Facts: M/s. Raja Slates Pvt. Ltd. is engaged in the business of manufacturing and trading of ‘slates’, which are used by primary school students, mostly at village level, for the purpose of learning i.e. educational purpose. Further the ‘slates’ were tax free under Gujarat Value Added Tax Act and under GST Act also under Chapter 96 – Miscellaneous Manufactured Articles with HSN Code 9610 0000. The applicant further contented that he has got the order from Gujarat Council of Elementary Education Sarva Shikshan Abhiyan Mission for supply of Teachers’ Slate and Students’ Slate. Teachers’ Slate is used by teachers to explain to students, whereas the Students’ Slate is used by students for learning.
- Whether ‘Slate for Student’ and ‘Slate for Teacher’ classified under HSN Code 9610 0000.
- Whether ‘Slate for Student’ and ‘Slate for Teacher’ is Exempt or taxable under GST.
- If manufacturer received slate from unregistered supplier then what will be the liability of Applicant.
Held: The Hon’ble AAR of Gujarat vide advance ruling no. GUJ/GAAR/R/2018/12 dated July 30, 2018 stated as follows:
The products ‘Slate for Student’ and ‘Slate for Teacher’ supplied by M/s. Raja Slates Pvt. Ltd. (GSTIN 24AAACR3936K1ZB) are appropriately classifiable under Tariff Heading 96.10 i.e. Slates and boards, with writing or drawing surfaces, whether or not framed. This heading covers slates and boards, clearly designed to be used for writing or drawing with slate pencils, chalks, felt or fibre tipped markers (e.g., school children’s slates, blackboards and certain notice boards). These articles, framed or not, may be of slate, including agglomerated slate, or may consist or any material (wood, paperboard, textile material, asbestos cement, etc.) covered on one or both sides with a preparation of powdered slate or any other coating suitable for writing on, or sheeting of plastics. Boards or slates may bear permanent markings (lines, squares, lists of commodities, etc.) and may incorporate counting frames. This heading does not cover writing or drawing slates with are not ready for use (heading 25.14 or 68.03)”
The products ‘Slate for Student’ and ‘Slate for Teacher’ supplied by M/s. Raja Slates Pvt. Ltd. (GSTIN 24AAACR3936K1ZB) are eligible for exemption from payment of Goods and Services Tax vide Sl. No. 146 of Notification No. 2/2017-Central Tax (Rate) dated June 28, 2017 issued under the CGST Act, 2017 and Sl. No. 146 of Notifications No. 2/2017-State Tax (Rate) dated June 30, 2017 issued under the GGST Act, 2017.
In case of receipt of ‘manufacturing services on physical inputs (goods) owned by others’ by M/s. Raja Slates Pvt. Ltd. from the unregistered supplier of such service, the Goods and Services Tax is required to be paid by M/s. Raja Slates Pvt. Ltd. under Section 9(4) of the CGST Act, 2017 and the GGST Act, 2017, subject to exemption, if any, available.
Citation:  98 taxmann.com 125 (AAR-GUJARAT)