TMI Blog2019 (12) TMI 1118X X X X Extracts X X X X X X X X Extracts X X X X ..... 21 (ii) of the Rate Notification - Service by way of printing (SAC 998912) of all goods falling under Chapter 48 or 49 of the First Schedule of the Customs Tariff Act, 1975 (where the physical inputs are supplied by the printer) is taxable @ 12% under SI No. 27 (i) of the Rate Notification. The mixed supply of the Applicant should, therefore, be treated taxable under SI No. 21 (ii) of the Rate Notification. The Applicant is making a mixed supply to the Tollygunge Club of printing service (SAC 998912) and intermediary service for selling space for advertisement on behalf of the club (SAC 998362). It shall be treated as supply of the above intermediary service taxable @ 18% under SI No. 21 (ii) of Notification No. 11/2017 - CT (Rate) date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting of advertisement space for the Directory. The Applicant will have to finance the project cost of printing the Directory from the proceeds from sale of space for advertisements. If it exceeds the final project cost for printing, the Applicant will gain 75% of the differential amount. If it does not cover the cost of such printing, the Applicant will have to bear the losses to that extent. The Applicant will raise tax invoice on the Club for the printing service. However, the Club will also raise invoice on the Applicant for the amount by which the proceeds from sale of advertisement space falls short of the cost of printing. 1.2 The Club will fix the specifications and rates for booking the advertisement space. The Applicant wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , therefore, admitted. 2. Submissions of the Applicant 2.1 The Applicant submits that print media, as defined in clause 2 (zr) of Notification No. 9/2017 -Integrated Tax (Rate) dated 28/06/2017, as amended from time to time, includes books, as defined in section (1) (1) of the Press and Registration of Books Act, 1867, but does not include business directories, yellow pages and trade catalogues which are primarily meant for commercial purpose. The Applicant argues that the Directory is not meant for commercial purpose. It, therefore, is a book and part of the print media as defined under clause 2 (zr) of the above notification. 3. Submissions of the Revenue 3.1 The concerned officer from the Reven ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f business. They are bound by an obligation discussed above and is a specific feature of the agreement between the Applicant and the Club. It is, therefore, not a composite supply. 4.3 Supply by a taxable person of a bundle of services at a single price, if it does not constitute a composite supply, is a mixed supply within the meaning of section 2 (74) of the GST Act. It should, therefore, be treated as supply of that service which attracts the highest rate of tax [section 8 (b) of the GST Act], 4.4 Selling of space for advertisement, when made as an intermediary, is classifiable under SAC 998362, which excludes sale of advertising space in print media (SAC 998363) and is taxable @ 18% under SI No. 21 (ii) of the Rate Not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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