The Authority for Advance Ruling (AAR), Gujarat has held that the activity of printing of question papers is a service which would attract 12 per cent Goods and Services Tax (GST). However, the authority clarified that the said service would not attract tax when the same is supplied to an educational institution.
The applicant, Edutest Solutions Private Ltd, has contended before the authority that the said activity, being provided to an educational institution for conducting exam, attract Nil rate of tax under the GST regime. They further contended that the activity is of secret/ confidential nature and if it is not exempted, the disclosure of customer details in the tax invoice would result in the violation of the agreement between the customers. It was further contended that the product can be treated as ‘printed books’ for which no GST is payable.
After hearing arguments from both the sides, the AAR held that the supply, in this case, would constitute the supply of service falling under heading 9989 of the schemes of classification of services and it is taxable at 12 per cent.
It was held that “Therefore, services provided by the applicant to educational institutions by way of printing of question papers for the conduct of examination by such institutions would be covered by Sr. No. 66 of Notification No. 12/2012-Central Tax (Rate), as amended.”
“As defined in clause (y) of Paragraph 2 of Notification No. 12/2017-Central Tax (Rate) ‘educational institution’ means an institution providing services by way of education (pre-school education and education up to higher secondary school or equivalent, education as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force, or education as a part of an approved vocational education course). The benefit of Sr. No. 66 of Notification No. 12/2012-Central Tax (Rate) is admissible only in a case where service is provided to an educational institution,” the authority said.
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