Page 150 - GSTL_13th August 2020_Vol 39_Part 2

236 GST LAW TIMES [ Vol. 39
dated in the image printer, the Applicant prints the images/written
text in patches and later joins the said patches to make the full trade
advertisement.
(c) Supply of such printed trade advertisement to the shipping address
mentioned in the purchase order.
3.6 It is to be specifically noted that designing and graphics of the ad-
vertisements are not done by the Applicant. The Applicant is provided with the
designed trade advertisements by the customers. The Applicant merely sources
the desired PVC material (blank) from independent supplier and undertakes the
activity of printing on the material.
3.7 That billing format of the invoices raised by the Applicant on the
customers is such that in the description field, Applicant specifies charges on two
accounts i.e. ‘printing’ and ‘supply’, wherein the former represents the service
activity of printing carried out by the Applicant and latter represents the physical
supply of printed trade advertisements on the PVC material.
Pre-GST regime :
3.8 That under the erstwhile Value Added Tax (hereinafter referred to
as ‘VAT’) regime, the Applicant was paying VAT on the transaction of printing
and supply of the trade advertisements. However, under different States, the
nature of such transaction varied from ‘pure sale’ transaction to a transaction of
‘works contract’. The State-wise status of such transactions wherein Applicant
had VAT registration is as under :-

S. No. State Nature of Transaction
1. Telangana Works Contract
2. Tamil Nadu Pure Sale
3. Maharashtra Works Contract
4. Uttar Pradesh Pure Sale
5. Karnataka Pure Sale
6. West Bengal Works Contract
7. Kerala Pure Sale
8. Andhra Pradesh Works Contract

3.9 That on the transaction of supply of such trade advertisements to its
customers, the Applicant was paying applicable VAT to respective State Gov-
ernment exchequer. However, in States where the subject transaction of printing
and supply of trade advertisements was considered as ‘works contract’, the Ap-
plicant was not charging any service tax, as it is settled position of law that pro-
cess of printing on PVC material (blank) to make such PVC material in form of
advertisement, is an activity amounting to ‘manufacture’. Further, in terms of the
Central Excise Tariff Act, 1985 (hereinafter referred to as ‘CETA’), the traded ad-
vertisements manufactured by the Applicant were classifiable under Chapter
Heading (hereinafter referred to as ‘Heading’) 4911, under which all the products
were exempt from the payment of the duty of excise as the rate of duty in col-
umn 4 of Heading 4911 was ‘NIL’.
The applicant had filed an application in Form GST ARA-01, dated 14-8-
2019, by paying required amount of fee for seeking Advance Ruling on the fol-
lowing issues, as mentioned below.

GST LAW TIMES  13th August 2020  150