Page 156 - GSTL_13th August 2020_Vol 39_Part 2

242 GST LAW TIMES [ Vol. 39
(22) The Applicant also states that had the customer only wanted to
avail printing services from the Applicant, customer would have
purchased PVC material (blank) from external source itself to avoid
commercial margin of Applicant and provided the same to the Ap-
plicant for merely printing. However, such is not the case in the
transactions effected by the Applicant. Undisputedly, the Applicant
is supplying complete trade advertisement which includes PVC ma-
terial and printed images/text/trade monograms on such PVC ma-
terial; This fact also goes on to establish that transactional arrange-
ment between the Applicant and customer was always to supply
and receive goods in form of trade advertisements.
(23) In view of the foregoing, it is submitted that pre-dominant supply
in the composite supply of trade advertisement is supply of ‘goods’
by the Applicant to its customers.
(24) The Applicant also submits that element of printing is ancillary to
the composite supply of trade advertisements. The Applicant sub-
mits that design of image/text/trade monograms to be printed on
the concerned trade advertisement is provided by the customer and
Applicant has no role to play in designing/alteration of the same.
Mere work to be carried out by the Applicant is to load such im-
age/text/trade monograms on the computer controlled digital im-
age printer and to take out prints on the PVC material (blank). The
Applicant does not employ any skill for provision of service of
printing for the customer. Hence, the Applicant is essentially sup-
plying goods in form of trade advertisement to the customer and
not services of printing.
(25) In view of the foregoing, it is stated that in the subject transaction,
supply of ‘goods’ in form of trade advertisement is the ‘principal
supply’ and printing is ‘ancillary’, to the dominant supply of goods
in form of trade advertisement.
Determination if the composite supply is supply of goods or services.
(26) Section 8 of the CGST Act provides for determination of tax liability
on composite and mixed supply and reads as under :-
“8. The tax liability on a composite or a mixed supply shall be de-
termined in the following manner, namely :-
(a) a composite supply comprising two or more supplies, one of which is
a principal supply, shall be treated as a supply of such principal sup-
ply; and
(b) a mixed supply comprising two or more supplies shall be
treated as a supply of that particular supply which attracts the
highest rate of tax”.
(27) As per Section 8, it is ‘principal supply’ which should form the basis
of determination of tax treatment of the ‘composite supply’. In view
of the submissions made above, it is evident that in the instant
transaction ‘principal supply’ is that of supply of trade advertise-
ments which are ‘goods’. Hence, in the present transactions, Appli-
cant is making supply of ‘goods’ to the customers. Hence it is the
understanding of the Applicant that the trade advertisements sup-
plied by it to customers tantamount to supply of ‘goods’.
GST LAW TIMES  13th August 2020  156