Whether printing of any books, study material or any other publications other than textbooks amounts to supply of services or goods or both under the GST Act? – In re: Maharashtra State Bureau of Textbook Production & Curriculum Research – Maharashtra AAR (GST)

In re: Maharashtra State Bureau of Textbook Production & Curriculum Research, (2026) taxcode.in 65 AARGST

PROCEEDINGS

(Under Section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017)

The present application has been filed under Section 97 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as “the CGST Act and MGST Act” respectively] by M/s. Maharashtra State Bureau of Textbook Production & Curriculum Research, the applicant, seeking an advance ruling in respect of the following questions.

1. Whether the printing of Tamil, Bengali textbooks amounts to the supply of goods or services or both under the GST Act? If yes then at what tax rate?

2. Whether the supply of Big books or large printed textbooks amounts to supply of goods under the GST Act? If yes then at what tax rate?

3. Whether the printing of Online Admission booklet results in supply of goods or services or both under the GST Act? If yes then at what tax rate?

4. Whether the sale of books under Open Book sale amounts to supply of goods or services under the GST Act? If yes then at what tax rate?

5. Whether the supply of any books under the orders received from Education Ministry on specific edition other than textbooks results in supply of goods or services or both under the GST Act? If yes then at what tax rate?

6. Whether printing of any books, study material or any other publications other than textbooks amounts to supply of services or goods or both under the GST Act? If yes then at what tax rate?

At the outset, we would like to make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to any dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, the expression ‘GST Act’ would mean CGST Act and MGST Act.

1.1. Establishment of Bureau-

• The Kothari Commission in 1964 recommended that the state government establish an autonomous institution run on business lines for textbook production.

• Accordingly, on 27th January 1967, the Maharashtra State Bureau of Textbook production & Curriculum Research’ was established.

1.2. Management of Bureau-

• The school education minister is the ex-officio chairman of the bureau.

• The minister of state is the ex-officio deputy chairman.

• The official whose post is on par with that of the director of education is the bureau’s director.

• The board of governors has the highest authority as regards the bureau’s management.

• The academic council, council for textbook production and distribution, the curriculum and textbook research council, finance committee and executive committee helps the board of governors.

1.3. Board of Governors: Official Members

• Minister for School Education, Maharashtra State -President

• State Minister for School Education, Maharashtra State -Vice President

• Upper Chief Secretary, Department of School Education, Maharashtra State (Indian Administrative Service) – Member

• Commissioner, School Education Department, Maharashtra State (Indian Administrative Service) – Member

• Director of Education (Secondary and Higher Secondary) Maharashtra State- Member

• Director of Education (Primary Education) Maharashtra State – Member

• Deputy Director / Regional Manager, Govt. Printing & Stationery – Member

• Chairman, Maharashtra State Board of Secondary and Higher Secondary Education – Member

• Director, Maharashtra State Council for Educational Research and Training – Member

• Chairman, Maharashtra Universities Book Production Board – Member

• Controller, Maharashtra State Bureau of Textbook Production and Curriculum Research

• Director, Maharashtra State Bureau of Textbook Production and Curriculum Research – Member secretory

The following Non-Official Members can be nominated to the Board of Governors

• One Representative of District Councils – Member

• One Representative of Primary School Teachers – Member

• One Representative of Secondary School Teachers- Member

• Three leading Experts in the field of School Education and Textbook Production – Member

1.4. Objectives-

• To prepare textbooks for all the primary schools in Maharashtra (Classes I to XI)

• To print and distribute textbooks of all subjects for all the primary, secondary and higher secondary schools in Maharashtra.

• To prepare other instructional materials for schools in Maharashtra including teachers’ handbooks, teachers’ editions, dictionaries other work book, practical books and supplementary books.

• To make available quality material at a low price.

• To undertake improving the materials. Educational research for curriculum and instructional

• Providing assistance and inspiration for the proliferation of school education.

• Arranging for the printing, publishing, storage, distribution and sales of textbooks and educational material.

• To aid and promote advancement of education in general and of primary and secondary education in particular;

• To produce school textbooks, (1st to 8th std. in 10 languages, 9th & 10th in 8 languages, for 11th & 12th in 2 languages) hand-books for teachers, work-books, Practical Note book, supplementary books, Dictionary, General and periodicals (Kishor Magazine), Text book for specially abled student (Partially blind) integrated and bilingual textbooks and open books for std. 5th, 8th and 10th class also publishing a non-textual book for pupils and other educational literature useful for furtherance of teaching or learning in educational institutions;

• To encourage and procure expert authors having knowledge and experience of modern methods of education to write in different language textbooks on various subjects suited to the requirements of the curricula and syllabi prescribed by Government or other appropriate authority in that behalf for various courses of education and to apply for and obtain the approval or sanction of Government or other appropriate authority thereto;

• To print, publish, stock, distribute and sell or enter into any arrangement for printing, publishing, stocking, distribution and sale of textbooks approved, sanctioned or assigned by Government or other appropriate authority and any other publications which the Bureau may decide to publish, with a view to making the same available at a fair and reasonable price;

• To develop curricula on the basis of research and recommend them to Government and other appropriate authorities for adoption;

1.5. Nature of business entity-

• The bureau was registered under the ‘Societies Registration Act, 1960’ and ‘Public Trust Act 1950’.

