18% GST applicable to Service of Printing of Pictures, says CBIC [Read Circular]

Printing GST

The Central Board of Indirect Taxes and Customs (CBIC) has recently issued a circular clarifying that the service of printing of pictures would attract 18 percent GST.

This is in the light of representations received by the Board regarding the issue that the service of “printing of pictures” correctly covered under service code 998386 – “Photographic and video graphics processing services” is being classified by trade under service code 998912 – “Printing and reproduction services of recorded media, on a fee or contract basis”.

The two service codes attract different GST rate of 18% and 12% respectively and therefore the wrong classification may lead to short payment of GST.

Also Read: Services provided by IFC and ADB exempt from GST: CBIC

The Board noted that according to Explanatory Notes to the scheme of classification of services, the service code “998386 Photographic and video graphics processing services, includes, – developing of negatives and the printing of pictures for others according to customer specifications such as enlargement of negatives or slides, black and white processing; colour printing of images from film or digital media; slide and negative duplicates, reprints, etc.; developing of film for both amateur photographers and commercial clients; preparing of photographic slides; copying of films; converting of photographs and films to other media.”

It was further noted that according to explanatory notes, the service code 998912 “Printing and reproduction services of recorded media, on a fee or contract basis” clearly excludes, – -color printing of images from film or digital media, cf. 998386, -audio and video production services, cf. 999613”

The circular, therefore, clarified that “service of “printing of pictures” falls under service code “998386: Photographic and video graphics processing services” and not under “998912: Printing and reproduction services of recorded media, on a fee or contract basis” of the scheme of classification of service annexed to notification No. 11/2017-Central Tax(Rate) dated 28.06.2018.”

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