WB AAR: Question Paper Printing Services to Institutions for Written Examinations Are Exempt from GST

The West Bengal Authority for Advance Ruling (AAR) has made a significant ruling stating that Goods and Services Tax (GST) does not apply to the services involving the printing of question papers for educational institutions.

The applicant, Saraswaty Press Limited, operates in the printing business, which includes the printing of question papers specifically for educational institutions.

The applicant approached the AAR seeking clarification on the tax liability related to the service of printing question papers for educational institutions.

The applicant requested clarification regarding whether the printing of question papers to conduct examinations in educational institutions qualifies for exemption from GST, as outlined in Sl. No. 66 of the Notification No. 12/2017-Central Tax (Rate) including amendments.

The applicant has been providing question paper printing services to various universities across different states, both at the central and state government levels, and has been charging GST on the invoices raised for these services.

The applicant mentioned that one of their clients, Jharkhand University of Technology, believes that the services provided by the applicant for printing question papers for examinations are exempted from tax payment, citing the Notification No.12/2017-Central Tax (Rate) dated 28.06.2017, as amended through Notification No. 2/2018 – Central Tax (Rate) dated 25.01.2018.

Consequently, the aforementioned client requested a refund of the integrated tax charged by the applicant for the supply of such services, as indicated in their letter reference number: 507-1015/2023/1040 dated 31/5/2023.

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The petitioner urged not to impose the GST in the subsequent bills or invoices towards the services provided for the above-said objective. Additionally, a reimbursement of Rs. 12,90,814/-, which was paid as GST via the University towards the services associated with printing question papers, has been requested.

It was argued that as per entry number 66 in the aforesaid Notification and the following clarification furnished in Circular No. 151/07/2021-GST on 17.06.2021 via the Tax Research Unit, Department of Revenue, Ministry of Finance, Government of India, the provision of input services, like printing question papers and admit cards for the university, does not levy to taxation. Therefore, the university is not obligated to remit GST for these input services required for conducting examinations.

The Authority Bench, comprising of Members Dr Tanisha Datta and Joyjit Banik, concluded that the supply of services of printing of questions for exams provided by the applicant to various universities falls under the purview of serial number 66 of Notification No. 12/2017- Central Tax (Rate) dated June 28, 2017/West Bengal State Notification No. 1136 FT on June 28, 2017, as revised.

Consequently, the Authority determined that the printing of question papers for educational institutions falls under the purview of Serial Number 66 of the aforementioned notification and is exempt from GST.