• The bureau’s nature is that of an independent, autonomous body having a monopoly over textbook production.

1.6. Administrative Structure-

• The head office of Bureau is at Pune. Controller’s office is at Mumbai.

• Regional Depots are at Goregaon (Mumbai), Panvel, Pune, Kolhapur, Nashik, Nagpur, Aurangabad, Latur and Amravati.

• Day-to-day work of the bureau is carried out by various departments such as academic, production, finance, administrative, distribution, law, internal audit, civil research, computer, library, ‘Kishor’, etc.

1.7. Scope of Work-

• Production of textbooks for std. I to XII th standards for all schools affiliated to the State Education Department.

• Production of supporting Educational material for std. 1st to 12th.

1.8. Our Publications-

• Textbooks

• Teachers Handbook

• Work Books

• Practical notebooks

• Dictionary

• Supplementary books–

• Journal &periodicals (Kishor)

• Integrated and Bilingual textbooks.

• textbooks for especially abled students.

• Open board books for V, VIII & X std. students.

• Non textual books for students, parents & teachers.

Textbooks fall under Chapter No.49 HSN code 4901 CGST Act 2017, where printed books are taxable at nilrate. Therefore, the supply of textbooks and above publications of bureau is subject to nil rate. Also, the journals and periodicals (kishor), magazines issued by bureau comes under HSN code 4902. In day to day sales activities we as publisher of books deal with supply of goods i.e. textbooks and related material.

In supply of service, we have rental services as well where we have rented some premises of bureau to other govt. authorities or as per the orders of govt.as received time to time. Therefore, in case of supply of services mainly we have following services incomes.

1. Rental income.

2. Application fees.

3. Sale of application form.

4. Copyright fees.

5. Sale of any scrap.

6. Guesthouse charges received from non – members.

7. Educational DVD sales.

1.9. There are certain situations where they receive orders from Government authorities to publish some special editions and books to suffice their purpose. In this process the bureau only, involves in the printing and distribution of those editions and special books and the content is provided by the respective department or authority. Under these circumstances they are not able to decide the taxability of such books. Again, there are following books and publications on which it is difficult to understand the correct GST rates and applicability of respective provisions.

1. Bengali books supply

In last few years bureau has supplied books for Bengali languages as per the orders received from Education Officer ZP Gondia & Gadchiroli. In the order bureau has been asked to supply the books for 2nd and 3rd standard in Bengali Medium. But the bureau does not hold any copyright for those books and the order was only for printing of books. Accordingly, the books have been printed and sent to the respective locations. In this regard they had paid tax on under Job work @5% for printing of books.

2. Big book sale (Books for especially abled students)

Similarly, the bureau receives order for supply of big books which contains large print for the partially blind students of class I to VIII studying in government schools of local bodies and aided schools in the state. As per the requirements, the respective authority places orders through online portal of balbharti. In 2019 they received order from Chief Secretary of Department of School education and sports. These books are part of textbooks which contains large prints on content.

3. Online Admission booklet supply

In the year 2020 they received order for printing of booklets for online admission. During 2019-20 along with Mumbai and Pune, Nashik, Aurangabad, Amaravati and Nagpur municipal corporations the admissions for class 11 were handled through central online system. The information booklet for the same process of admission has been printed by Bureau on the order of Directorate of education.

4. Open Book supply (Sale Books)

Under this category bureau supplies books for open sale in the events and exhibitions organised by various organizations this book includes non-textbook publications and other books. In some editions content is owned by others but in most of the publications the content is owned by bureau.

5. Supply of books to Education officers of BMC

The bureau has received orders from BMC office regarding supply of tamil language books for 3rd standard to 8th standard students. The Tamil books were translated from the respective translators and then printing work is executed by the bureau.

6. Supply of language books other than Bureaus publication books to Education Officers to various ZP

Apart from the textbooks and curriculum the bureau frequently receives order from ZP to provide the other language books like as mentioned earlier of Tamil, Bengali or as prescribed. In this regard the only work done by bureau is printing of books and its supply as per the instructions of respective authorities.

7. Supply of books under the orders received from higher Education Department, Govt. of Maharashtra on specific edition

In this scenario, bureau has received orders from higher education Department govt. of Maharashtra for supply of one special edition under which the content was only printed by the bureau but, is not owned by bureau. During last 2 years they have supplied the books to higher education ministry of Government Maharashtra under the name of “Maharaja Sayajirao Gaikwad charitra Khand”.

1.10. After considering all the types of supply by bureau they feel that there is no clarity regarding the taxability of such events, the nature of supply and the value of supply. The main supply of bureau is textbooks and curriculums publications but the other publication which is not a part of textbooks is also used as an additional reading material for enhancing the reading ability of students, also it is part of historical references from where the students would easily get the required data for their study. Therefore, this supply may also consider under nil rated. Few books contain the motivational sources and practical training knowledge which is core area of curriculum hence it should be covered under NIL rated supply.

