WB AAR Clarifies GST Exemption on Question Paper Printing for Examinations: Order Dt.13 September 2023

WB AAR Clarifies GST Exemption on Question Paper Printing

In a significant ruling, the West Bengal Authority for Advance Ruling (AAR) has clarified that Goods and Services Tax (GST) does not apply to services involving the printing of question papers for educational institutions. This decision comes in response to an application from Saraswaty Press Limited, a printing company that specializes in printing question papers for educational institutions.

The Applicant’s Query

Saraswaty Press Limited sought clarification from the AAR regarding the tax liability related to their service of printing question papers for educational institutions. They wanted to know if the printing of question papers for conducting examinations in educational institutions qualifies for GST exemption, as outlined in Sl. No. 66 of the Notification No. 12/2017-Central Tax (Rate) and its subsequent amendments.

The applicant had been providing question paper printing services to various universities across different states, including both central and state government levels. They had been charging GST on the invoices for these services. However, one of their clients, Jharkhand University of Technology, believed that these services were exempt from GST under Notification No.12/2017-Central Tax (Rate) dated 28.06.2017, as amended through Notification No. 2/2018 – Central Tax (Rate) dated 25.01.2018. This client requested a refund of the integrated tax charged by the applicant for their services.

The Decision

The WB AAR considered the argument presented by the applicant and referred to entry number 66 in Notification No. 12/2017(CTR). Additionally, they took into account the clarification provided in Circular No. 151/07/2021-GST Dt.17.06.2021 by the Tax Research Unit, Department of Revenue, Ministry of Finance, GOI. This clarification stated that input services, such as printing question papers and admit cards for universities, are not subject to GST. As a result, universities are not required to pay GST on these input services necessary for conducting examinations.

The Authority Bench, consisting of Members Dr. Tanisha Datta and Joyjit Banik, concluded that the services provided by the applicant, involving the printing of question papers for exams, fall under the purview of serial number 66 of Notification No. 12/2017-Central Tax (Rate) and the corresponding West Bengal State Notification No. 1136 FT, both dated Junes 28, 2017, as revised. Therefore, the printing of question papers for educational institutions is exempt from GST.

Conclusion

This ruling by the West Bengal AAR provides much-needed clarity for printing companies like Saraswaty Press Limited and educational institutions regarding the applicability of GST on question paper printing services. It confirms that such services are indeed exempt from GST, in line with the relevant notifications and circulars. As a result, both service providers and educational institutions can benefit from this exemption and avoid the burden of GST on these essential services.

Applicant’s Name: Saraswaty Press Ltd; Case No: WB AAR 17/2023

To Read the Entry No.66 in GST Notification No.12/2017 CLICK HERE

To Access the GST Circular No. 151/07/2021 Dt. 17.06.2021 CLICK HERE

To Access the GST Notification No.2/2018 (CTR) Dt. 25.01.2018 CLICK HERE

To Access the CBDT Notification No.89/2023 Dt. 16 October 2023 CLICK HERE

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