TMI Blog2018 (6) TMI 519X X X X Extracts X X X X X X X X Extracts X X X X ..... ng printed advertisement materials amounts to supply of 'goods' only. The printed advertisement material are classifiable under Tariff heading 4911 in accordance with the rules for the interpretation of the First Schedule to the Customs Tariff Act, 1975, including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule as made applicable for the interpretation and classification of goods under GST Tariff. Ruling:- The printed advertisement materials manufactured and supplied by the applicant are classifiable as 'supply of goods' - The printed advertisement material are classifiable under chapter heading 4911 of the GST Tariff and the rate of tax applicable is 6% CGST + 6% SGST. - A.R.Com/5/2017 - 4/2018 - Dated:- 30-5-2018 - Sri J. Laxminarayana, Additional Commissioner (State Tax) And Sri V. Srinivas, IRS, Joint Commissioner (Central Tax) ORDER 1. M/s. Macro Media Digital Imaging Private Limited, Charlapally, Hyderabad (GSTIN No.36AABCM9451F1ZF) has filed an application in Form GST ARA-01under Section 97(1) of TGST Act,2017 read with Rule 103 of CGST/TGST Rules, 2017and sought Advance Ruling on the following issues:- (i) Whether ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s Annexure-I. b. Applicant understands that GST is a tax to be levied on supply of goods and/or services. Any transaction of supply of goods and/or services would attract,- i. CGST (Central GST) and SGST (State GST) if supply is intra-state ii. IGST (integrated tax) if the supply is inter-state. c. Applicant understands that levy and collection of the CGST is governed by the Central Goods and Services Tax Act, 2017 (hereinafter referred to as the 'CGST Act') and levy and collection of SGST is governed by respective state GST Acts [Telangana Goods and Services tax Act (TGST), 2017 for the state of Telangana]. Similarly, levy and collection of IGST is governed by Integrated Goods and Services Act, 2017, (hereinafter referred to as the 'IGST Act'). d. Applicant understands that the activity undertaken by Applicant falls within the scope of the 'supply' as defined under Section 7 of CGST Act, 2017 (which was made applicable to IGST) and also under Section 7 of TGST Act, 2017. e. Applicant understands that above referred GST law has prescribed different rates on different goods/services and also has different provisions relating to time of suppl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rty', then same falls under the scope of 'Movable property'. The term 'Immovable property' includes land, benefits to arise out of land and things attached to the earth or fastened to the earth. j. Further, the settled legal position under the provisions of Central Excise as well as sales tax is that things which are capable of being moved from one place to another without any substantial damage to the property while shifting, are not 'immovable property' but is 'movable property'. k. In the instant case, Applicant supplies the printed trade advertising materials (i.e. Banner flex), which is freely movable from one place to another thereby it becomes 'movable property' and consequently falls under the ambit of 'goods' u/s. 2(52), ibid. l. Applicant further understands that Section 9 of CGST Act, 2017 read with Schedule-II Sl. No. 1(a) provides that:- i. any transfer of the title in goods is a supply of goods ii. In the instant case, Applicant is transferring the title in the goods qua printed materials. Therefore, instant case of supplying printed advertisement materials amounts to supply of 'goods' m. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y other devices. s. As the instant case of supplying printed advertisement materials are used for trade advertising and not covered under any other heading of chapter 49, Applicant understands that same will fall under the heading 4911 which is liable for GST at the rate of 12%. t. The above understanding was also supported by chapter note 5 to Chapter 49 of Customs Tariff Act, 1975 which reads as under :- i. Subject to Note 3 to this Chapter, heading 4901 does not cover publications which are essentially devoted to advertising (for example, brochures, pamphlets, leaflets, trade catalogues, year books published by trade associations, tourist propaganda). Such publications are to be classified in heading 4911 . u. Applicant understands that Notification No. 11/2017 - Central Tax (Rate), dt. 2806-2017 as amended by Notification No. 31/2017 - Central Tax (Rate), dt. 13-102017 which specifies the rates for 'supply of services' reads as under (Sl. No. 21(i)):- i. (i) Services by way of printing of all goods falling under Chapter 48 or 49 [including newspapers, books (including Braille books), journals and periodicals], which attract CGST @ 6 per cent. or 2.5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssifiable under Chapter Heading 4911 and liable for GST at the rate of 12% as per the sl. 132 of Schedule-II to the Notification No. 01/2017-CT(R) dated 28-06-2017 as amended read with Telangana State Notification No. 01/2017 - State Tax (R) dt. 29-06-2017 as amended. 6. As per Section 7 of CGST Act, 2017 read with Schedule-II Sl. No. 1(a) of CGST Act , any transfer of the title in goods is a supply of goods . In the instant case the applicant is engaged in the business of manufacturing and sale of digital printed materials, wherein preparation of such printed material would be undertaken as per the customers specification and except specifying the specifications and designs to be printed, clients/customers of applicant does not provide any materials and all required materials for the preparation of the advertisement materials are procured by the applicant ,and the applicant is transferring the title in the goods i.e., printed advertisement materials. Therefore, instant case of supplying printed advertisement materials amounts to supply of 'goods' only. 7. Further, printed advertisement material are classifiable under Tariff heading 4911 in accordance with the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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