2. STATEMENT CONTAINING APPLICANT’S INTERPRETATION OF LAW

2.1. In last few years bureau has supplied books for Tamil and Bengali languages as per the orders received from Education Officer ZP Gondia & Gadchiroli. In the order bureau has been asked to supply the books for 2nd and 3rdstandard in Bengali Medium. But the bureau does not hold any copyright for those books and the order was only for printing of books. Accordingly, the books have been printed and sent to the respective locations. In this regard we have paid tax on under Job work @5% for printing of books. But it is not clear to us as these books falls under textbooks. The sample copies of orders received by Bureau is attached with this application.

2.2. Similarly, the bureau receives order for supply of big books which contains large int for the partially blind s students of class I to VIII studying in government schools of local bodies and aided schools in the state. As per the requirements the respective authority places orders through online portal of balbharti. In 2019 we have received order from Chief Secretary of Department of School education and sports. These books are part of textbooks which contains the large prints on content.

2.3. In the year 2020 we have received order for printing of booklets for online admission. During 2019-20 along with Mumbai and Pune, Nashik, Aurangabad, Amaravati and Nagpur municipal corporations the admissions for class 11were handled through central online system. The information booklet for the same process of admission has been printed by Bureau on the order of Directorate of education.

2.4. Under this the bureau supplies books for open sale in the events and exhibitions organised by various organizations. These books include non-textbook publications and other books. In some editions content is owned by others but in most of the publications the content is owned by bureau.

2.5.. In this scenario the bureau has received orders from education ministry for supply of one special edition. Under which the content is not owned by bureau but only the printing of books has undergone. During last 2 years we have supplied the books to education ministry under the name of “Maharaja Sayajjirao Gaikwad Khand”.

2.6. In this regards the Bureau needs clarity on the taxability of all other publications apart from textbooks and curriculum. The bureau supplies the books on the basis of various orders received by different government departments and authorities, in such orders most of the time the matter and text of the books is provided by them and also the copyright of such contents is not with Bureau. This is the little different scenario where bureau prints the received content in the directed number of copies and send them by adding 15 % portion on total value of order for administration charges. Therefore, it is not clear to us to implement the GST taxation here. As these publications are for enhancing the students learning and reading abilities. Hence, we are in belief that this is also part of curriculum.

2.7. After considering all the types of supply by bureau mentioned above there is no clarity on our part regarding the taxability of such events, the nature of supply and the value of supply. The main supply of bureau is textbooks and curriculums publications. But the other publication which is not a part of textbooks is also used as additional reading material for enhancing the reading ability of students, also it is part of historical references from where the students would easily get the required data for their study. Therefore, this supply may also consider under nil rated. Few books contain the motivational sources and practical training knowledge which is core area of curriculum hence it should be covered under NIL rated supply.

2.9. The relevant Advance Ruling decisions across India concerning the classification of printing of books, textbooks, and other printed material under the GST regime.

2.10. Karnataka AAR – Sukhee Print Pack LLP (2019)

Held that printing of content supplied by the customer is a supply of service under HSN 9989. Ownership of content rests with customer/publisher, hence printing activity is classified as service. GST applicable @ 12%/18% depending on the nature of printed product.

2.11. West Bengal AAR – Swapna Printing Works Pvt. Ltd. (2018)

Considered supply of printed textbooks to educational council. Ruled that printing where content is supplied by Council is a service under SAC 9989, taxable. Where textbooks are supplied as finished goods (owned content), exemption under Entry 119 (Notification 2/2017-CT (Rate)) applies.

2.12. Gujarat AAR – Printing of Question Papers (2018)

Held that printing of question papers as per content supplied by education boards is a service under SAC 9989. Emphasized that essential supply is printing service, not goods.

2.13. Uttar Pradesh AAR – Printing of Security Material (2019)

Ruled that printing of security documents and specialized printed items is treated as service where content belongs to customer. Distinguished from cases where publisher owns content and sells books.

2.14. CBIC Circular No. 11/11/2017-GST (20.10.2017)

Clarified that classification depends on ownership of content. – If content is supplied by customer/publisher -> printing is service (SAC 9989).

If content is owned by printer/publisher -> supply is goods (HSN 4901/4902).

This principle has been consistently applied in AAR decisions across States.

Reply to Jurisdictional officers’ submission.

2.15. On Printing of Textbooks in Other Languages / Big Books / Large Print Textbooks

a. The Bureau submits that these activities constitute supply of goods, specifically textbooks, under HSN 4901, where the content is owned by the Bureau.

b. In cases where the Bureau is only printing the content provided by the Government or other authorized bodies, they stated that as per Circular No.11/11/2017-GST dated 20.10.2017, the principal supply is service (printing), falling under Heading 9989 – Other manufacturing services; publishing, printing and reproduction services; material recovery services.

c. Therefore, the Bureau requested the AAR to clarify that taxability depends on ownership of content:

• Content owned by Bureau -> Supply of goods, nil-rated under HSN 4901.

• Content provided by others -> Supply of services, 18% GST under Heading 9989.

2.16. On Printing of Online Admission Booklets

• The Bureau respectfully submits that printing of online admission booklets is performed on “behalf of Government authorities, and the content, layout, and information are provided by the Directorate of Education.

• In such cases, the physical inputs are supplied by the Bureau, while the intellectual property/content belongs to the Government. Accordingly, the principal supply is printing service falling under Heading 9989, and any applicable GST rate should be as per notification on printing services.

