistently applied in AAR decisions across States. Reply to Jurisdictional officers' submission. 2.15 On Printing of Textbooks in Other Languages / Big Books / Large Print Textbooks a. The Bureau submits that these activities constitute supply of goods, specifically textbooks, under HSN 4901, where the content is owned by the Bureau. b. In cases where the Bureau is only printing the content provided by the Government or other authorized bodies, they stated that as per Circular No. 11/11/2017-GST dated 20.10.2017, the principal supply is servic....
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....books for students, parents and teachers etc. and they pay NIL rate of GST in respect of textbooks which falls under Chapter No. 4901. 3.2 It appears that the taxpayer seeks whether supply of textbooks of any language, large printed textbooks, non-textbooks, any other books in open sale, study materials, any other publication other than textbooks and printing of online admission booklets amounts to supply of goods and services and what rate of tax. 3.3 As per submissions made by the taxpayer, it appears that recipients of supply of goods/services by the taxpayer are various Municipal Corporations, Districts Councils, Education Officers i.e. State Government or local authority or Governmental authority as work orders are granted by them; 3.4 Chapter 49 of the GST Tariff deals with "Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans"; 3.5 As per GST Tariff, for the purpose of Chapter 49, the term "printed" also means reproduced by means of a duplicating machine, produced under the control of an automatic data processing machine, embossed, photographed, photocopied, thermos-copied or typewritten. 3.6 Bookl....
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....l Rate of Central tax, without any condition. 3.14 As per Notification No. 20/2017-CT (Rate) dated 22.08.2017 (amending Notification No. 11/2017-CT(R) dated 28.06.2017), S. No. 27, Chapter/ SAC 9989 - (i) Services by way of printing of newspapers, book (including Brailee Books), journals and periodicals, where only content is supplied by the publisher and the physical inputs including paper used for printing belong to the printer @6% GST Rate of Central Tax & (ii) Other manufacturing services; publishing, printing and reproduction services; materials recovery services, other than (i) above @9% GST Rate of Central Tax was substituted. 3.15 As per Notification No. 31/2017-CT (Rate) dated 13.10.2017 (amending Notification No. 11/2017-CT(R) dated 28.06.2017), S. No. 27, Chapter/ SAC 9989 - for item (i), in columns (3), (4) and (5) and the entries relating thereto in, the following was substituted: (i) Services by way of printing of all goods falling under Chapter 48 or 49 [including newspapers, books (including Braille books), journals and periodicals], which attract CGST @ 6 per cent. or 2.5per cent. or Nil, where only content is supplied by the publisher and the physic....
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....nting, and reproduction services; materials recovery services. 18% GST 3.19 ADVANCE RULING No. KER/125/2021 Dated 31-05-2021 in case of Applicant M/s Kerala Boks and Publications Society ruled inter-alia that printing of textbooks for supply by the State Government to its allied educational institutions constitute supply as defined in Section 7 of the CGST Act, 2017. The activities constitute supply of services falling under Heading - 9989. Other manufacturing services; publishing, printing and reproduction services; material recovery services - 998912 - Printing and reproduction services of recorded media, on a fee or contract basis of the Scheme of Classification of Services under GST notified as Annexure to Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017, however, even though the said activity were to fall under the ambit of supply under GST, textbooks supplied by the applicant to the State Government is exempted from GST as per S. No. 3 of the Notification No. 12/2017-CT (R) dated 28.06.2017. 3.20 ADVANCE RULING No. KAR/ADRG/11/2020 DATED 18.03.2020 in case of Applicant M/s Department of Printing, Stationery and Publications inter-alia ruled that Printing ....
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....book production in Maharashtra. They supply the goods to Government authorities as detailed earlier. Their main supply is printing and supply of textbooks and curriculum publications where sometimes the contents are provided by the department/ authority, ordering to publish special edition books to suffice their purpose. Further, in certain situations as detailed by them, they are unable to decide taxability of the books as regards its rates and respective provisions. The issues raised by the taxpayer/ applicant can be broadly classified in following issues: • Issue No. 1: Whether printing and supply of textbooks printed in other languages, big books or large printed textbooks where the bureau does not hold any copyright for the books and the order was only for printing of books, amounts to supply of Goods and Services under the Act and tax rate applicable? • Issue No. 2: Whether printing and supply of online admission booklets on orders of Directorate of Education, amounts to supply of Goods and Services under the Act and tax rate applicable? • Issue No. 3: Whether sale/ supply of any books under open book sales or any books or study mater....
