From the details mentioned below, kindly let me know about how the activity of Printing Bill books as per clients requirement with material NOT supplied by client but purchased on own and kept in stock, shall be treated under GST - Manufacturer or Service Provider!
A person purchases Loose Paper Sheets, Gum, Binding Materials, Printing Essentials, Ink, etc. from a Registered Seller under GST.
He processes the same to prepare Bill Books and other Stationery used Commercially by various Businessman for its billing.
Among his total sales, around 50% of Sales is made to one Govenment Department of Bill Book/Vouchers printed as per their design or text. However Government department or other clients do not provide any material also they do not ask to take bill of material to be used in its name. So raw material and stock is maintained by person printing books.
Balancing sale other than sale to govt dept is made to various small consumers who are not registered under GST.
Kindly help me for the above and share your opinion on what this activity shall be considered as ? (Before GST, it was registered under VAT and taken as Purchase & Sales )
Also please tell me about Rate applicable for the same.
I WOULD LIKE TO SHARE MY NUMBER AND EMAIL ID SO IF ANYONE WISH TO REPLY ME PERSONALLY CAN DO IT FOR BETTER AND QUICK CONVERSATION.
CELL : 94272 18203 EMAIL : hdm.gst@gmail.com
As per definition of Job Worker, it is a person who perform process or activity on material supplied to it by principle.
06 September 2017
Provider of Printing work as per the requirement of clients is a service provider. Printing of bill books is not a manufacturing work.
06 September 2017
Activity is not 'manufacture' but 'service' being works contract. Inference:- State of Maharatra Vs. Sarvodaya Printing Press (1999) 114 STC 242(SC).
07 September 2017
Thank you for responding. Than in that case our Input will be goods on which ITC will be claimed and output will be service for which Output Service tax is to be paid. Is it so? If this is logical and true in the eyes of law? I have a doubt because in GST though this is possible being single tax now, but if that is the scenario of input of goods and output of service how this was dealt in with upto now because they cannot get set off of VAT ITC against Output Service ever. Kindly help me with rate applicable for the same.
07 September 2017
with due respect to senior experts viz. Seetharman and B Chakrapani Warrier, I think GST being a game changer Act, let us NOT take the support of old cases especially so when they are touching a controversial area e.g. works contract......(Works contract being a charging area, the courts did give some judgements based on the facts put before them and the way the facts put before them.) In simple words, the activity as mentioned in the query amounts to manufacture and then the subsequent difficulties as to ITC get answered by themselves.... your views please.
07 September 2017
18% GST is applicable and ITC on input material can be claimed being GST is common for material and services. See the link for more information. https://www.caclubindia.com/forum/gst-rate-on-printing-of-bill-book-by-a-printing-press--403962.asp
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