Page 135 - GSTL_30th April 2020_Vol 35_Part 5

2020 ] IN RE : DEPARTMENT OF PRINTING, STATIONERY AND PUBLICATIONS 621
ence to the CGST Act would also mean a reference to the same provisions under
the KGST Act.
8.3 The applicant is a printing press under the Government of Karna-
taka, catering to the printing needs of various departments of Karnataka Gov-
ernment, Government of India, High Court of Karnataka and other autonomous
bodies/corporations. The applicant seeks advance ruling in respect of the ques-
tions mention at para 6 supra. It could be seen that the applicant’s activities are
predominantly concerned with printing. In this regard we draw attention to the
Circular No. 11/11/2017-GST, dated 20-10-2017, wherein clarification on taxabil-
ity of printing contracts has been issued.
8.4 Para 2 of the circular clarifies that supply of books, pamphlets, bro-
chures, 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 com-
posite supplies and the question, whether such supplies constitute supply of goods or ser-
vices would be determined on the basis of what constitutes the principal supply.
8.5 The principal supply, in terms of Section 2(90) of CGST Act, 2017, is
supply of goods or services which constitutes the predominant element of com-
posite supply and to which any other supply forming part of that composite
supply.
8.6 Para 4 of the circular specifies that in the case of printing of books,
pamphlets, brochures, annual reports, and the like, the 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/SAC
9989, subject to the following conditions namely
(a) The content is supplied by the publisher or the person who owns
the usage rights to the intangible inputs.
(b) The physical inputs including paper used for printing belong to the
printer.
8.7 Para 5 of the circular specifies that in the case of supply of printed
envelopes, letter cards, printed boxes, tissues, napkins, wall paper etc., falling
under Chapter 48 or 49, printed with design, logo etc., supplied by the recipient
of goods but made using physical inputs including paper belonging to the print-
er, predominant supply is that of goods and the supply of printing of the content
[supplied by the recipient of supply] is ancillary to the principal supply and
therefore such supplies would constitute supply of goods falling under respec-
tive headings of Chapter 48 or 49 of the Customs Tariff.
8.8 In the light of the aforesaid circular, we proceed to examine the is-
sues and related questions, one at a time. The Applicant submits that they are
engaged in rendering the services of printing the printed materials & printing of
text books to various Government departments. The contents of the printed ma-
terial are provided by recipients. The nature of supply, as admitted by the appli-
cant, includes Printing & Supply of State Budget Documents, Printing of Text
books to Government departments, Training manuals, other books, calendars,
Journals, Flags & posters, Karnataka Examination Authority Information Book,
other Forms, Award certificates, Measurement Book, Employment Cards, Com-
pendium, manuals, Reports (RTI, Annual & Performance & Compendium) Audit
accounts, Annual & Performance, Compendium, Receipt Books, Challans, Paper
Testing Reports, Legislative Assembly & Council Debates, Lists, Bills & Bro-
chures, Various Types of Registers & Forms, Karnataka Civil Service Rules.
GST LAW TIMES  30th April 2020  135