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Advance Ruling
Advance Ruling for Services of Printing of Question Papers given to Educational Institute Exempt, AND Services for Priniting of question papers given to others are taxable at 12%
February 17, 2020
Maxwell Co (P) Ltd, In Re (2020) 113 taxmann.com 527 AAR Uttar Pradesh
Applicant has filed an application for classification and taxability of printing of question papers under GST
Taxability:-
As per Notification No 12/2017 Central Tax Rate (Point No 66) following services are exempt (As per exemption SAC Code is 9992)
Services provided -
(a) by an educational institution to its students, faculty and staff;
(b) to an educational institution, by way of:-
(i) transportation of students, faculty and staff;
(ii) catering, including any mid-day meals scheme sponsored by the Central Government, State Government or Union territory;
(iii) security or cleaning or house-keeping services performed in such educational institution;
(iv) Services relating to admission to, or conduct of examination by, such institution upto higher secondary
Provided that nothing contained in entry (b) shall apply to an educational institution other than an institution providing services by way of pre-school education and education up to higher secondary school or equivalent
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An amendment has been made by notification number 02/2018 central tax rate dated 25/01/2018 and the same has been produced for your reference.
Amendment has been highlighted in Green and Red part has been stricked off as the same has been deleted w.e.f 25/01/2018 Notification No 02/2018
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, -
(i) transportation of students, faculty and staff; (ii) catering, including any mid-day meals scheme sponsored by the Central Government, State Government or Union territory; (iii) security or cleaning or house-keeping services performed in such educational institution;
(iv) services relating to admission to, or conduct of examination by, such institution upto higher secondary
(v) supply of online educational journals or periodicals
Provided that nothing contained in [sub-items (i), (ii) and (iii) of item (b)] shall apply to an educational institution other than an institution providing services by way of pre-school education and education up to higher secondary school or equivalent.
Provided further that nothing contained in sub-item (v) of item (b) shall apply to an institution providing services by way of,-
(i) pre-school education and education up to higher secondary school or equivalent; or
(ii) education as a part of an approved vocational education course.
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Now after considering the amendments:-
(a),(aa), b(iv) are exempted from GST For all educational institutions.
(b)(i)(ii)(iii) are exempted from GST for educational institutions upto 12th class only.
b(v) is exempted from GST for educational institution upto 12th class and approved vocational course.
So present status is admission or examination papers printing is exempt for all educational institutions
Educational Institution has not been defined in section 2 of the act.
However as per clarification prepared by National Academy of Customs, Indirect Taxes and Narcotics
Educational Institution means an institution providing services 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 recognised by any law for the time being in force
(iii) Education as a part of an approved vocational education course
Notification No. 12/2017- Central Tax (Rate) dated 28th June, 2017, defines approved vocational education course as under:
An “approved vocational education course” means, -
(i) A course run by an industrial training institute or an industrial training centre affiliated to the National Council for Vocational Training or State Council for Vocational Training offering courses in designated trades notified under the Apprentices Act, 1961 (52 of 1961); or
(ii) A Modular Employable Skill Course, approved by the National Council of Vocational Training, run by a person registered with the Directorate General of Training, Ministry of Skill Development and Entrepreneurship
AAR JUDGEMENT ON TAXABILITY:-
In case the services of printing of question papers are given to educational institution which includes institute providing
pre-school education and
education upto higher secondary school or equivalent,
education as a part of curriculum for obtaining a qualification recognised by any law for time being in force or
education as a part of approved vocation course
then such services are exempt from GST.
However if services of printing of question paper are provided by the applicant to other than educational institutions GST will be applicable.
Classification:-
SAC 9992
Other Education and Training Services and educational Support Services GST Rate is 18%
SAC 9989
Publishing, Printing and Reproduction Services. GST Rate is 12% |
AAR Judgement on Classification:-
Authority of Advance ruling observed that applicant is undertaking printing of examination paper for 10th and 12th class as well as state universities.
The content of printed matter is specific to the customer and the applicant doesn't have any ownership on the content at any point of time.
The question papers are not the property of the applicant (Publisher) , hence title of the papers can't be transferred. Those printed papers are not marketable in the open market and are the property of those educational institute.
As the usage right of the material of question papers are owned by the education boards and physical inputs used for printing belongs to the applicant, printing of question papers constitutes supply of service classified under heading 9989.
RG Comments:-
A comparative sheet has been prepared by us for the readers.
| Particulars | Upto 12th Class i.e. Higher Secondary | Approved Vocational Course | Other Educational Institution | Other Than educational institution |
| Services Provided by Educational Institution (i.e. fees has been received by Institutes for these cases) | ||||
| (a) To Students, Faculty, Staff | Exempt | Exempt | Exempt | Taxable |
| (b) for Conduct of Entrance Examination and entrance fees has been received | Exempt | Exempt | Exempt | Taxable |
| Service provided to an educational institution i.e. institution makes payment for these expenses | ||||
| (a) transportation of students, faculty and staff | Exempt | Taxable | Taxable | Taxable |
| (b) catering, including any mid-day meals scheme sponsored by the Central Government, State Government or Union territory; | Exempt | Taxable | Taxable | Taxable |
| © security or cleaning or house-keeping services performed in such educational institution; | Exempt | Taxable | Taxable | Taxable |
| (d) services relating to admission to, or conduct of examination by, such institution | Exempt | Exempt Since it is also an educational institution | Exempt Since it is also an educational institution | Taxable |
