The Authority for Advance Ruling (AAR), daman and Diu has recently clarified that the activity of printing of pamphlets/ leaflets are subject to Goods and Services Tax (GST) as supply of service.
The applicant, M/s Temple Packaging Pvt Ltd approached the AAR seeking a clarification that whether the activity of printing of pamphlets/ leaflets would amount to supply of service or goods under the new tax regime.
The applicants argued that they were subjected to excise duty under the old tax regime and the goods were classified under Chapter sub-heading No. 4901. It was submitted that the said goods were also exempted from excise duty. They produced the relevant notifications and circulars in this regard.
The AAR held that the printing of Pamphlet/leaflet falls under the category of Supply of Service falling under SAC No.9989.
It was further noted that the referred Circular belong to pre-GST era, and hence, not applicable in the GST cases.
“Similarly, it is further noted that the applicant in their defense, relied upon plethora of judgments while contending that their product is goods. We have gone through all the cases and found no force in any of the judgment applicable in their defence. Further the crux of all judgment referred by the applicant either pertain to Central Excise or Customs cases and the circumstances /issue referred in the cases relied are different from the issue in hand, hence not applicable. Thus, we find that the judgments relied upon by the applicant assessee are not applicable in present case and the product Pamphlet/leaflet has the dominance of service and correctly classifiable under SAC 9989 if the contents are supplied by the customer as in the present case,” the authority said.
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