The Authority of Advance Ruling, Karnataka has ruled that, the printed textbooks, classifiable under HSN Code 4901, supplied to resellers are cover under Entry No. 119 of Notification No. 02/2017 – Central Tax (Rate) dated 28.06.2017 and are exempted from the payment of CGST and SGST.
The first question related to the supply of printed textbooks for the PUC Board. In this context, the applicant states that the Karnataka State Pre-University Board floated a tender for the printing of textbooks and the applicant participated in the tender and became the successful bidder. The PUC Board supplies the content on a DVD/CD which is copyright protected for which royalty is paid by the applicant. The materials, namely, the paper, board, manpower, Inks, Chemicals and machinery all belong to the applicant. The printing is carried out strictly adhering to the standards, quality, design, syllabus and content stipulated in the tender. The printing is done on a job work basis and once the printing is done, the textbooks are supplied to various authorized resellers of the textbooks across the State. The applicant contends that the activity performed by him is printing and supply of printed books to various resellers in the State. The activity of printing and supply of the textbooks is covered under Notification 2/2017- Central Tax (Rate) under entry No.119 reads as “Printed Books, including Braille Books.” and is exempt from the payment of CGST.
The second question relates to printing and binding of brochures, books, calendars, pamphlets, on job work basis. The applicant states that he undertakes printing of various items on the basis of content supplied by Government Authorities and other paper is also supplied by the recipient. The ink, plates, machines, manpower all belong to the applicant.
The Authority observed that, applicant participated in the tender called by the PUC board for printing and supply of textbooks and applicant obtained the job of printing and supply of textbooks. The PUC Board supplies the content of the textbook on a DID/CD. The content is copyright protected for which royalty is paid by the applicant whereas other materials, namely, the paper, board, manpower, Inks, chemicals and machinery used in the printing belongs to the applicant. The applicant printed the PUC textbooks and supplied to the various resellers in the state. This activity of printing and supply of the textbooks to the resellers by the applicant is covered under Notification 2/2017-Central Tax (Rate) dated 28/06/2017 under entry No.119 reads as “Printed Books, including Braille Books.” This is exempt from the payment of CGST and SGST.
The AAR also observed that, “The printing and binding of brochures, printed books and pamphlets, on a job work basis attracts 2.5% COST and 2.5% SGST under clause (ii) of entry no.26 of Notification No.11/2017 – Central Tax (Rate) dated 28.06.2017 as amended by Notification No. 20/2017 – Central Tax (Rate) dated 22.08.2017 whereas printing and binding of calendars attracts 6% CGST and 6% SGST under clause (iia) of Entry No. 26 of Notification No.11/2017 – Central Tax (Rate) dated 28.06.2017 as amended by Notification No. 31/2017 – Central Tax (Rate) dated 13.10.2017”.
“The binding of Diary, Catalogues and Books carried out on job work basis attracts CGST @ 9% and SGST @ 9% under clause (iii) of Entry no. 26 of Notification No.11/2017 – Central Tax (Rate) dated 28.06.2017 as amended by Notification No.31/2017 – Central Tax (Rate) dated 13.10.2017”.
“The printing of textbooks and workbooks and supplied back to State Government across the state attracts CGST @ 6% and SGST @ 6% under clause (i) of entry no.27 of Notification No.11/2017 – Central Tax (Rate) dated 28.06.2017 as amended by Notification No.31/2017 -Central Tax (Rate) dated 13.10.2017”.
“The printing and supply of periodicals and magazines to the Government Departments attracts CGST @ 6% and SGST @ 6% under clause (i) of entry no.27 of Notification No.11/2017 – Central Tax (Rate) dated 28.06.2017 as amended by Notification No.31/2017 -Central Tax (Rate) dated 13.10.2017”, the AAR also added.
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