The West Bengal Appellate Authority For Advance Ruling (AAR), has recently held that Duplex board being a form of paper board, printing on the same falls under Chapter 48 of the Customs Tariff Act, attracting tax @ 12% GST.
The ruling resulted from an application made before the AAR by the applicant, under sub section (1) of section 97 of the GST Act and the rules made there under, seeking an advance ruling on applicability of GST rate on works contract (job work).
The question on which the advance ruling was sought, being covered under clause (a) section 97 (2) of the GST Act, it was stated by the applicant that the same was neither decided by, nor pending before any authority under any provision of the GST Act, and that the officer concerned from the revenue hasn’t raised any objection to the admission of the application.
Admitting the application, the AAR observed – “To determine the applicable rate of tax on such supply, we first need to decide whether such activities would be regarded as supply of goods or supply of services. Entry No. 3 of Schedule II of the GST Act classifies any treatment or process which is applied to another person’s goods as a supply of services. Here, it is an admitted fact that the applicant carries out printing works on goods (duplex board for the instant case) owned by its customers, and therefore, the activities of printing of duplex board belonging to its customers, would be treated as supply of services. And in the view of the above discussions, we rule that the Supply of services for printing on duplex board belonging to the recipient including cutting, punching and lamination of the duplex board, so printed, would attract tax @ 12%, irrespective of the recipient of the services is registered under the GST Act or not.”
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