ORIENT PRESS LTD. 2019 (26) G.S.T.L. 369 (A.A.R.

PJ/Case Law/2019-2020/3539

ORIENT PRESS LTD. 2019 (26) G.S.T.L. 369 (A.A.R. - GST)

Case:ORIENT PRESS LTD.
Citation:2019 (26) G.S.T.L. 369 (A.A.R. - GST)
Issue:1.Whethersupply of service of:
(i)Printing of Pre-examination items like question papers, OMR sheets etc
(ii)Printing of Post-examination items like marks card, grade card, and certificates to the educational boards of up to higher secondary is treated as exempt supply?

2.Classification and the GST rate, for the supply of services in the nature of printing of Railway Tickets where (i) the physical inputs of paper belongs to the applicant; and (ii) the physical inputs of paper belongs to the Railways?

3.Classification and the GST rate, for the supply of services in the nature of printing of cheques for their clients (i) the physical inputs of paper belongs to the applicant; and (ii) the physical inputs of paper belongs to the concerned Banks?

Brief Facts:The applicant is engaged in the business of providing the services of printing of security documents to various clients like Government Authorities and agencies, Banks, Educational Boards/Institutions and Private Companies.
Respondent’s contention and judgment:
Issue No.1: Questionpapers, OMR sheets,answer booklets are very essential and necessary requirements to conduct any examination.
The officer has submitted that conduct of any examination by an educational institute includes both pre-examination works, actual conduct of the exams and post-examination works. It was held that such supply is a supply of services and classifiable under Heading 9992 and will be exempted from payment of GST vide Entry No. 66 of the Notification No. 12/2017-Central Tax (Rate), dated 28th June, 2017 as amended.
Issue no.2:According to applicant’s submissions the product that is generated from their activities is ‘Railway Tickets’ and not ‘Railway Paper’ and thus exempted under GST.
The officer has submitted that a railway ticket is something which accrues its meaning as ticket only when it is sold by railway or its authorized representative. Hence the service provided by applicant is towards printing services and it cannot be exempted. The product which is supplied by the applicant to the Railways will fall under 4907 00 90 i.e. ‘Other’ and will be attracted to GST @ 12%.
In a situation where the applicant does printing for Railway Tickets and uses physical input i.e. paper supplied by the Railways then the same will be considered as a supply of printing services. This scenario will attract the services under Heading 9988(iia) which attracts CGST@6%.
Issue no.3:In a situation where the applicant does printing of cheques and uses their own physical input i.e. paper, in such a case it is very clear that the case is covered under Heading 9989(i) of Notification No. 11/2017-Central Tax (Rate), dated 28th June, 2017 as amended and is taxable at 2.5%CGST.
In a situation where the applicant does printing of cheques where physical input i.e. paper is supplied by the client, and then the same will also be considered as a supply of printing services. This scenario will attract the services under Heading 9988(ii) (c) and is taxable at 6%CGST.

Decision: Partly in favor of assesse.

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PJ/Case Law/2019-2020/3539

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