2.17. On Open Book Sales and Non-Textbook Publications

a. The Bureau submits that:

• Publications where the content is owned by the Bureau are textbooks or educational materials and hence qualify as supply of goods under HSN 4901, nil rated.

• Publications where content is owned by others are printed on behalf of the content owner, and the principal supply is service under Heading 9989, 18% GST.

b. This distinction ensures that GST is levied only where applicable, in line with the provisions of Section 7 of the CGST Act, 2017 and relevant notifications.

2.18. On Payment of GST under Job Work @5%

a. The Bureau respectfully submits that Job Work is claimed only where the physical inputs are provided by the content owner. In certain instances, we have inadvertently applied GST @5% under Job Work.

b They requested that the ruling clarify that GST under Job Work is applicable only when physical inputs (paper, ink, etc.) are supplied by another registered person, as per Section 2(68) of the CGST Act, 2017.

3. CONTENTION – AS PER THE CONCERNED OFFICER:

3.1. The taxpayer supplies textbooks, teachers’ handbooks, workbook, practical notebooks, dictionary, supplementary books, journals and practical (Kishor), integrated and bilingual textbooks, textbooks for specially-abled students, non-textual books for students, parents and teachers etc. and they pay NIL rate of GST in respect of textbooks which falls under Chapter No.4901.

3.2. It appears that the taxpayer seeks whether supply of textbooks of any language, large printed textbooks, non-textbooks, any other books in open sale, study materials, any other publication other than textbooks and printing of online admission booklets amounts to supply of goods and services and what rate of tax.

3.3. As per submissions made by the taxpayer, it appears that recipients of supply of goods/services by the taxpayer are various Municipal Corporations, Districts Councils, Education Officers i.e. State Government or local authority or Governmental authority as work orders are granted by them;

3.4. Chapter 49 of the GST Tariff deals with “Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans”;

3.5. As per GST Tariff, for the purpose of Chapter 49, the term “printed” also means reproduced by means of a duplicating machine, produced under the control of an automatic data processing machine, embossed, photographed, photocopied, thermos-copied or typewritten.

3.6. Booklets – Printed Aptitude Test Booklets being printed material of educational nature, are classifiable under Heading 4901 of CTA, 1975 [Affirmed by Hon’ble Supreme Court in 1997(90) ELT A66(SC)].

3.7. Reference Manuals/ Installations and User Guides – Textual matter conveying valuable information or material to reader is classifiable as printed books under Heading 4901 of CTA, 1975 – [Collector vs. Tata Elxi India Ltd. – 1995(78) ELT 370 (Tribunal)]

3.8. As per “THE PRESS AND REGISTRATION OF BOOKS ACT, 1867”, “Book” includes every volume, part or division of a volume, and pamphlet, in any language and every sheet of music, map, chart or plan separately printed

3.9. The term “Book” in general trade parlance is known by features like

• A book has an author;

• A book has a publisher;

• A book is a priced publication;

• A book is available to all and sundry who pay for it:

• A book has a subject to deal with;

• The pages are serially numbered and neatly bound; and

• A book should have an ISBN Code

3.10. As per Notification No.01/2017-CT (Rate) dated 28.06.2017, S.No.201, Chapter Heading/Tariff Item No.4901 – Brochures, leaflets and similar printed matter, whether or not in single sheets, appear in Schedule-1 i.e. 2.5% Central Tax.

3.11. As per Notification No.02/2017-CT (Rate) dated 28.06.2017, S.No.119, Chapter Heading/Tariff Item No.4901 – Printed Books, including Braille books, are exempt from whole of Central Tax.

3.12. As per Notification No.11/2017-CT (Rate) dated 28.06.2017, S.No.27, Chapter / SAC 9989 – Other manufacturing services; publishing, printing and reproduction services; materials recovery services are levied at 9% GST Rate of Central Tax, without any condition.

3.13. As per Notification No.12/2017-CT (Rate) dated 28.06.2017, S.No.3, Chapter/ SAC No. 99- Pure services (excluding works contract service or other composite supplies involving supply of any goods) provided to the Central Government, State Government or Union territory or local authority or a Governmental authority by way of any activity in relation to any function entrusted to a Panchayat under article 243G (11th Schedule) of the Constitution or in relation to any function entrusted to a Municipality under article 243W (12th Schedule) of the Constitution, are exempted at Nil Rate of Central tax, without any condition.

3.14. As per Notification No.20/2017-CT (Rate) dated 22.08.2017 (amending Notification No.11/2017 – CT(R) dated 28.06.2017), S.No.27, Chapter/ SAC 9989 – (i) Services by way of printing of newspapers, book (including Brailee Books), journals and periodicals, where only content is supplied by the publisher and the physical inputs including paper used for printing belong to the printer @6% GST Rate of Central Tax & (ii) Other manufacturing services; publishing, printing and reproduction services; materials recovery services, other than (i) above @9% GST Rate of Central Tax was substituted.