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....that the bureau does not hold any copyright for the books printed by them or the contents are not owned by them and order was only for printing of books in cases where the textbooks are in different languages, open books sale or supply of books under the name of "Maharaja Sayajjirao Gaikwad Khand". In these cases it appears that Para 4 of the Circular No. 11/11/2017-GST dated 20.10.2017 i.e. clarification on taxability of printing contracts is applicable wherein it is stated that, "where only content is supplied by the publisher or the person who owns the usage rights to the intangible inputs while the physical inputs including paper used for printing belong to the printer, supply of printing [of the content supplied by the recipient 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", which pertains to "other manufacturing services, publishing, printing and reproduction services; material recovery services @18% GST." Further, in case where the books are printed and supplied by the applicant, where the text is owned by them, such activity may amount to supply of ....
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....ports, 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 Central Goods and Services Tax Act as supply of goods or services which constitutes the predominant element of a composite supply and to which any other supply forming part of that composite supply is ancillary. 4. In the case of printing of books, pamphlets, brochures, annual reports, and the like, where only content is supplied by the publisher or the person who owns the usage rights to the intangible inputs while the physical inputs including paper used for printing belong to the printer, supply of printing [of the content supplied by the recipient 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." 5.21. Explanatory Notes for Service Accounting Code 9989 is as unde....
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....clude: - colour printing of images from film or digital media, cf. 998382 - audio and video production services, cf. 999612" 5.2.2. As per the Notification No. 11/2017 CT (R), the rate of taxes on relevant services are as under: S.No. Chapter, section or heading Description of service Rate (%) 26 Heading 9988 (Manufacturing services on physical inputs (goods) owned by others) (i) Services by way of job work in relation to - a) Printing of newspapers. d) Printing of books (including Braille books), journals and periodicals; da) Printing of all goods falling under Chapter 48 or 49, which attracts CGST @ 2.5 Per Cent or Nil ii) Services by way of any treatment or process on goods belonging to another person in relation to:- a) printing of news papers; b) printing of books (including Braille Boos), journals and periodicals. c) Printing of all goods falling under Chapter 48 or 49 which attract CGST @ 2.5 percent or Nil 2.5% 27 Heading 9989 (ii) Other manufacturing services: publishing, printing and reproduction services; material recovery services 9% 5.2.3. The rate of ta....
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.... • The pages are serially numbered and neatly bound; and • A book should have an ISBN Code 5.2.7. On analysis of the aforesaid guidelines and the legal position, the following broad viewpoint emerges: - i) If the content of the book i.e. its Intellectual property rights are with the printer/ publisher and they print the said books/pamphlets with their own paper, ink and other materials and supply's the same in the market, it would be considered as a supply of goods and classified under the respective HSN. ii) If the content of the book i.e. the intellectual property rights belong to the customer and the printer only prints the book and the inputs for printing such as paper, ink and other consumables have not been supplied by the customer, then the supply of such books by the printer to the customer would be treated as a supply of services under SAC 9989. iii) If the intellectual property of the content of the books belong to the customer and the inputs i.e. ink, paper or other consumables used for printing the said books are provided by the customer, then the service of printing of such books and articles would amount to job w....
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....der of Directorate of education. The applicant is only providing printing services while the content is supplied by the Customer. Therefore, the said supply would amount to supply of printing services and would be classifiable under SAC 9989 as supply of printing services chargeable to 18% GST. 5.3.4. Open Book supply (Sale Books) Under this category applicant supplies books for open sale in the events and exhibitions organised by various organizations this book includes non- textbook publications and other books. In some editions content is owned by others but in most of the publications the content is owned by applicant. In such cases, if the content is owned by the applicant, the supply would be treated as supply of goods and would be treated as supply of printed books and classifiable under Chapter Heading 4901 and would be exempt from payment of GST. If the content is not owned by the applicant and is supplied by the customer, the supply by the applicant would be considered as a supply of printing services and would be classifiable under SAC 9989 as supply of printing services chargeable to 18% GST. 5.3.5. Supply of books to Education officers of BMC....