Facts: M/s. Edutest Solutions Private Limited is engaged in business of confidential printing of educational test papers, which requires team of highly experienced and talented persons and maintenance of top secrecy, accuracy and timely delivery of the material is essential part of work. He is doing printing of educational test papers for Secondary and Higher Secondary Education Boards of various states and also at the national level and for various education institutes.
1. Whether activity of printing of question papers on behalf of educational institutions can be classified as activity of supply of goods or supply of services.
2. If it is supply of services, referring to Sr. No. 27 of Notification 11/2017-CTR dated: 28.06.2017 as amended by Notification 31/2017-CTR dated: 13.10.2017, then benefit of Sr. No. 66 of Notification 12/2017-CTR dated: 28.06.2017 is allowable, as amended by Notification No. 2/2017-CTR of 25.01.2018; or
3. If it is supply of goods, then question paper printing should be treated as exempted goods at Sr. No. 119 of exempted list liable at Nil rate of tax under Chapter heading/subheading of 4901 10 10 of “Printed books including Braille books”, or
It should be covered by Schedule I at Sr. No. 201 liable to tax at 2.5% under “Brochures, leaflets and similar printed matter, whether or not in single sheets”
Held: The AAR of Gujarat vide Advance Ruling No. GUJ/GAAR/R/2018/16 dated August 23, 2018 stated as follows:
1. The activity of printing of question papers on behalf of educational institutions by Applicant is activity of supply of service classifiable under heading 9989 of the scheme of classification of services.
2. The service provided by Applicant to educational institutions by way of printing of question papers for conduct of examination by such institutions would be covered by Sr. No. 66 of Notification No. 12/2017-Central Tax (Rate), as amended and Notification No. 12/2017-State Tax (Rate), as amended.
The service provided by Applicant service recipients other than educational institutions by way of printing of question papers would be covered by Sr. No. 27(i) of Notification No.11/2017- Central Tax (Rate), as amended, and Notification No. 11/2017-State Tax (Rate), as amended.
3. As the activity of printing of question papers by Applicant is held to be activity of supply of service, the question of appropriate classification as ‘goods’ and applicable rate on such ‘goods’ does not arise.
Citation:  98 taxmann.com 9 (AAR-GUJARAT)