TMI Blog2022 (11) TMI 629X X X X Extracts X X X X X X X X Extracts X X X X ..... r journal or periodical, then the services of the applicant is covered under Entry No. 27(ii) which reads other manufacturing services; publishing, printing and reproduction services; materials recovery services, other than (i) above and hence is liable to tax at 18%. - A.R.Com/14/2022 TSAAR Order No. 55/2022 - - - Dated:- 14-9-2022 - SRI S.V. KASI VISWESWARA RAO, AND SRI SAHIL INAMDAR, MEMBER [ORDER UNDER SECTION 98(4) OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 AND UNDER SECTION 98(4) OF THE TEALANGANA GOODS AND SERVICES TAX ACT, 2017.] ****** 1. M/s. Dachepalli Printers, Plot No.121/5, IDA, Phase-2 Cherlapally, Hyderabad, Medchal, Malkajgiri, Telangana 500 051(36AAQFD8935R1ZB) has filed an application in FORM GST ARA-01 under Section 97(1) of TGST Act, 2017 read with Rule 104 of CGST/TGST Rules. 2. At the outset, it is made clear that the provisions of both the CGST Act and the TGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to any dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the TGST Act. Further, for the purposes of this Advance Rulin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Applicant is requesting to clarify the rate of tax on the services offered by them. Hence this application. 7. PERSONAL HEARING: The Authorized representatives of the unit namely Sri D. Vinod Kumar, Partner Sri B. Venkat Reddy, Manager attended the personal hearing held on 25.08.2022. The authorized representatives reiterated their written statement and averred as follows: 1. That, they are in the business of printing books and receive two types of contracts where the content is supplied by the recipient of services: a. The recipient of service supplies paper. b. The recipient does not supply paper. 2. That, they are desirous of a clarification regarding the rate of tax in this two types of printing contracts as they have participated in a bid offered by the Telangana Government text book press. Copy of bid document submitted with application. As seen from the bid document submitted by the applicant, the main work under discussion to be done are as under: 1. Printers registered under State and Central Acts in Telangana State Printing and binding machinery located in Telangana State, who are having their own machinery and having the capacit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ucts [, other than diamonds, falling under Chapter 71 in the First Schedule to the Customs Tariff Act, 1975 (51of 1975); (d) Printing of books (including Braille books), journals and periodicals; (da) printing of all goods falling under Chapter 48 or 49, which attract TGST @ 2.5per cent. or Nil; (e) [xxx] (ea) [xxx] (f) all food and food products falling under Chapters 1 to 22 in the First Schedule to the Customs Tariff Act, 1975 (51of 1975); (g) all products falling under Chapter 23 in the First Schedule to the Customs Tariff Act, 1975 (51of 1975), except dog and cat food put up for retail sale falling under tariff item 23091000 of the said Chapter; (h)[xxx] (i) manufacture of handicraft goods. Explanation . - The expression handicraft goods shall have the same meaning as assigned to it in the notification issued in G.O.Ms No. 266 Revenue (CT-II) Department, dt. 29-11-2017 and as amended from time to time. [xxx] 2.5 - (ia) Services by way of job work in relation to- (a) manufacture of umbrella; (b) printing of all goods fal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icals in which the contents are not supplied by the customer gets covered under this entry and here the paper and other materials must be provided by the customer. b. Entry No. 26(ia)(b) Services by way of jobwork in relation to printing of all goods falling under Chapter 48 or 49, which attract CGST @ 6 per cent this involves printing as a job work on the base materials provided by the customer and these materials should fall under Chapter 48 and 49. c. Entry 26(ii)(b) Services by way of any treatment or process on goods belonging to another person, in relation to printing of books (including Braille books), journals and periodicals this includes processes other than printing like book binding, edge cutting etc on the goods belonging to others. d. Entry No. 26(iv) - Manufacturing services on physical inputs (goods) owned by others other than (i) and (ii) above. e. Entry No. 27 is not applicable to these type of transactions as the base material on which printing is done is not belonging to the applicant. Since the nature of activity of the applicant is printing, entry 26(ii)(b) is not applicable. If the final printed material is a book or a journ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x liability on a composite or a mixed supply shall be determined in the following manner, namely:- (a) a composite supply comprising two or more supplies, one of which is a principal supply, shall be treated as a supply of such principal supply; and (b) a mixed supply comprising two or more supplies shall be treated as a supply of that particular supply which attracts the highest rate of tax. From the above, since the printing would be the principal supply of the composite supply, in these cases, the entire composite supply would be treated as a supply of services by way of printing (principal supply) and the tax rate applicable to such printing would be applicable on the entire value of such supply. 8.6 The applicable rate of tax is given vide Notification No. 11/2017-CT(R), dt. 28-06-2017, the relevant portion of which is extracted below: Sl.No. Chapter, Section or Heading Description of Service Rate (per cent.) Condition (1) (2) (3) (4) (5) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 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 others under Heading 9988 of SAC. At Entry No.(i)(d) of Sl.No.26, Service by way of job work in relation to printing of books (including Braille books), journals and periodicals is enumerated. Similarly at Entry No.(ii)(b), Service by way of any tre ..... X X X X Extracts X X X X X X X X Extracts X X X X
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