TaxTMI 
TaxTMI 
2019 (11) TMI 1566
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....hapatnam, Vijayawada, Mumbai, Bangalore, Kochi, Kolkata, is inter-alia engaged in printing of following:- Billboards; Building Wraps; Fleet Graphics; Window Graphics; Trade Show Graphics; Office Branding; In-store Branding; Banners; Free Standing Display Units; and Signage Graphics. The above referred printed products are hereinafter referred to as 'trade advertisements'. 1.2 The printing of trade advertisements is carried out by the Applicant on Poly Vinyl Chloride (hereinafter referred to as 'PVC') material. Various types of PVC material which printing is carried out by the Applicant vis-a-vis their Harmonized Commodity Description of Coding System Nomenclature (hereinafter referred to as "HSN") classification are listed as....
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.... 1.5 The applicant emphasized to be specifically noted that designing and graphics of the advertisements are not done by the applicant. The applicant is provided with the designed trade advertisements by the customers. The applicant merely sources the desired PVC material (blank) from independent supplier and undertakes the activity of printing on the material. Samples of the PVC material sourced by the applicant, and printed trade advertisement material supplied by the applicant have been annexed hereto. 1.6 That billing format of the invoices raised by the applicant on the customers is such that in the description field, applicant specifies charges on two accounts i.e. 'printing' and 'supply', wherein the former represents the servic....
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....tions on which Advance Ruling is sought by the applicant are as under: - a. Whether the activity of procuring PVC material (blank), printing of trade advertisement material on the said PVC material (blank) as per the design and graphics provided by the customer and supply of such printed banners to the shipping location mentioned in purchase order, amounts to supply of 'goods' in terms of CGST Act? b. What is the appropriate classification of such trade advertisement, if supply of such trade advertisement amounts to supply of 'goods'? c. What is the classification and applicable rate of Central Goods and Services Tax on the supply of such trade advertisement material if the transaction is that of supply of service....
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....tification 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. 4. DISCUSSION & FINDINGS: 4.1 We have considered the submissions made by the Applicant in their application for advance ruling as well as the submissions made by the authorized 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. 4.2 At the outset, we would like to state that the provisions of both the CGST Act and the HGST Act are the same except for certain provisions. Therefore, ....
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....pamphlets, brochures, envelopes, annual reports, leaflets, cartons, boxes etc., printed with logo, design, name, address or other contents supplied by the recipient of such printed goods, are composite supplies and the question, whether such supplies constitute supply of goods or services would be determined on the basis of what constitutes the principal supply. 4.6 Principal supply, in terms of Section 2 (90) of CGST Act 2017, is supply of goods or services which constitutes the predominant element of composite supply and to which any other supply forming part of that composite supply. 4.7 Para 4 of the circular specifies that in the case of printing of books, pamphlets, brochures, annual reports, and the like, the supply of printing....
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.... Further, on careful reading of Para 5, it could easily be inferred that the nature of physical inputs, on which printing activity is carried out, does not change after the process of printing i.e. the napkin, tissue etc., are the same before and after the printing and hence the printing activity is ancillary and hence the supply of the same is that of supply of goods. The classification of the said goods prior or after the printing is same and is either Chapter 48 or 49. 4.11 In the instant case, it is an admitted fact that the PVC material is classified under Chapter 39 prior to printing and after printing it would become Trade Advertising Material & falls under Chapter 49. Therefore the activity of printing makes the PVC material into....