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Printing of content on the PVC materials and supply of printed trade advertising material is a composite supply, 12% GST applicable: AAR [Read Order]

Printing content - PVC materials - supply printed - trade advertising material - composite supply - 12% GST applicable - AAR - PVC - Taxscan

The Tamil Nadu Authority of Advance Ruling (AAR) ruled that the printing of content on the PVC materials of and supply of printed trade advertising material is a composite supply and 12% GST is applicable.

The applicant, M/s Macro Media Digital Imaging Private Limited is engaged in printing of billboards, Building Wraps, Fleet Graphics, Window Graphics, Trade Show Graphics, Office Branding; In-store Branding; Banners; Free Standing Display Units and Signage Graphics, which are referred to as trade advertisement material.

The applicant has sought Advance Ruling on various issues that whether the transaction of printing of content provided by the customer, on poly vinyl chloride banners and supply of such printed trade advertisement material is supply of goods.

The other issue raised by the applicant was that what is the classification of such trade advertisement material if the transaction is a supply of goods.

Also, the advance ruling was sought on the question that what is the classification and applicable rate of Central Goods and Services Tax on the supply of such trade advertisement material if the transaction is that of supply of services.

The two-member bench of Manasa Gangotri Kata and Kulinjee Selvaan observed that the primary part is the printed matter on Vinyl (Self Adhesive) when they serve as advertisement materials, the adhesive part is incidental to the primary use of the said goods and therefore in this case the outputs are classifiable under HSN 4911 as ‘Trade Advertisements’.

The AAR clarified that the goods on which the applicant provides the printing activities ‘Trade advertisements’ are classifiable under Chapter 49 attracting CGST at the rate of 6%.

“the supply of printing services by the applicant are classifiable under SAC 998912.The applicable rates are CGST @9% and SGST @9%o from 0I.O7.2017 to 22.08.2017 and 22.08.2017 to 13.10.2017 vide entry at Sl.No. 27 &,27(ii) respectively and effective from 13.10.2017, the applicable tax rate is CGST @ 6% and SGST @ 6% as per the substituted entry at Sl.No. 27 (i).

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