3.15. As per Notification No.31/2017-CT (Rate) dated 13.10.2017 (amending Notification No.11/2017 – CT(R) dated 28.06.2017), S.No.27, Chapter/ SAC 9989 – for item (i), in columns (3), (4) and (5) and the entries relating thereto in, the following was substituted:

(i) Services by way of printing of all goods falling under Chapter 48 or 49 [including newspapers, books (including Braille books), journals and periodicals], which attract CGST @ 6 per cent. or 2.5per cent. or Nil, where only content is supplied by the publisher and the physical inputs including paper used for printing belong to the printer @ 6% GST Rate of Central Tax

3.16. As per Notification No.02/2021-CT (Rate) dated 30.09.2021 (amending Notification No.11/2017 – CT(R) dated 28.06.2017), S.No.27, Chapter/ SAC 9989 – item (i) was omitted; & item (ii) was reverted as it was in Notification No.11/2017-CT (R);

3.17. As per GST Tariff, not all printed goods are taxed at the same rate.

3.18. As per GST Tariff on Services

3.19. ADVANCE RULING No. KER/125/2021 Dated 31-05-2021 in case of Applicant M/s Kerala Boks and Publications Society ruled inter-alia that printing of textbooks for supply by the State Government to its allied educational institutions constitute supply as defined in Section 7 of the CGST Act, 2017. The activities constitute supply of services falling under Heading – 9989. Other manufacturing services; publishing, printing and reproduction services; material recovery services – 998912 – Printing and reproduction services of recorded media, on a fee or contract basis of the Scheme of Classification of Services under GST notified as Annexure to Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017, However, even though the said activity were to fall under the ambit of supply under GST, textbooks supplied by the applicant to the State Government is exempted from GST as per S.No.3 of the Notification No.12/2017-CT (R) dated 28.06.2017.

3.20. ADVANCE RULING No. KAR/ADRG/11/2020 DATED 18.03.2020 in case of Applicant M/s Department of Printing, Stationery and Publications inter-alia ruled that Printing and supply of textbooks and printed materials to government departments not registered under GST Act are exempt as the supply does not qualify as supply under Section 7 of the CGST Act, 2017; however, if the Government Departments are registered under the GST Act the supply is taxable @12% GST, as the service will be covered under S.No.27 of the Notification No.11/2017-CT(R) dated 28.06.2017.

3.21. As per Circular No.11/11/2017-GST dated 20.10.20217, clarifying taxability of printing contracts, inter-alia clarified that supply of books, pamphlets, brochures, envelopes, annual reports, leaflets, cartons, boxes etc. printed with logo, design, name, address or other contents supplied by the recipient of such printed goods, are composite supplies and the question, whether such supplies constitute supply of goods or services would be determined on the basis of what constitutes the principal supply (defined under Section 2(90) of the Act);

3.22. Section 2(90) of the Act states that “Principal supply” means supply of goods or services which constitutes the predominant element of a composite supply and to which any other supply forming part of that composite supply is ancillary.

3.23. In the case of printing of books, pamphlets, brochures, annual reports, and the like, where only content is supplied by the publisher or the person who owns the usage rights to the intangible inputs while the physical inputs including paper used for printing belong to the printer, supply of printing [of the content supplied by the recipient of supply] is the principal supply and therefore such supplies would constitute supply of service falling under heading 9989 of the scheme of classification of services;

3.24. In case of supply of printed envelopes, letter cards, printed boxes, tissues, napkins, wall paper etc. falling under Chapter 48 or 49, printed with design, logo etc. supplied by the recipient of goods but made using physical inputs including paper belonging to the printer, predominant supply is that of goods and the supply of printing of the content [supplied by the recipient of supply] is ancillary to the principal supply of goods and therefore such supplies would constitute supply of goods falling under respective headings of Chapter 48 or 49 of the Customs Tariff.

3.25. M/s Balbharti is a trust and is an independent, autonomous body having a menopoly over textbook production in Maharashtra. They supply the goods to Government authorities as detailed earlier. Their main supply is printing and supply of textbooks and curriculum publications where sometimes the contents are provided by the department/ authority, ordering to publish special edition books to suffice their purpose. Further, in certain situations as detailed by them, they are unable to decide taxability of the books as regards its rates and respective provisions.

The issues raised by the taxpayer/ applicant can be broadly classified in following issues:

• Issue No.1: Whether printing and supply of textbooks printed in other languages, big books or large printed textbooks where the bureau does not hold any copyright for the books and the order was only for printing of books, amounts to supply of Goods and Services under the Act and tax rate applicable?

• Issue No.2: Whether printing and supply of online admission booklets on orders of Directorate of Education, amounts to supply of Goods and Services under the Act and tax rate applicable?

• Issue No.3: Whether sale/ supply of any books under open book sales or any books or study materials or special edition other than text books, where in some editions content is owned by others but in most of the publications the content is owned by bureau, result in supply of Goods and Services under the Act and tax rate applicable?

3.26. The taxable event in GST is supply of goods or services or both. The term ‘supply’ has been inclusively defined in Section 7 of the CGST Act and accordingly any transaction involving goods and / or services made for a consideration in the course of furtherance of business will come under scope and meaning of supply unless listed in Schedule-III. As per facts stated in the application, it appears that the activities undertaken by the applicant falls within the scope and meaning of supply.

3.27. The applicant is a trust and is also engaged in printing of textbooks in different languages, other books, admission booklets etc. for the state government and the contents are either owned by them or given by others for printing purpose only.

