whether vat is applicable on sale of newspapare

No. I think Newspaper and books are exempt from Vat.

Entry 92A of List I - Union List reads :

‘Taxes on the sale and purchase of goods other than newspapers,........" 

Entry 54 of list II - State List - reads :

‘Tax on sale or purchase of goods other than newspapers except ..........." 

Newspaper specifically excluded - It can be seen that ‘newspapers’ are specifically excluded from purview of both Union as well as State list. The obvious reason is that newspapers have a very vital role to play in a democratic society. Freedom of speech and free flow of information is the backbone of democracy and hence newspapers have been excluded from tax. [Otherwise, ‘newspaper’ are ‘goods’, but for the exclusion].

I AGREE WITH ASHISH