Page 117 - GSTL_26th March 2020_Vol 34_Part 4

2020 ] IN RE : MACRO MEDIA DIGITAL IMAGING PVT. LTD. 627
3. The applicant states that activity of printing on any of the aforesaid
poly vinyl material with trade monograms of the customers constitutes ‘manu-
facture’ in terms of CGST Act, 2017 and such manufactured products are sup-
plied by the applicant to their customers. The applicant uses any of the PVC ma-
terial, on the basis of customer’s specification, i.e. vinyl classified under 3919 90
50/3919 90 90, Back Lit Flex & Blackout Flex both classified under 3921 90 26,
Foam Board classified under 3920 61 90. The applicant procures required PVC
material, prints the content on it and supply such printed trade advertisements
to the customer.
4. The design and graphics of the advertisements are not done by the
applicant but are provided by the customers themselves. The applicant merely
undertakes the activity of printing on the material. Further the applicant, in the
bill, charges on two accounts i.e. ‘printing’ and ‘supply’, wherein the former rep-
resent the service activity of printing and the latter represent the physical supply
of printed trade advertisements on the PVC material.
5. The applicant further states that in the pre-GST regime, the activity
of printing and supply of trade advertisements was considered as ‘pure sale’ by
some states and some other states as ‘works contract’. They were paying applica-
ble VAT in the States wherein the said transaction/activity was considered as
‘pure sale’. Further they were not charging any service tax, in the States wherein
the activity was considered as ‘works contract’, as it is settled position of law that
the said activity amounts to manufacture, classified under CETH 4911, attracting
‘NIL’ rate of duty.
6. In view of the above, the applicant sought advance ruling in respect
of the following questions :
(1) Whether the transaction of printing of content provided by the cus-
tomer, on Poly Vinyl Chloride (PVC) banners and supply of such
printed trade advertisement material is supply of goods?
(2) What is the classification of such trade advertisement material if the
transaction is supply of goods?
(3) What is the classification and applicable rate of CGST on the supply
of such trade advertisement material if the transaction is that of
supply of service?
Applicant’s interpretation of law :
7. The applicant, quoting the definition of ‘movable property’ contends
that their supply, i.e. printed trade advertising material, amounts to supply of
goods, which are freely movable from one place to another, thereby becomes
‘movable property’ and consequently falls under the ambit of ‘goods’ in terms of
Section 2(52) of the CGST Act, 2017. Further the title of the impugned material is
being transferred and hence the supply amounts to supply of ‘goods’ in terms of
Section 9 of the CGST Act, 2017. The applicant intend to place reliance on the
TRU Circular No. 11/11/2017-GST, dated 20-10-2017, specifically para 5.
8. The applicant further contends that the supply of trade advertise-
ments involves multiple supplies & hence amounts to ‘composite supply’, and
endeavours to support their claim by quoting many case laws/circulars etc., con-
cluding that their activity is a composite supply where the principal supply is of
goods, in terms of Section 8 of the CGST Act, 2017.
9. The applicant, with regard to the classification of their supply, on

GST LAW TIMES  26th March 2020  213