TMI Blog2019 (11) TMI 225X X X X Extracts X X X X X X X X Extracts X X X X ..... e is the main supply. Printed books, brochures, leaflets and similar printed matter, whether or not in single sheets are classifiable under HSN 4901 - The aforesaid activities of the applicant are, therefore, covered under the entry No. 26 and 27 of Notification 11/2017-Central Tax (Rate) date 28.06.2017 under the clause (i) of sub clause (da) which attracts 2.5% CGST + 2.5% SGST in respect of job work of printing and binding of books, brochures and leaflets and 6%CGST +6% SGST in respect of calendars. Applicable rate of CGST and SGST - binding of diary, catalogues and books on job work basis - HELD THAT:- Applicant done the job work of binding of Diary, Catalogues and Books, not in relation to printing activity. The activity amounts to supply of service and printing or any work in relation to printing is not involved. Hence this job work is covered under clause (iv) of entry no. 26 of Notification 11 /2017-Central Tax(Rate) inserted vide notification no. 1/2018 Central Tax (rate) Dated 25/01/2018 - the activity of binding of diary, catalogues and books carried out by the applicant on job work basis attracts CGST @9% and SGST @9%. Applicable rate of CGST and SGST - printing a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding of diary, catalogues and printing of monthly and bimonthly magazines. 3. The Applicant had sought advance ruling on classification of goods and services as under:- A. Whether the printed text books for PUC Board classifiable under HSN Code 4901 1010 supplied to resellers is exempt from the payment of CGST and SGST? B. What is the applicable rate of CGST and SGST on printing and binding of brochures, books, calendars, pamphlets on job work basis to the Government authority and other printers? C. What is the applicable rate of CGST and SGST on binding of diary, catalogues and books on job work basis? D. What is the applicable rate of CGST and SGST on printing and supply of text books and work books to the State Government for onward supply to schools? E. Whether the printing and supply of periodicals and magazines referred in HSN code 4901 exempt from payment of GST? 4. FACTS OF THE CASE 4.1 The first question relates to supply of printed text books for the PUC Board. In this context the applicant states that the Karnataka State Pre-University Board floated a tender for the printing of text books and the applicant participated in the ten ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding of Diary, Catalogues and Books. The applicant states that he undertakes the activity of binding of Diary, Catalogues and Books, supplied by the Customers including Government departments. The printed forms and wrappers are received from Government Departments and other customers whereas other materials including manpower and machines used in the binding belong to the applicant. Applicant submits that the activity of binding is done on a job-work basis and covered under clause (ii) of SI No.26 of Notification 11/2017-Central Tax(Rate) which is extracted as under. SI. No. Chapter, Section or Heading Description of Service Rate (%) Conditions 26 Heading 9988 (Manufacturing services on physical inputs (goods) owned by others (ii) services by way of any treatment or process on goods belonging to another person, in relation to (a) printing of newspapers; (b) printing of books (including Braille books), journals and periodicals. (c) Printing of all goods falling under chapter 48 or 49, which attract CGST ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onthly and bi-monthly magazines of Government Departments. Such magazines and periodicals do not contain any advertisement. The content is owned and supplied to the applicant periodically. The Applicant thereafter prints the magazines on the basis of the design template stipulated by the respective department(s). The materials used for designing is provided by the Applicant. The Applicant submits that in the present case, there is a pure activity of printing and supply of printed material to the Recipient. Therefore, as per Notification 2/2017-Central Tax dated 28.6.2017 supply of magazines or periodicals or journals whether or not illustrated or containing advertising materials are exempt from the payment of GST. PERSONAL HEARING/PROCEEDINGS 6. The Applicant authorized Sri. Harish Bindumadhavan, Advocate and the said authorized representative appeared for personal hearing proceedings before this authority and made the following submissions. 6.1. The PUC Board supplies the content on a DVD/CD which is copyright protected for which royalty is paid by the applicant. The activity of printing and supply of the text books is covered under Notification 2/2017-Central Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t books to the resellers it was observed that applicant participated in the tender called by the PUC board for printing and supply of text books and applicant obtained the job of printing and supply of text books. The PUC Board supplies the content of the text book on a DVD/CD. The content is copyright protected for which royalty is paid by the applicant whereas other materials, namely, the paper, board, manpower, Inks, chemicals and machinery used in the printing belongs to the applicant. The applicant printed the PUC text books and supplied to the various resellers in the state. This activity of printing and supply of the text books to the resellers by the applicant is covered under Notification 2/2017-Central Tax (Rate) dated 28/06/2017 under entry No. 119 reads as Printed Books, including Braille Books. This is exempt from the payment of CGST and SGST. 9. The applicant undertakes printing of and binding of brochures, books, calendars, pamphlets, on job work basis on the basis of content and paper supplied by Government authorities and other Printers whereas ink, plates, machines and manpower belongs to the Applicant. In this regard CBEC has issued Circular no. 11/11/2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... refore, covered under the entry No. 26 and 27 of Notification 11/2017-Central Tax (Rate) date 28.06.2017 under the clause (i) of sub clause (da) which attracts 2.5% CGST + 2.5% SGST in respect of job work of printing and binding of books, brochures and leaflets and 6%CGST +6% SGST in respect of calendars. 10. The Applicant undertakes the activity of binding of Diary, Catalogues and Books, supplied by the Customers including Government departments. The printed forms and wrappers are received from Government Departments and other customers whereas other materials including manpower and machines used in the binding belong to the applicant. Applicant done the job work of binding of Diary, Catalogues and Books, not in relation to printing activity. The activity amounts to supply of service and printing or any work in relation to printing is not involved. Hence this job work is covered under clause (iv) of entry no. 26 of Notification 11 /2017-Central Tax(Rate) inserted vide notification no. 1/2018 Central Tax (rate) Dated 25/01/2018 which is extracted as under.- (iv) Manufacturing services on physical inputs (goods) owned by others, other than (i), (ia), (ii), (iia) and (iii) a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nded by Notification No. 20/2017 - Central Tax (Rate) dated 22.08.2017 whereas printing and binding of calendars attracts 6% CGST and 6% SGST under clause (iia) of Entry No. 26 of Notification No. 11/2017 - Central Tax (Rate) dated 28.06.2017 as amended by Notification No. 31/2017 - Central Tax (Rate) dated 13.10.2017. 3. The binding of Diary, Catalogues and Books carried out on job work basis attracts CGST @ 9% and SGST @ 9% under clause (iii) of Entry no. 26 of Notification No. 11/2017 - Central Tax (Rate) dated 28.06.2017 as amended by Notification No.31/2017 - Central Tax (Rate) dated 13.10.2017. 4. The printing of textbooks and workbooks and supplied back to State Government across the state attracts CGST @ 6% and SGST @ 6% under clause (i) of entry no.27 of Notification No.11/2017 - Central Tax (Rate) dated 28.06.2017 as amended by Notification No.31/2017 -Central Tax (Rate) dated 13.10.2017. 5. The printing and supply of periodicals and magazines to the Government Departments attracts CGST @ 6% and SGST @ 6% under clause (i) of entry no.27 of Notification No.11/2017 - Central Tax (Rate) dated 28.06.2017 as amended by Notification No.31/2017 -Central Tax (Rate) dated ..... X X X X Extracts X X X X X X X X Extracts X X X X
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