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TMI Blog2022 (11) TMI 629X X X X Extracts X X X X X X X X Extracts X X X X ..... ries raised by the applicant fall within the ambit of Section 97 of the GST ACT. The Applicant enclosed copies of challans as proof of payment of Rs. 5,000/- for SGST and Rs. 5,000/- for CGST towards the fee for Advance Ruling. The Applicant has declared that the questions raised in the application have neither been decided by nor are pending before any authority under any provisions of the GST Act. The application is therefore, admitted. 4. BRIEF FACTS OF THE CASE: 4.1 The applicant M/s. Dachepalli Printers are in the business of printing text books for Government of Telangana as well as other private organizations where the content is supplied by the recipient of the service. They need a clarification regarding the percentage of CGST and SGST to be applied for the supply of their services. Hence this application. 4.2 Company Background: M/s Dachepalli Publishers from the finest scholarly works to the higher education textbooks and from the best school courses to the unparalleled digital resources for teaching and learning. Their spectrum of academic and educational resources dates back to 1908. 5. QUESTIONS RAISED: Q1. What is the rate of tax under CGST & SGST on the servic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nding per month are eligible to submit the tender. The Director, Telangana Govt. Text Book Press, Mint Compound, Hyderabad-500063, Telangana State, India will verify printing and binding capacity of the tenderer/printer qualified. 11. The paper will be supplied to the tenderer by the Paper Mills in following sizes. (a) For Text Printing: (i) A4 size -70 GSM Map litho Paper shall be supplied in Reel in 79 cms. (b) For Cover Printing: (ii) A4 size-200 GSM White Art card in Sheets in 59 c.m. X 86 c.m. In case of any unavoidable circumstances, the printer has to lift small quantities of paper/cover paper at his own cost from the Godown of Text Book Press as per the instructions of the Director, Text Book Press to avoid delay of printing. 8. DISCUSSION & FINDINGS: 8.1 The applicant is seeking clarification on the taxability of transactions which is effected by him, which are as under: 1. Where content as well as physical inputs are supplied by the recipient of printing services. 2. Where only content is supplied by the recipient of printing services. 8.2 In the first case, Where content as well as physical inputs are supplied by the recipient of printing services, i.e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 TGST @ 2.5 per cent. or Nil. 2.5 - (iia) Services by way of any treatment or process on goods belonging to another person, in relation to printing of all goods falling under Chapter 48 or 49, which attract TGST @ 6per cent. 6 - [(iii) Tailoring services 2.5 - (iv) Manufacturing services on physical inputs (goods) owned by others, other than (i), (ia), (ib), (ic), (ica), (id), (ii), (iia) and (iii) above. 9 - 27 Heading 9989 (i) xxx xxx xxx (ii) Other manufacturing services; publishing, printing and reproduction services; material recovery services; 9 - 8.3 Now we proceed to discuss the activities covered under entry 26(i)(d), entry 26(ia)(b), entry 26(ii)(b) and entry 27(i) and entry 27(ii) in detail: a. Entry No. 26(i)(d) - deals with Services by way of jobwork in relation to Printing of books (including Braille books), journals and periodicals and hence the pure activity of printing of books, journals and periodicals in which the contents are not supplied by the customer gets covered un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able person to a recipient consisting of two or more supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply". And the "principal supply" is defined in clause (90) of section 2 of the CGST Act as under : "(90) "principal supply" means a supply means the supply of goods or services which constitutes the predominant element of a composite supply and to which any other supply forming part of that composite supply is ancillary". As already discussed in this type of composite supply, printing would be the predominant element, the principal supply of the composite supply would be the supply of paper or paperboard. This is also made clear in the Circular No. 11/11/2017-GST issued by the Government of India, dt. 20-10-2017. 8.5 Further, regarding the tax liability in case of composite supply, section 8 of the CGST Act which deals with the issue reads as under: "8. Tax liability on composite and mixed supplies.- The tax liability on a composite or a mixed supply shall be determined in the following manner, namely:- (a) a composi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... serial number 27, for item (i), in columns (3), (4) and (5)and the entries relating thereto in, the following shall be substituted, namely: - (3) (4) (5) (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 TGST @ 6 per cent. or 2.5per cent. or Nil, where only content is supplied by the publisher and the physical inputs including paper used for printing belong to the printer. 6 -"; However, vide Notification No. 6/2021-Central Tax (R) dt. 30-09-2021 amended entry 27 as under: (d) against serial number 27,- (A) item (i) and the entries relating thereto in columns (3), (4) and (5) shall be omitted; (B) for item (ii) and the entries relating thereto in columns (3), (4) and (5), the following entries shall be substituted, namely:- (3) (4) (5) "Other manufacturing services; publishing, printing and reproduction services; material recovery services. 9 -" In the light of the above we conclude that: a) The classification of service of printing at Sl.No.26 of Notification 11 of 2017 enumerates 'Manufacturing services on physical inputs (goods) owned by ..... 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