Page 159 - GSTL_13th August 2020_Vol 39_Part 2

2020 ] IN RE : MACRO MEDIA DIGITAL IMAGING PVT. LTD. 245
6. Record of personal hearing :
Sri Bipin Verma, the authorized representatives of the applicant ap-
peared for Personal Hearing on 23-10-2019 and produced physical samples of the
materials and reiterated the written submissions.
7. Discussion and findings :
We have examined the submissions made by the applicant in their appli-
cation and the assertions made by the authorized representative as well at the
time of Personal Hearing.
We look into the first issue raised by the applicant i.e., whether the
transaction of printing of content provided by the customer, on Poly Vinyl Chlo-
ride banners and supply of such printed trade advertisement material is supply
of goods.
The applicant in the instant case takes up the supply of trade advertising
material by procuring the required raw materials such as poly vinyl, flex, paper,
cloth printing inks etc., all by themselves based on specification provided by the
client in terms of design, size and material. In fact, the applicant transfers the title
in the goods i.e., printed material on flex to the customer. As per Section 7 of
CGST Act, 2017 read with Schedule-II, Sl. No. 1(a) of CGST Act, 2017 which reads
as under :
“1. Transfer
(a) any transfer of the title in goods is a supply of goods.”
From the plain reading of the above, it is obvious that the applicant is transfer-
ring the title in goods to his customers in the form of trade advertising material
and it constitutes supply of goods only. Further, when we look into the rate of
tax of the goods under dispute, i.e., the trade advertising materials is classifiable
vide Notification No. 1/2017-Central Tax (Rate), dated 28-6-2017 under Sl. No.
132 under HSN Code 4911 and attracts tax rate of 12% (CGST 6% + SGST 6%).
Further, the same has been clarified in detail vide the clarification issued
under F. No. 354/263/2017-TRU, dated 20th October, 2017 in Circular No.
11/11/2017-GST. The excerpts of the circular i.e., para 5 is reproduced as under :
Subject : Clarification on taxability of printing contracts
5. In case of supply of printed envelops, 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 printer, predominant supply is that
of goods and the supply of printing of the content [supplied by the recipi-
ent of supply] is ancillary to the principal supply of goods and therefore
such supplies would constitute supply of goods falling under respective
heading of chapter 48 or 49 of the customs tariff.”
Moreover, the clarification provided in F. No. 332/2/2017-TRU, dated December,
2017, with the consolidated FAQ under Sl. No. 59 reiterates the same as under :

Sl. Queries Replies
No.
59 That is the classification and GST for post- These items fall under
ers with photographs/images etc. printed HS code 4911 and attract
on Digital Printers on coated cotton/mix 12% GST.
canvas media or other synthetic media?

GST LAW TIMES  13th August 2020  159