3.28. There is no specific exemption available that the activities performed by the applicant come neither as supply of goods nor as supply of services. As per submissions made by the applicant nothing is coming on record that they are a government authority or a government entity as defined in Notification No.12/2017-CT(R) dated 28.06.2017. Further, the exemption at S.No.3 of the notification is in respect of specified services provided to a Govt. Authority or entity.

3.29. As per applicant’s submission, it appears they have paid GST under Job Work @5% for printing of textbooks of Tamil and Bengali languages as per orders from Education Officer ZP Gondia & Gadchiroli, where copyright is not with the applicant. It appears that the applicant is not eligible to pay GST on Job work as nothing has come on record or submitted by the applicant that they have been supplied with printing paper, printing ink, content for printing or related raw materials for printing of books. As per Section 2(68). “Job Work” means any treatment or process undertaken by a person on goods belonging to another registered person and the expression “job worker” shall be construed accordingly. Therefore, it appears that the applicant is not liable/ eligible to pay GST @5% on such services under S.No.26. Heading 9988(i)(d) of NotificationNo.11/2017-CT(R).

3.30. The taxpayer in its submissions has submitted that the bureau does not hold any copyright for the books printed by them or the contents are not owned by them and order was only for printing of books in cases where the textbooks are in different languages, open books sale or supply of books under the name of “Maharaja Sayajjirao Gaikwad Khand”. In these cases it appears that Para 4 of the Circular No.11/11/2017-GST dated 20.10.2017 i.e. clarification on taxability of printing contracts is applicable wherein it is stated that, “where only content is supplied by the publisher or the person who owns the usage rights to the intangible inputs while the physical inputs including paper used for printing belong to the printer, supply of printing [of the content supplied by the recipient of supply] is the principal supply and therefore such supplies would constitute supply of service falling under heading 9989 of the scheme of classification of services”, which pertains to “other manufacturing services, publishing, printing and reproduction services; material recovery services @18% GST.” 

Further, in case where the books are printed and supplied by the applicant, where the text is owned by them, such activity may amount to supply of textbooks / goods under HSN 4901 and would attract Nil rate of tax

3.31. Therefore, it appears that all the activities undertaken by the applicant constitutes supply as defined in Section 7 of the CGST Act, 2017. Further, the activities undertaken by the applicant for which the applicant is not the owner of the content would constitute supply of services falling under Heading 9989 – other manufacturing services, publishing, printing and reproduction services; material recovery services, of scheme of classification services under GST notified as annexure to Notification No.11/2017-CT (R) dated 28.06.2017 (as amended vide Notification No.20/2017-CT (R) dated 22.08.2017, Notification No.31/2017-CT (R) dated 13.10.2017 & Notification No.02/2021-CT (R) dated 30.09.2021) and liable to GST rate of 18%, and the activity of printing and supply of textbooks where the text is owned (or is copyright) by the applicant may constitute supply of goods under HSN 4901 and would attract exemption under Notification No.02/2017-СT (R) dated 28.06.2017.

4. HEARING

Preliminary e-hearing in the matter was held on 24.05.2022. The Authorized representative of the applicant, Ms. Hema Jadhav, C.A., was present. The Jurisdictional officer Mr. Shailendra Nath, Superintendent of CGST was present. The Authorized Representatives made oral submission with respect to admission of their application.

The application was admitted and called for final hearing on 01.10.2025. Ms. Hema Jadhav, C.A., authorized representative appeared made oral and written submissions. The Jurisdictional Officer Mr. Suvakant Pradhan, Assistant Commissioner of CGST was appeared. We heard both the sides.

5. OBSERVATIONS AND FINDINGS:

5.1. We have gone through the records of the case and the submissions made by the applicant and the jurisdictional officer. We find that the issue involved is about the classification and rate of tax in the case of supply of books by the applicant. Before we delve into the specifics of the questions raised by the applicant, it would be necessary to lay down the guidelines issued by the CBIC on the said issue and the relevant Notifications relevant to the facts of this case.

5.2. In this regard, Circular No.11/11/2017 dated 20.10.2017 states as under:

“2. In the above context, it is clarified that supply of books, pamphlets, brochures, envelopes, annual reports, leaflets, cartons, boxes etc. printed with logo, design, name, address or other contents supplied by the recipient of such printed goods, are composite supplies and the question, whether such supplies constitute supply of goods or services would be determined on the basis of what constitutes the principal supply.

3. Principal supply has been defined in Section 2(90) of the Central Goods and Services Tax Act as supply of goods or services which constitutes the predominant element of a composite supply and to which any other supply forming part of that composite supply is ancillary.

4. In the case of printing of books, pamphlets, brochures, annual reports, and the like, where only content is supplied by the publisher or the person who owns the usage rights to the intangible inputs while the physical inputs including paper used for printing belong to the printer, supply of printing [of the content supplied by the recipient of supply] is the principal supply and therefore such supplies would constitute supply of service falling under heading 9989 of the scheme of classification of services.”

5.2.1. Explanatory Notes for Service Accounting Code 9989 is as under: –

“9989 Other manufacturing services; publishing, printing and reproduction services; materials recovery services

99891 Publishing, printing and reproduction services

This group includes transfer of intangible inputs, rather than physical inputs, when outsourcing (parts or all) of the production process. The units providing the service do not own or retain usage rights to the intangible inputs. This includes publishing of printed matter, software, etc. on a fee of contract basis.

