The Authority for Advance Rulings (AAR), Punjab has held that the lab manuals prescribed by the Education Boards attract GST at “nil rate” under the provisions of the Central GST Act, 2017.
The applicant, M/s Evergreen Publications(India)Ltd, has sought for clarification as towhether the Lab manuals generally for class 6th to 12th printed by the printing/publishing industry as prescribed by education boards & written by the author(s), is a tax-free product falling under heading 4901 attracting nil duty?
A bench of Mr. Navdeep Bhinder (State Member) and Mr. G S Bains (Central Member) observed that the Lab Manuals being published by the applicant are rightly classifiable under the GST Tariff heading 4901 as ‘printed books’ and would consequently carry Nil rate of tax which is presently applicable to the said heading.
“In the present case, the Lab Manuals not only contain ‘some texts’ but a rather large part of these Manuals consists of instructional I educational text which would clearly make these Lab Manuals eligible for classification under tariff heading 4901. It may be noteworthy that though the Circulars mentioned above are in the context of classification under the erstwhile Central Excise Tariff Act, 1985, the ratio of these Circulars would be equally applicable to classification under the GST Tariff as chapter 48 and 49 are based on the same lines in both these Tariffs. In view of the above discussions and findings, we reach the conclusion that the Lab Manual being published by the applicant which comprises bulk of instructional /educational printed material as per syllabus of Educational Board and which also contains some blank pages for the students to practice or write, would be classified under GST Tariff heading 4901 as printed books which currently carry a Nil rate of tax,” the bench observed.
In concluding the order, the AAR bench held that “Accordingly we pronounce the following Advance Ruling under section 98(4) of the CGST Act, 2017 and section 98(4) of the Punjab GST Act, 2017 to the question raised by the applicant: The Lab Manual being published by the applicant which comprises of a bulk of instructional /educational printed material as per syllabus of educational board and which also contains some blank pages for the students to practice or write, would be classified under GST Tariff heading 4901 as printed books which currently carry a Nil rate of tax.”
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