In re Manupatra Information Solutions Private Limited (GST AAR Uttar Pradesh)
We find that the nil rate of tax is applicable only on supply of online educational journals or periodicals under si. No. 66(b)(v) of the notification no. 12/2017-Central Tax (Rate) dated 28th June 2017 as amended and the said entry does not cover supply of E-books, Newspapers, directories and non-educational journals or periodicals.
We find that the invoices issued by the applicant to different educational institutions (as detailed in Para 8 above) have mention of description ‘Annual Subscription Online Database’ and the same have no mention of “online educational journals or periodicals”. As such, the applicant is collecting a subscription fee which is nothing but the fee charged to gain access to the data available in the database and to download the articles or information. The said invoices are not in respect of supply of online educational journals or periodicals.
We proceed to examine the terms database, journal and periodical. The dictionary meaning of the aforesaid terms are as under-
(1) As per Cambridge dictionary, database is large amount of information stored in a computer system in such a way that it can be easily looked at or changed.
(2) As per Britannica.com, database, is any collection of data, or information, that is specially organized for rapid search and retrieval by a computer.
(3) As per Cambridge dictionary, journal is a serious magazine or newspaper that is published regularly about a particular subject.
(4) As per Collinsdictonary.com, a journal is a magazine, especially one that deals with a specialized subject.
(5) As per Cambridge dictionary, periodical is a magazine or newspaper, especially on a serious subject, that is published regularly.
(6) As per Collinsdictonary.com, periodicals are magazines, especially serious or academic ones, that are published at regular intervals.
In our considered view, Database and journals or periodicals are different thing and exemption is not available to online database, online books, newspapers, directories and non-educational journals under si. No. 66(b)(v) of the notification no. 12/2017-Central Tax (Rate) dated 28th June 2017.
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING, UTTAR PRADESH
1. M/s Manupatra Information Solutions Private Limited, B-37, Sector-1, Noida, Gautam Budh Nagar-201301 (here in after referred to as the applicant) is a registered assessee under GST having GSTN 09AACCM5884H1Z2.
2. The applicant has filed application for advance ruling in Form ARA-01 and submitted as under-
(1) they are engaged in providing online text based information such as online books, newspapers, periodicals, directories etc (judgements/Notifications/Bare Acts/Rules/E books/News/Articles) through their website www.manupatra.com to law firms, lawyers, companies, government, judiciary, law schools.
(2) their services come under SAC code 997331 and the applicable rate of GST is 18%.
(3) As per notification no. 12/2017-Central Tax (Rate) dated 28th June 2017 further amended by notification no. 02/2018-Central Tax (Rate) dated 25th January 2018, against Serial number 66;
Services provided –
(b) to an educational institution, by way of,-
“(v) supply of online educational journals or periodicals:”;
is taxed at NIL rate.
(4) This has created confusion as some law schools are insisting that GST is not applicable to them on account of the above Notification as amended.
3. The applicant has sought advance ruling on following questions-
As per notification no. 12/2017-Central Tax (Rate) dated 28th June 2017 further amended by notification no. 02/2018-Central Tax (Rate) dated 25th January 2018, against Serial number 66;
Services provided –
(b) to an educational institution, by way of-
“(y) supply of online educational journals or periodicals:
is taxed at NIL rate.
This has created confusion as some law schools are insisting that GST is not applicable to them on account of the above Notification as amended.
We would like to know if our services referred above are covered by the above amendment. If the answer is in the affirmative, do we charge GST at NIL rate ?
4. The applicant have submitted that as per their interpretation, on-line text based information such as online books, newspapers, periodicals, directories (judgments/Notifications /Bare Acts/Rules/E books /News/ Articles etc. ) through their website www.manupatra.com should be taxed @ 18%. However, their competitors in similar line of business are charging NIL rate of tax on identical services.
5. As per declaration given by the applicant in Form ARA-01, the issue raised by the applicant is neither pending nor decided in any proceedings under any of the provisions of the Act, against the applicant.
6. The application for advance ruling was forwarded to the Jurisdictional GST Officer to offer their comments/views/verification report on the matter. The Additional Commissioner, Commercial Taxes, Gautam Budh Nagar Zone, Noida vide his letter C.No 1182/Adi. Comm. Va. Ka. Gau. Bu. Na. Zone Noida/2021-22 dated nil submitted that-
(1) the applicant have obtained registration for the following-
(a) Description of Goods- Printed Books, Brochures, Leaflets and similar printed matter, dies, Tapes, Solid state Non-Volatile storage Devices etc
(b) Description of services- On-line text based information such as online books, newspapers, periodicals, directories etc
(2) the applicant have obtained registration for services ‘On-line text based information such as online books, newspapers, periodicals, directories and the applicant are providing the said services only which are not covered in the entry 66(b)(v) of notification no. 12/2017-Central Tax (Rate) dated 28th June 2017 as amended by Notification No. 02/2018-Central Tax (Rate) dated 25.01.2018.
(3) the applicant are not supplying online educational journals or periodicals as such the said supply is not nil rated and chargeable to 18%.
(4) no proceedings are pending against the applicant in respect of question on which advance ruling has been sought.
7. The applicant was granted a personal hearing on 11.11.2021 which was attended by Shri Deepak Kapoor, Director and Shri Vijay Singh Negi, Accounts Manager during which they reiterated the submissions made in the application of advance ruling.
8. The applicant vide email dated 16.11.2021 provided copies of following invoices issued by them-