998911 Publishing, on a fee or contract basis

This service code includes publishing, on a fee or contract basis, of printed matter, software etc.

998912 Printing and reproduction services of recorded media, on a fee or contract basis

This service code includes newspaper and book printing services, printing services directly onto plastic, glass, metal, wood or ceramics and other printing services n.e.c. This also includes services as

i. those related to bookbinding, folding, assembling, stitching, gluing, collating, basting, adhesive-binding, trimming, gold stamping services;

ii. other book finishing services such as folding, cutting, stamping, drilling, punching, perforating, embossing, sticking, gluing and laminating;

iii. services of processing matrices, films, bromide prints or electronic data in order to generate original texts to be reproduced (composition, photo composition, plate-making);

iv. services combining text and image techniques for making a reproducible original; production services of other reprographic products such as overhead projection foils, sketches, layouts, dummies;

v. preparation services of digital data, e.g., enhancement, selection, linkage of digital data stored on EDP data carriers; other graphic service activities related to printing; rebinding services

This service code also includes

i. reproduction services from master copies of gramophone records, compact discs and tapes with music or other sound recordings;

ii. reproduction services from master copies of videotapes, laser discs, DVD or other media with motion pictures and other video recordings;

iii. reproduction services from master copies of software and data on all kind of disks, tapes, cartridges and other media

This service code does not include:

– colour printing of images from film or digital media, cf. 998382

– audio and video production services, cf. 999612”

5.2.2. As per the Notification No.11/2017 CT (R), the rate of taxes on relevant services are as under:

5.2.3. The rate of tax on supply of relevant goods falling under Chapter 48 and 49 including printed books as per Notification 1/2017 CT (R) dated 28.6.2017 is as under: –

Goods chargeable to 2.5% CGST as per Schedule I

 

Goods chargeable to 6% CGST as per Schedule II

5.2.4. The Notification No.2/2017 CT (R) dated 28.6.2017 exempts certain goods including printed books and news papers from GST as under:-

Further with effect from 22.9.2025, Exercise book, graph book and laboratory note book and note books have also been exempted from GST as per S.No.130 of the Notification 10/2025 CT (R) dated 17.9.2025.

5.2.5. As per Section 2(68) of the CGST Act, 2017, the word ‘job work’ means any treatment or process undertaken by a person on goods belonging to another registered person and the expression ‘job worker’ shall be construed accordingly.

5.2.6. The term Printed Book has not been defined under the CGST Act, 2017. However, certain case laws have covered the meaning of printed books as textual matter conveying valuable information or material to reader is classifiable as printed books under Heading 4901 of CTA, 1975 – [Collector vs. Tata Elxi India Ltd. – 1995(78) ELT 370 (Tribunal)]

As per “THE PRESS AND REGISTRATION OF BOOKS ACT, 1867”, “Book” includes every volume, part or division of a volume, and pamphlet, in any language and every sheet of music, map, chart or plan separately printed The term “Book” in general trade parlance is known by features like

• A book has an author;

• A book has a publisher;

• A book is a priced publication;

• A book is available to all and sundry who pay for it:

• A book has a subject to deal with;

• The pages are serially numbered and neatly bound; and

• A book should have an ISBN Code

5.2.7. On analysis of the aforesaid guidelines and the legal position, the following broad viewpoint emerges: –

i) If the content of the book i.e. its Intelluctual property rights are with the printer/publisher and they print the said books/pamphlets with their own paper, ink and other materials and supply’s the same in the market, it would be considered as a supply of goods and classified under the respective HSN.

ii) If the content of the book i.e. the intellectual property rights belong to the customer and the printer only prints the book and the inputs for printing such as paper, ink and other consumables have not been supplied by the customer, then the supply of such books by the printer to the customer would be treated as a supply of services under SAC 9989.

iii) If the intellectual property of the content of the books belong to the customer and the inputs i.e. ink, paper or other consumables used for printing the said books are provided by the customer, then the service of printing of such books and articles would amount to job work and would be classifiable under SAC 9988.

5.3. Keeping in view the above broad categories under which the printing services provided by the applicant falls, we now proceed to analyse each service and determine its classification and taxability.

5.3.1. Bengali and Tamil books supply

Applicant has supplied books for Bengali languages as per the orders received from Education Officer ZP Gondia & Gadchiroli. In the order Applicant has been asked to supply the books for 2nd and 3rd standard in Bengali Medium. But the applicant does not hold any copyright for those books and the order was only for printing of books. Accordingly, the books have been printed and sent to the respective locations. Since the applicant is only providing printing services and they do not hold the copyrights of the said books, the supply has to be treated as supply of services and is classifiable under SAC 9989 as supply of printing services, chargeable to 18% GST.

