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TaxTMI 
TaxTMI 
2019 (10) TMI 526
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....out by the applicant falls under supply of goods or supply of services and what is the rate of tax chargeable under each of the above category. 4. The applicant gives the details of his activities and the same are as under: 4.1 The applicant is involved in the printing and supply of paper and paper boards and is also involved in the printing under job work. Regarding the question before the authority, he states that the printing and all related works are done as per the specifications of the customer and the activity involves the following stages Board Cutting of Duplex Boards → Printing → Lamination, UV Coating and Foil Stamping → Punching → Pasting Quality Inspection → Dispatch. 4.2 The applicant states that all the raw materials are sourced locally and the raw materials include Paper and Paper board, Inks, Adhesives, Films and Chemicals. Wherever the raw materials are supplied by their customers, the applicant does the printing and return the processed goods. Where part of the raw materials are supplied by their customers, the applicant used some quantity of their raw materials required for completing the process and then return the pro....
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.... (b) printing of all goods falling under Chapter 48 or 49, and will attract CGST @ 6% (ii) Services by way of any treatment or process on goods belonging to another person, in relation to printing of all goods falling under Chapter 48 or 49, which will attract CGST at 6% or 2.5% or Nil, where only content is supplied by the publisher and the physical inputs including paper used for printing belong to the printer. 6. The applicant states that since printing is now considered to be "supply of services", as per the Finance Ministry, whenever a printing unit engages in producing customised printed material, it would be treated as ply of printing services" and would be subject to GST rates as per serial no. 26 and 27 of Notification No. 11/2017 - Central Tax (Rate) dated 28.07.2017 and this amounts to a GST of 18%. 6.1 The applicant states that if one looks for the GST rate of brochures and leaflets, using the GST Rate Finder App launched by the Central Board of Excise and Customs, it shows that this comes under HSN 4901, meaning 5% GST is applicable to these jobs. This means that these jobs fall under the "supply of goods". On the other hand, the GST rates given un....
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....ted article are to be considered as "supply of services" PERSONEL HEARING / PROCEDINGS HELD ON 23/04/2018 7. Sri. Dinesh Joga, authorized representative of the applicant appeared for personal hearing proceedings held on 23.04.2018 and reiterated the facts narrated in their application. 8. FINDINGS & DISCUSSION: 8.1 We have considered the submissions made by the Applicant in their application for advance ruling as well as the submissions made by Sri Dinegh Joga, authorised representative of the applicant, during the personal hearing. We have also considered the issues involved, on which advance ruling is sought by the applicant, and relevant facts. 8.2 At the outset, we would like to state that the provisions of both the CGST Act and the KGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the KGST Act. 8.3 The applicant is seeking clarification on the taxability of the two types of transactions which is effected by him, using the content provided by the customers and they are as under: a) wher....
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....ticular supply which attracts the highest rate of tax." From the above, since the printing would be the principal supply of the composite supply, in these cases, the entire composite supply would be treated as a supply of services by way of printing (principal supply) and the tax rate applicable to such printing would be applicable on the entire value of such supply. 8.6 Further, Entry no. 27 of Notification No. 11/2017 - Central Tax (Rate) was substituted to bring in the sub-entry (i) which reads as "Services by way of printing of newspapers, books (including Braille 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" which deals with printing of newspapers, books, journals and periodicals on the physical inputs of the printer himself, which is taxable at 12% (6% CGST + 6% SGST). If the printed item is not newspaper or book or journal or periodical, then the services of the applicant is covered under Entry No. 27(ii) which reads "other manufacturing services; publishing, printing and reproduction services; material recovery services, other than (i) above" and hence ....
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....roduction services; materials recovery services, other than i above 9 9.2 Now we proceed to discuss the activities covered under entry 26(i)(d), entry 26(ia)(b), entry 26(ii)(b) and entry 27 (i) and entry 27(ii) in detail. a. Entry No.26(i)(d) - deals with Services by way of jobwork in relation to Printing of books (including Braille books), journals and periodicals and hence the pure activity of printing of books, journals and periodicals in which the contents are not supplied by the customer gets covered under this entry and here the paper and other materials must be provided by the customer. b. Entry No.26(ia)(b) - Services by way of jobwork in relation to printing of all goods falling under Chapter 48 or 49, which attract CGST @ 6 per cent - this involves printing as a job work on the base materials provided by the customer and these materials should fall under Chapter 48 and 49. c. Entry 26(ii)(b) - Services by way of any treatment or process on goods belonging to another person, in relation to printing of books (including Braille books), journals and periodicals - this includes processes other than printing like book binding, edge cu....