Page 132 - GSTL_20th August 2020_Vol 39_Part 3

346 GST LAW TIMES [ Vol. 39
(1) The applicant purchases flex material, inks etc., for delivery of flex
banners.
(2) Certain customers provide design to be printed on the flex banner.
(3) On customer requirement, the applicant provides design services
also and Print the same on flex banner and charge as consolidate
supply of flex banner.
(4) The applicant charges customer on per sq., feet basis on size of flex
banner printed by them.
(5) The customer does provide design, size and specification of matter
to be printed and does not provide any material. All the material
i.e., flex, ink, etc., are procured by applicant only.
(6) In pre-GST regime the applicant paid tax under works contract on
value of material only.
The applicant had filed an application in Form GST ARA-01, dated 4-6-2019, by
paying required amount of fee for seeking Advance Ruling on the following
issues, as mentioned below.
4. Questions raised before the Authority :
(1) Whether supply of print on flex is classifiable as supply of goods or
service?
(2) If yes, whether falls under HSN 4911 under Entry No. 132 of Sched-
ule-II of Notification No. 1/2017-C.T. (R)?
(3) If answer to question 2 is yes, whether supply of print on flex non-
commercial purpose is also classifiable under HSN 4911 under En-
try No. 132 of Schedule II of Notification No. 1/2017-C.T. (R)?
On Verification of basic information of the applicant, it is observed that the ap-
plicant falls under State jurisdiction, i.e. Assistant Commissioner (ST), Viziana-
garam West Circle, Vizianagaram Division. Accordingly, the application has
been forwarded to the jurisdictional officers with a copy marked to the Central
Tax authorities to offer their remarks as per the Section 98(1) of CGST/APGST
Act, 2017.
In response, no remarks are received from the jurisdictional officer con-
cerned regarding whether there are any proceedings lying pending or passed
relating to the applicant on the issue, for which the Advance Ruling sought by
the applicant.
5. Applicant’s interpretation of law and facts :
The applicant states that with the changed definition of works contract in
GST regime, now composite supply involving immovable property only falls
under works contract service. The applicant submits that as the flex banners
supplied by them are as per design or requirements of customers and same can-
not be used for any other purpose, the same falls under composite supply of
goods. The applicant further admits that they are paying tax @ 18% on supply as
goods under HSN code of major raw-material flex sheet 3921.
The applicant refers to the ruling passed by Hon’ble Telangana State Au-
thority for Advance Ruling by A.R.Com/5/2017, dated 30-5-2018 [2018 (14)
G.S.T.L. 97 (A.A.R. - GST)], in the similar matter, as supply of goods falling un-
der HSN 4911 and applicable at IGST of 12%. The applicant states that the pre-
sent advance ruling is sought whether it is applicable in their case confirming the
above ruling.
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