5.3.2. Big book sale (Books for especially abled students)

The applicant receives order for supply of big books which contains large print for the partially blind students of class I to VIII studying in government schools of local bodies and aided schools in the state. As per the requirements, the respective authority places orders through online portal of Balbharti. In this context, as per the data available on record, it is not clear whether the content is owned by the applicant and the books are also printed by the applicant. If the content is owned by the applicant, the supply of said books will be treated as supply of goods and would be classifiable under HSN 4901 as printed books and would be exempted from payment of GST. If the content is not owned by the applicant and is supplied by the customer, the supply by the applicant would be considered as a supply of printing services and would be classifiable under SAC 9989 as supply of printing services chargeable to 18% GST

5.3.3. Online Admission booklet supply

In the year 2020 they received order for printing of booklets for online admission. During 2019-20 along with Mumbai and Pune, Nashik, Aurangabad, Amaravati and Nagpur municipal corporations the admissions for class 11 were handled through central online system. The information booklet for the same process of admission has been printed by Applicant on the order of Directorate of education. The applicant is only providing printing services while the content is supplied by the Customer. Therefore, the said supply would amount to supply of printing services and would be classifiable under SAC 9989 as supply of printing services chargeable to 18% GST.

5.3.4. Open Book supply (Sale Books)

Under this category applicant supplies books for open sale in the events and exhibitions organised by various organizations this book includes non-textbook publications and other books. In some editions content is owned by others but in most of the publications the content is owned by applicant. In such cases, if the content is owned by the applicant, the supply would be treated as supply of goods and would be treated as supply of printed books and classifiable under Chapter Heading 4901 and would be exempt from payment of GST. If the content is not owned by the applicant and is supplied by the customer, the supply by the applicant would be considered as a supply of printing services and would be classifiable under SAC 9989 as supply of printing services chargeable to 18% GST.

5.3.5. Supply of books to Education officers of BMC

The applicant has received orders from BMC office regarding supply of tamil language books for 3rd standard to 8th standard students. The Tamil books were translated from the respective translators and then printing work is executed by the bureau. Such a supply would be treated as supply of goods and such supply of printed books would be classified under HSN 4901 and would be exempt from payment of GST.

5.3.6. Supply of language books other than bureaus publication books to Education Officers to various ZP

Apart from the textbooks and curriculum the applicant receives order from ZP to provide the other language books like as mentioned earlier of Tamil, Bengali or as prescribed. In this regard the only work done by applicant is printing of books and its supply as per the instructions of respective authorities. Since the content is not owned by the applicant and is provided by the customer the supply of such printed books would amount to a supply of printing services and would be classifiable under SAC 9989 as supply of printing services chargeable to 18% GST.

5.3.7. Supply of books under the orders received from higher Education Department, Govt. of Maharashtra on specific edition.

In this scenario, applicant has received orders from higher education Department govt. of Maharashtra for supply of one special edition under which the content was only printed by the applicant but, is not owned by applicant. During last 2 years they have supplied the books to higher education ministry of Government Maharashtra under the name of “Maharaja Sayajirao Gaikwad charitra Khand”. Since the content is not owned by the applicant and is supplied by the customer, the supply of such printed books would amount to a supply of printing services and would be classifiable under SAC 9989 as supply of printing services chargeable to 18% GST.

6. In view of the extensive deliberations as held hereinabove, we pass an order as follows:

ORDER

(Under Section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017)

For reasons as discussed in the body of the order, the questions are answered thus –

NO.GST-ARA-74/2021-22/B-37

Mumbai, dt. 27/02/2026

Question 1: Whether the printing of Tamil, Bengali textbooks amounts to the supply of goods or services or both under the GST Act? If yes, then at what tax rate?

Answer: – The supply will be treated as supply of services under SAC 9989 and chargable to tax @ 18%.

Question 2: Whether the supply of big books or large printed textbooks amounts to supply of goods under the GST Act? If yes, then at what tax rate?

Answer:- If the content is owned by the applicant, the supply will be treated as supply of goods and charged to Nil rate of duty as such supply is exempted under Notification 2/2017 CT (R) dated 28.6.2017. If the content is provided by the customer, the supply will be treated as supply of services under SAC 9989 and chargable to GST @ 18%.

Question 3: Whether the printing of Online Admission booklet results in supply of goods or services or both under the GST Act? If yes, then at what tax rate?

Answer:- The supply will be treated as supply of services under SAC 9989 and chargeable to GST @ 18%.

Question 4: Whether the sale of books under Open Book sale amounts to supply of goods or services under the GST Act? If yes, then at what tax rate?

Answer: – If the content is owned by the applicant, the supply would be treated as supply of goods and charged to Nil rate of duty as such supply is exempted under Notification 2/2017 CT (R) dated 28.6.2017. If the content is provided by the customer, the supply will be treated as supply of services under SAC 9989 and chargable to GST @ 18%.

Question 5: Whether the supply of any books under the orders received from Education Ministry on specific edition other than textbooks results in supply of goods or services or both under the GST Act? If yes, then at what tax rate?

Answer: – Since the content is not owned by the applicant and is supplied by the Customer, the supply of such printed books would amount to supply of printing services under SAC 9989 and chargeable to GST @ 18%.

Question 6: Whether printing of any books, study material or any other publications other than textbooks amounts to supply of services or goods or both under the GST Act? If yes, then at what tax rate?

Answer: – Since the content is not owned by the applicant and is supplied by the Customer, the supply of such printed books would amount to supply of printing services under SAC 9989 and chargeable to GST @ 18%.

DIPAK GOJAMGUNDE
(MEMBER)

HIMANI DHAMIJA
(MEMBER)

PLACE – Mumbai
DATE 27/02/2026