TaxTMI 
TaxTMI 
2020 (3) TMI 69
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....Urban -560 048, Karnataka, having GSTIN number 29AABCM9451F1ZA, have filed an application for Advance Ruling under Section 97 of CGST Act,2017 & KGST Act, 2017 read with Rule 104 of CGST Rules 2017 & KGST Rules 2017, in form GST ARA-01 discharging the fee of Rs. 5,000/- each under the CGST Act and the KGST Act. 2. The applicant is engaged in the business of printing of trade advertising material (Billboards, Building Wraps, Fleet Graphics, Window Graphics, Trade Show Graphics, Office Branding, In-store Branding, Banners, Free Standing Display Units and Signage Graphics), for which required raw materials such as poly vinyl, flex, paper, cloth printing inks etc., are procured by themselves. The activity of printing is based on specificatio....
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....y were not charging any service tax, in the states wherein the activity was considered as 'works contract', as it is settled position of law that the said activity amounts to manufacture, classified under CETH 4911, attracting 'NIL' rate of duty. 6. In view of the above, the applicant sought advance ruling in respect of the following questions:- 1. Whether the transaction of printing of content provided by the customer, on Poly Vinyl Chloride (PVC) banners and supply of such printed trade advertisement material is supply of goods. 2. What is the classification of such trade advertisement material if the transaction is supply of goods? 3. What is the classification and applicable rate of CGST on the supply of su....
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....ade advertising material' and hence is taxable @12%, in terms of Notification No.01/2017-Central Tax (Rate) dated 28.06.2017, as amended. Further, even if the supply is considered as composite supply, the principal supply would be supply of goods only and hence attract GST in the aforesaid lines. PERSONAL HEARING / PROCEEDINGS HELD ON 21.11.2019. 10. Sri Syed M Peeran, Advocate and duly authorised representative of the applicant appeared for personal hearing proceedings held on 21.11.2019 & reiterated the facts narrated in their application. 11. FINDINGS & DISCUSSION: 11.1 We have considered the submissions made by the Applicant in their application for advance ruling as well as the submissions made by Sri Syed M Peeran, Advocat....
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....t Visakhapatnam, Andhra Pradesh, passed by the Authority for Advance Ruling, Andhra Pradesh, Vijayawada. 11.5 The Applicant seeks advance ruling on the questions mentioned at para 6 supra. Though the application consists of three questions, the crux of the issue is whether the activity of the applicant amounts to supply of goods or services and the classification & applicable rate of GST thereon on the said supply. Therefore we proceed to examine the nature of supply & thereby to decide whether the said supply is of goods or services. 11.6 The applicant receives the orders from their customers for printing of the content of advertisement on the material specified & supply of the same, for which the content is provided by the customers....
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....he principal supply and therefore such supplies would constitute supply of service, falling under heading / SAC 9989, subject to the following conditions namely:- a) The content is supplied by the publisher or the person who owns the usage rights to the intangible inputs. b) The physical inputs including paper used for printing belong to the printer. 11.10 Para 5 of the circular specifies that in the case of supply of printed envelopes, letter cards, printed boxes, tissues, napkins, wall paper etc., falling under Chapter 48 or 49, printed with design, logo etc., supplied by the recipient of goods but made using physical inputs including paper belonging to the printer, predominant supply is that of goods and the supply o....
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....r/billboard etc., and thus the nature of the material changes. Further the applicant does not own or retain the usage rights of intangible inputs. In view of the foregoing the activity of printing of the content, supplied by the recipient, on the PVC material becomes principal supply and such supply constitute supply of service falling under SAC 9989. 11.13 The Applicant referred to several judgments of the apex court and the Tribunal, which are all related to the classification of the goods being supplied (Trade Advertising Material) as to whether they are to be classified under Chapter 39 or 49 of the Tariff Act. This authority does not dispute the classification of the said goods under Chapter 49. However, in the instant case such sup....