No GST on supply of specified educational printed books as per instruction of Educational Dept.: AAR of Chhattisgarh

Categories: Advance Ruling
No Comments

Fact: M/s Shri Ashok Chaturvedi (“the applicant”) General Manager, Chhattisgarh Text Book Corporation, Chhattisgarh text Book Corporation is a registered society under Chhattisgarh society registration Act, 1973 which is run by Government and Non-Government officers. Chhattisgarh text book corporation has been provided with the work of publishing and distribution of books for Chhattisgarh State by the order No. F 70-72/2004/20 dated April 13, 2005 of School Education Department, Chhattisgarh.

Issues Involved: The applicant has sought advance ruling in respect of the following questions:

  1. Whether the books which the Chhattisgarh Text Book Corporation is supplying as per instruction of School Education Department CG [LoksikshanSanchnalay] after printing the Syllabus decided by the SCERT would tantamount to supply of goods or supply of Service and fall under HSN Code 4901 zero rated goods?
  2. Whether the books Which the Chhattisgarh Text Book Corporationis supplying as per instruction of School Education Department [LoksikshanSanchnalay] after printing the Syllabus decided by the SCERT would tantamount to supply of service and will fall under Services Accounting Code 9989 accordingly amenable to tax @12%?
  3. Whether the books which the Chhattisgarh Text Book Corporation is supplying as per instruction of various agencies of school Education Department CG such as Rajiv Gandhi Siksha Mission/SCERT/ office of District education officer etc. would tantamount to supply of goods and will fall under the zero rated goods?
  4. Whether the books which the Chhattisgarh Text Book Corporation is supplying as per instruction of various agencies of school Education Department CG such as Rajiv Gandhi Siksha Mission/ SCERT/office of District education officer etc. would tantamount to supply of service and will fall under Services Accounting Code 9989 accordingly amenable to tax @12%?

Applicant’s Interpretation of law: The applicant contended that the specified books are being supplied mainly to School Education Department and Rajiv Gandhi Shiksha Mission, as per their specification. He further stated that the ownership of the books supplied to School Education Department and Rajiv Gandhi Shiksha Mission remains with the applicant only. The applicant also undertakes the work of writing off the books remaining after its distribution to the School Education Department and Rajiv Gandhi Shiksha Mission for every academic and class as per their demand.

Held: The Hon’ble AAR of Chhattisgarh vide its Advance Ruling No. STC/ AAR/08/2018, Dated December 24, 2018 stated that supply of books, 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. It is to be noted that in case of composite supplies, taxability is determined by the principal supply.

Therefore, supply of specified printed educational books’by Chhattisgarh Text Book Corporation as per the instructions of School Education Department CG [LoksikshanSanchnalay] or as per instruction of various agencies of school Education Department CG such as Rajiv Gandhi Siksha Mission/SCERT/ office of District Education officer etc., which is the principal supply and accordingly we come to the considered conclusion that the said supply merits being treated as “printed books” as specified under serial no. 119 (“Printed books, including Braille books”) attracting zero rate, under notification no. 2/2017-State Tax (Rate) No. F- 10-43/2017CT/V/70, Dated June 28, 2017, under HSN 4901.

Citation: [2019] 102 taxmann.com 30 (AAR – CHHATTISGARH)