Printing photographs from media service deemed taxable at 12% under GST Act

The ruling determined that the applicant's activity of printing photographs from media is classified under SAC 9989 as a service, taxable at 12% under specific notifications of the Central Tax (Rate) as amended. The ruling remains valid unless declared void under the provisions of the GST Act.

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Issues:
1. Nature and classification of the activity - supply of goods or service under HSN 4911 or SAC 9989.

Analysis:
1. The applicant sought an Advance Ruling to determine whether their activity of printing content supplied by customers on photographic paper is classified as the supply of goods or service under HSN 4911 or SAC 9989. The ruling was sought under section 97(2)(a) of the CGST/WBGST Act, 2017. The application was admitted as there were no objections raised by the concerned officer.

2. The process involves customers providing digital content, which is then printed on photographic paper using specific equipment like Fuji Frontier Digital Minilab or Durst Theta 76 HS Digital Printer. The content is transferred from electronic devices to printed material as per customer requirements.

3. The classification under Heading 4911 of the Custom Tariff Act pertains to printed matter like pictures, photographs, trade advertising material, and more. However, in this case, the content is customer-specific, not pre-printed, and the applicant has no ownership of the content. As the printed material has no value as independent goods and is specific to individual customers, it does not qualify as goods under Heading 4911.

4. Various judgments cited by the applicant were analyzed, with most found irrelevant to the case. The judgments related to activities of photo labs as works contracts, but printing does not fall under works contract as per the GST Act. The Rainbow Colour Lab case highlighted that the dominant intention of a photo lab is to provide a printing service, treating it as a service.

5. The ruling concluded that the applicant's activity of printing photographs from media is classified under SAC 9989, making it a service. Therefore, the activity is taxable at 12% under specific notifications of the Central Tax (Rate) as amended. The ruling remains valid unless declared void under the provisions of the GST Act.

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