TMI Blog2020 (3) TMI 69X X X X Extracts X X X X X X X X Extracts X X X X ..... c., 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. 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 service - The classification of aforesaid supply of service is 9989 of the scheme of classification of services - The applicable rate of GST on the supply of aforesaid service is 18% up to 30.10.2017 12% effective from 31.10.2017, as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rams of the customers constitutes manufacture in terms of CGST Act 2017 and such manufactured products are supplied by the applicant to their customers. The applicant uses any of the PVC material, on the basis of customer s specification, i.e. vinyl classified under 3919 90 50/ 3919 90 90, Back Lit Flex Blackout Flex both classified under 3921 90 26, Foam Board classified under 3920 61 90. The applicant procures required PVC material, prints the content on it and supply such printed trade advertisements to the customer. 4. The design and graphics of the advertisements are not done by the applicant but are provided by the customers themselves. The applicant merely undertakes the activity of printing on the material. Further the applic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ends that their supply, i.e. printed trade advertising material, amounts to supply of goods, which are freely movable from one place to another, thereby becomes movable property and consequently falls under the ambit of goods in terms of Section 2(52) of the CGST Act 2017. Further the title of the impugned material is being transferred and hence the supply amounts to supply of goods in terms of Section 9 of the CGST Act 2017. The applicant intend to place reliance on the TRU circular No. 11/11/2017-GST dated 20.10.2017, specifically para 5. 8. The applicant further contends that the supply of trade advertisements involves multiple supplies hence amounts to composite supply , and endeavors to support their claim by quoting many c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and relevant facts. 11.2 At the outset, we would like to state that the provisions of both the CGST Act and the KGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the KGST Act. 11.3 The Applicant seeks advance ruling in respect of three questions mentioned at para 2 supra, which are related to classification of their activity/supply, as to whether it amounts to supply of goods, if so, the HSC of the said supply 8s then the consequential rate of GST applicable. 11.4 The applicant company, on behalf of West Bengal Unit/premises at Kolkata and Telangana Unit at Hyderabad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ontent to be printed on the said material. The applicant contends that their activity of printing the advertising material, where the content is supplied by the recipient, on the required PVC material amounts to supply of goods and draws attention to the Circular No. 11/11/2017-GST dated 20.11.2017, specifically to para 5, wherein a clarification has been given on taxability of printing contracts. Hence we proceed to discuss and analyse the said circular. 11.7 Para 2 of the circular clarifies that supply of books, 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of goods falling under respective headings of Chapter 48 or 49 of the Customs Tariff. 11.11 It could be inferred, on combined reading of paras 4 5 of the aforesaid Circular, that the ownership of usage rights of intangible inputs places crucial role in deciding the supply as that of goods or services, though there exist two common points in both the cases i.e.- a) The content is supplied by the recipient of goods / services. b) The physical inputs including paper used for printing belong to the printer. 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., ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
