Telangana AAR has held that printing of examination materials, including pre-examination and post-examination items, is exempt from GST when provided to educational institutions.
The applicant M/s. V.S. Hitech Security Forms Private Limited, is engaged in the business of printing of Security printing products like, barcoded OMR answer booklets, OMR sheets, Certificates, Marks Memos.
The applicant M/s. V.S.Hitech Security Forms Private Limited is classified as a private limited company and is located in Rangareddy, Telangana State, they provide printing services to various educational institutions based on their requirements using the paper and ink of the applicant. That the products are designed and printed as per the requirements of particular customer
The issue raised was whether printing of Pre-Examination items like question papers, OMR sheets (optical Mark Reading), answer booklets and post examination items for conducting of an examination by the educational boards be treated as exempted supply of service.
The AAR noted that the Central Board of Indirect Taxes and Customs (CBIC) issued Circular No. 151/07/2021-GST dated 17.06.2021. This circular explicitly states that GST is exempt on input services related to the admission and conduct of examinations when provided to educational institutions. These input services include printing services, among others.
The AAR held that the exemption is in line with the government’s efforts to support the education sector. Businesses engaged in providing printing services for examination materials can avail of this exemption and classify their services under HSN Code 9989.