GST: Printing and Supply of Notebook is Supply of Goods, says AAR [Read Order]

The West Bengal bench of the Authority for Advance Ruling ( AAR ) observed that printing and supply of notebook was supply of goods The issue to be decided was whether printing and supply of notebooks would be considered as supply of goods or the same would be treated as supply of services The applicant Swapna Printing Works Pvt Ltd was stated to be engaged in the business of printing books and other items. The applicant submitted that Jharkhand Council of Educational Research and Training, Ranchi ( JCERT ) has awarded contracts to him for printing and supply of textbooks under State Plan for academic session 2023- 24 on the basis of content provided by the JCERT, printing and supply of Atlas, Dictionary, Grammar and General Knowledge Book. It was submitted that the applicant will have temporary copyright over the content of the text books against consideration to be paid in the form of royalty. The applicant has also received contracts for printing and supply of Notebooks under School Kit Scheme of the State Government for 2023-24 and printing and supply of Bilingual Parental Calendar from Jharkhand Education Project Council. Another contract for printing and supply of Pupils Comprehensive Report Progress Card has been awarded to the applicant by the Office of the Mission Director, Axom Sarba Siksha Abhiyan Mission, Assam. The applicant engaged in the supply of student calendars and notebooks. Regarding notebooks supplied to the Jharkhand government, they were essential components of JCERT's curriculum, directly benefiting students, and featuring designs and logos endorsed by the Jharkhand government. Regarding notebooks supplied to the Assam government, they were akin to those provided to JCERT, serving as integral parts of the Assam government's curriculum and offering direct benefits to students. Additionally, these notebooks prominently featured designs and logos approved by the Assam Government. Notably, the phrase "Not for Sale" was clearly indicated on these notebooks, emphasizing that they were exclusively intended for student use and not for commercial distribution in the general market. According to the agreement between the applicant and JCERT, the applicant has acquired the temporary copyright over the content of the books. By virtue of the copyright, the applicant shall be authorized to print and supply books meant for Free Distribution ( that will be purchased by JCERT under the contract ). Further, in case of excess sale of books, additional amount of royalty will be deposited by the applicant The applicant has relied on the judgment of the Supreme Court in the case of Tata Consultancy Service v. State of Andhra Pradesh, ( 2005 ) 1 SCC 308 wherein it was held that once the copyrighted material, is put on an physical media such as books, floppies, CDs, etc., it acquires the nature of goods and transfer of such goods, amount to sale of goods inviting sales tax. The bench observed that the applicant has submitted that JCERT has awarded a contract to him for printing and supply of textbooks under State Plan for academic session 2023-24. As per the agreement between the applicant and the JCERT, there will be a temporary transfer of copyright of the content by JCERT for which royalty was to be paid by the applicant. The bench observed that the applicant, being engaged in printing of books, supplies such books to JCERT on his own account. Printing of books using the inputs purchased by the applicant and subsequent delivery of the same as involved in the instant case cannot be treated as supply of services on the ground that the applicant, for the stipulated period under the contract, also holds the copyright of the contents of the books. Therefore the instant supply was to be treated as a supply of goods being "printed books". The two member bench of the tribunal comprising Dr Tanisha Dutta ( member ) and Joy Jit Banik ( member ) concluded that Printing and supply of notebook would be treated as supply of goods Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates

GST: Printing and Supply of Notebook is Supply of Goods, says AAR [Read Order]

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