GST payable on Online Database, Online Books, Newspapers, Directories & Non-Educational Journals: AAR [Read Order]

The Uttar Pradesh Authority of Advance Ruling has held that GST payable on online databases, online books, newspapers, directories & non-educational journals.

The applicant, Manupatra Information Solutions Private Limited has been engaged in providing online text based information such as online books, newspapers, periodicals, directories etc (judgements/Notifications/Bare Acts/Rules/E books/News/Articles) through their website www.manupatra.com to law firms, lawyers, companies, government, judiciary, law schools.

The applicant has sought the advance ruling on the As per notification no. 12/2017-Central Tax (Rate) dated 28th June 2017 further amended by notification no. 02/2018-Central Tax (Rate) dated 25th January 2018, against Serial number 66; Services provided – (b) to an educational institution, by way of- “(y) supply of online educational journals or periodicals: is taxed at NIL rate. This has created confusion as some law schools are insisting that GST is not applicable to them on account of the above Notification as amended. We would like to know if our services referred above are covered by the above amendment. If the answer is in the affirmative, do we charge GST at NIL rate.

The coram of Vivek Arya and Abhishek Chauhan has ruled that Database and journals or periodicals are different thing and exemption is not available to online database, online books, newspapers, directories and non-educational journals under si. No. 66(b)(v) of the notification no. 12/2017-Central Tax (Rate) dated 28th June 2017.

“We find that the invoices issued by the applicant to different educational institutions (as detailed in Para 8 above) have mention of description ‘Annual Subscription Online Database’ and the same have no mention of “online educational journals or periodicals”. As such, the applicant is collecting a subscription fee which is nothing but the fee charged to gain access to the data available in the database and to download the articles or information. The said invoices are not in respect of supply of online educational journals or periodicals,” the AAR said.

To Read the full text of the Order CLICK HERE

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