31 May 2021
Sir We are publication co. want to know if we print another out side news magazine ( Not. Regd.) or broucher etc from our printer on contract basis ( printer raised bill to us ) in this matter our company issued bill to another party what should be charge GST Rate and what is HSN Code ?
07 July 2024
In your case, as a publication company printing outside news magazines or brochures on a contract basis, there are specific GST rates and HSN codes applicable for printing services.
### GST Rate and HSN Code for Printing Services:
1. **Printing Services (Job Work)**: - If your company is engaging in printing services where you supply the content and specifications, and the printer performs the printing, it is considered a job work service. - The HSN code for printing services (other than printing of newspapers, books, journals, and periodicals) is **9989**. - The applicable GST rate for such printing services is **18%**.
2. **Supply of Printed Magazines or Brochures**: - If you are supplying printed magazines or brochures, it can be categorized as a supply of printed goods. - The HSN code for printed books, brochures, leaflets, and similar printed matter is **4901**. - The applicable GST rate for printed books, brochures, leaflets, and similar printed matter is **0%** (nil rate), provided they are not advertisements. However, if they are promotional or advertising materials, the rate can vary.
### Scenario Breakdown:
1. **When Printer Raises Bill to You**: - The printer will charge you 18% GST for the printing services provided, under HSN code 9989. - Example: If the printing bill is ₹1,00,000, the GST charged would be ₹18,000, making the total ₹1,18,000.
2. **When You Raise Bill to Another Party**: - If you are charging for the printed magazines or brochures: - If the printed material is educational or non-advertising (e.g., informational brochures), the HSN code is 4901 with a 0% GST rate. - If the printed material is for advertising or promotional purposes, the HSN code remains 4901 but with a GST rate of 18%. - Example 1 (Non-Advertising): If the sale value of printed brochures is ₹50,000, the GST would be 0%, and the total bill amount would be ₹50,000. - Example 2 (Advertising): If the sale value of printed promotional brochures is ₹50,000, the GST would be 18%, making the total ₹59,000.
### Important Points: - **Job Work**: Ensure that the contract with the printer clearly specifies it as a job work service. - **Categorization**: Properly categorize the printed material based on its use (informational vs. advertising) to determine the correct GST rate. - **Documentation**: Maintain all invoices and documentation to support the nature of the printed material for GST compliance.
### Example Invoices:
1. **Invoice from Printer to Your Company (Job Work Service)**: ``` Invoice No: 12345 Date: 01/07/2024 To: Your Publication Company Description: Printing services for brochures HSN Code: 9989 Amount: ₹1,00,000 GST @18%: ₹18,000 Total: ₹1,18,000 ```
2. **Invoice from Your Company to Another Party (Supply of Printed Brochures)**: **Non-Advertising Brochures (0% GST)**: ``` Invoice No: 54321 Date: 05/07/2024 To: Another Party Description: Supply of printed brochures HSN Code: 4901 Amount: ₹50,000 GST @0%: ₹0 Total: ₹50,000 ```
**Advertising Brochures (18% GST)**: ``` Invoice No: 54322 Date: 05/07/2024 To: Another Party Description: Supply of printed promotional brochures HSN Code: 4901 Amount: ₹50,000 GST @18%: ₹9,000 Total: ₹59,000 ```
By following the above guidelines, you can ensure correct GST compliance and appropriate billing for your printing services and the supply of printed materials.
CAclubindia
