Page 154 - GSTL_16 April 2020_Vol 35_Part 3

368 GST LAW TIMES [ Vol. 35
3.3 Services by way of printing of the goods falling under Chapters 48
and 49 are classifiable under SAC 9989. The goods supplied, having no use other
than displaying the printed matter, is ancillary to the principal supply of print-
ing. At the same time, being a composite supply, the printing service is insepara-
ble from supply of the goods, namely the printed booklets. The place of supply
of the printed booklets will, therefore, be the place of supply of the printing ser-
vice. In other words, the place at which the printed booklets are delivered is the
place of supply of the composite printing service.
3.4 It appears from letter dated 15-11-2019 of the Applicant to Allaha-
bad Bank, submitted along with the written submission, that Hope Inc., USA,
pays consideration for supply of printed booklets to different destinations in In-
dia. The Applicant does not dispute the fact of such supplies, but argues, as dis-
cussed in para 2.2 above, that the person who receives the composite supply is
not necessarily the recipient when the supply involves payment of consideration.
3.5 The Applicant, while developing the above line of argument, fails
to appreciate the true meaning of the terms ‘recipient’, as defined under Section
2(93) of the GST Act. It is an exhaustive definition, implying it can neither be ex-
panded or reduced. In the context of a supply involving payment of considera-
tion, a ‘recipient’ of supply of goods or services means the person who is liable to
pay the consideration and any reference to a person to whom a supply is made
shall be construed as a reference to the recipient of the supply and shall include
an agent acting as such on behalf of the recipient in relation to the goods or ser-
vices or both supplied. The ‘recipient’ is, therefore, so defined as to make separa-
tion impossible between the person to whom the supply is made and the one
liable to pay the consideration. Of course, when no consideration is involved, as
under clause (c) of the above section, the recipient can only be the person to
whom the service is rendered. The person who receives the supply in India
should, therefore, be considered as the recipient, being inseparable from the for-
eign buyer as far as the Applicant’s supply is concerned.
3.6 It follows from the above discussion that the Applicant supplies the
composite printing service to the recipient located in India. Such supplies are not,
therefore, export of services within the meaning of Section 2(6) of the IGST Act,
2017. It is taxable under Sl. No. 27(i) of Notification No. 11/2017-C.T. (Rate), dat-
ed 28-6-2017 (corresponding State Notification No. 1135-FT, dated 28-6-2017) or
Sl. No. 27 of Notification No. 8/2017-I.T. (Rate), dated 28-6-2017, as the case may
be.
4. In view of the foregoing, we rule as under :
RULING
5. The Applicant’s supply of the composite printing service is taxable
under Sl. No. 27(i) of Notification No. 11/2017-Central Tax (Rate), dated 28-6-
2017 (corresponding State Notification No. 1135-FT, dated 28-6-2017) or Sl. No.
27 of Notification No. 8/2017-Integrated Tax (Rate), dated 28-6-2017, as the case
may be.
6. This Ruling is valid subject to the provisions under Section 103 until
and unless declared void under Section 104(1) of the GST Act.

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GST LAW TIMES  16th April 2020  274