02 November 2017
F. No. 354/263/2017-TRU Government of India Ministry of Finance Department of Revenue Tax research Unit **** North Block, New Delhi 20th October 2017 To, The Principal Chief Commissioners/Chief Commissioners/ Principal Commissioners/ Commissioner of Central Tax (All) / The Principal Director Generals/ Director Generals (All) Madam/Sir, Subject: Clarification on taxability of printing contracts Requests have been received to clarify whether supply of books, pamphlets, brochures, envelopes, annual reports, leaflets, cartons, boxes etc., printed with design, logo, name, address or other contents supplied by the recipient of such supplies, would constitute supply of goods falling under Chapter 48 or 49 of the First Schedule to the Customs Tariff Act, 1975 (51of 1975) or supply of services falling under heading 9989 of the scheme of classification of services annexed to notification No. 11/2017-CT(R). 2. In the above context, it is clarified that supply of books, pamphlets, brochures, envelopes, annual reports, leaflets, cartons, boxes etc. printed with logo, design, name, address or other contents supplied by the recipient of such printed goods, are composite supplies and the question, whether such supplies constitute supply of goods or services would be determined on the basis of what constitutes the principal supply. 3. Principal supply has been defined in Section 2(90) of the Central Goods and Services Tax Act as supply of goods or services which constitutes the predominant element of a composite supply and to which any other supply forming part of that composite supply is ancillary. 4. In the case of printing of books, pamphlets, brochures, annual reports, and the like, where only content is supplied by the publisher or the person who owns the usage rights to the intangible inputs while the physical inputs including paper used for printing belong to the printer, supply of printing [of the content supplied by the recipient of supply] is the principal supply and therefore such supplies would constitute supply of service falling under heading 9989 of the scheme of classification of services. ular No. 11 / 11/2017GST paper In case of supply of etc . falling under C hapter 48 printed envelopes, letter cards, or rinted boxes, tissues, napkins, wall 49, printed with design, logo etc. supplied by the recipient of goods but made using physical inputs including paper supply is that of goods supply ] and the belonging to the printer, predominant supply of printing of the content [ supplied by the recipient of is ancillary to the principal supply of goods and therefore such supplies would constitute supply of goods falling under respective headings of C 4. Difficulty if any, in the implementation of the Board. Hindi version would follow. hapter 48 or 49 of the Custo ms Tariff. the circular should be brought to the notice of Yours Faithfully, Rachna Technical Officer (TRU) Email: rachna.irs@gov.inMinistry of Finance Department of Revenue Tax research Unit **** North Block, New Delhi 20th October 2017 To, The Principal Chief Commissioners/Chief Commissioners/ Principal Commissioners/ Commissioner of Central Tax (All) / The Principal Director Generals/ Director Generals (All) Madam/Sir, Subject: Clarification on taxability of printing contracts Requests have been received to clarify whether supply of books, pamphlets, brochures, envelopes, annual reports, leaflets, cartons, boxes etc., printed with design, logo, name, address or other contents supplied by the recipient of such supplies, would constitute supply of goods falling under Chapter 48 or 49 of the First Schedule to the Customs Tariff Act, 1975 (51of 1975) or supply of services falling under heading 9989 of the scheme of classification of services annexed to notification No. 11/2017-CT(R). 2. In the above context, it is clarified that supply of books, pamphlets, brochures, envelopes, annual reports, leaflets, cartons, boxes etc. printed with logo, design, name, address or other contents supplied by the recipient of such printed goods, are composite supplies and the question, whether such supplies constitute supply of goods or services would be determined on the basis of what constitutes the principal supply. 3. Principal supply has been defined in Section 2(90) of the Central Goods and Services Tax Act as supply of goods or services which constitutes the predominant element of a composite supply and to which any other supply forming part of that composite supply is ancillary. 4. In the case of printing of books, pamphlets, brochures, annual reports, and the like, where only content is supplied by the publisher or the person who owns the usage rights to the intangible inputs while the physical inputs including paper used for printing belong to the printer, supply of printing [of the content supplied by the recipient of supply] is the principal supply and therefore such supplies would constitute supply of service falling under heading 9989 of the scheme of classification of services.
02 November 2017
thanks...bt please reply..it will be of great assistant as I m will Xerox/ photo copy business....my understanding says it's reduced from 18 to 12 percent....oblidge
22 November 2017
hi..any idea for the above pl..thanks...bt please reply..it will be of great assistant as I m will Xerox/ photo copy business....my understanding says it's reduced from 18 to 12 percent....oblidge
04 August 2024
The notification you provided clarifies the taxability of printing contracts under the GST regime. Here’s a summary and implications based on the content of the notification:
### **Summary of Notification**
**Date:** 20th October 2017 **Subject:** Clarification on Taxability of Printing Contracts
1. **Clarification Provided:** - **Composite Supply:** Goods like books, pamphlets, brochures, envelopes, annual reports, leaflets, cartons, and boxes printed with logos, designs, names, addresses, or other contents are considered composite supplies. - **Principal Supply:** Whether such supplies constitute goods or services depends on what is considered the principal supply.
2. **Principal Supply Defined:** - According to Section 2(90) of the Central Goods and Services Tax Act (CGST Act), the principal supply is the predominant element of a composite supply. The other supplies forming part of the composite supply are ancillary to the principal supply.
3. **Printing of Content:** - If the printing involves books, pamphlets, brochures, or similar items where the content is supplied by the recipient (such as a publisher) and the physical inputs (like paper) are provided by the printer, the printing is the principal supply. Hence, such supplies are classified as a service under heading 9989 of the scheme of classification of services.
4. **Printing of Envelopes, Cards, Boxes, etc.:** - If the physical goods like envelopes, cards, boxes, etc., are provided by the recipient and the printer only performs the printing, the predominant supply is the supply of goods. Therefore, these supplies are classified under Chapter 48 or 49 of the Customs Tariff Act.
### **Impact on Your Business**
As you are involved in the Xerox/photo-copy business, the following points are relevant:
1. **Reduction in Tax Rate:** - The GST rate for printing services can indeed vary. According to the notification and subsequent changes, if the service provided is related to the printing of content (where the content is provided by the recipient), it is classified under a service category which may attract a specific GST rate. - For the Xerox/photo-copying business, the GST rate could be 12%, as the general rate for services related to printing, as of various notifications and amendments, often falls within this bracket. This reduction from 18% to 12% could apply to certain types of printing services.
2. **Classification of Services:** - If you are primarily providing printing services where the content and design are supplied by the client (e.g., printing of documents or promotional materials), you should classify these services under the appropriate service category. This typically falls under heading 9989 or similar classifications as per the GST scheme.
3. **Tax Compliance:** - Ensure that you classify your services correctly and apply the appropriate GST rate. Regularly check for updates in GST rates and classifications, as tax regulations can change.
4. **Documentation and Invoicing:** - Maintain proper documentation for the services provided, including details of the content supplied by clients and the physical goods used. This will help in correct tax compliance and claiming of input tax credits if applicable.
### **Next Steps**
1. **Verify GST Rate:** - Confirm the applicable GST rate for your specific services with the latest GST notifications and updates.
2. **Update Your Records:** - Adjust your invoicing and accounting systems to reflect the correct GST rate.
3. **Consult a GST Professional:** - For precise guidance and compliance, consider consulting a tax professional or GST consultant, especially if there are significant changes in GST rates or classifications.
If you need more details or specific guidance, you can refer to the GST portal or consult with a tax advisor for the most accurate and updated information.
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