Page 133 - GSTL_20th August 2020_Vol 39_Part 3

2020 ] IN RE : SREE & CO. 347
6. Record of personal hearing :
Sri Ashish Kumar Agrawal, the authorized representatives of the appli-
cant appeared for Personal Hearing on 18-9-2019 and they made further addi-
tional submissions. The applicant submits that the flex material procured by
them falls under HSN 3921 90 26 in rolls. Sample copies of purchase invoices
along with physical sample of raw material is submitted at the time of Personal
Hearing. The applicant further made the following submissions.
Additional submissions :
The applicant submitted that they make the following two types of busi-
ness transactions as per the requirement of the customers.
(a) Customer brings the design on their Pen drive/Disk or e-mail and
the applicant just gets the same printed on the media flex and give
the delivery of material. The customer will be charged for printed
flex.
(b) In few cases, customer gives his idea and the applicant makes the
design, after approval from customer get the same on the media.
The customer will be charged for design charges and printed flex.
Considering the same as composite supply they charge the same at
rate of flex they are charging.
The applicant submitted that they had been so far collecting and paying GST @
18% under residual entry at the same HSN and Rate at which raw material is
procured i.e. HSN 3921. The HSN 4911 covers other printed material, including
printed pictures and photographs such as Trade advertisement material, com-
mercial catalogues and like, printed posters, commercial catalogues, printed in-
lay cards, pictures, design and photographs, plan and drawings for architectural
engineering industrial, commercial topographical or similar purpose reproduced
with the aid of computers or other devices.
Further, the applicant refers to Circular F. No. 332/2/2017-TRU issued in
December, 2017 at Entry No. 59, (the same was clarified by FAQ dated 29-9-2017)
wherein posters with photographs/image etc printed on digital printers on coat-
ed cotton/mix canvas media or other synthetic media are classified under Head-
ing 4911 and attract 12% GST. The applicant further submits that flex banners
printed by individual used for non-commercial purpose does not change the
classification in light of above referred circular.
7. Discussion and findings :
We have examined the issues raised in the application. The taxability,
classification issues, applicable rate of tax etc., for the goods and services sup-
plied or to be supplied, as governed under the provisions of respective GST Acts
are examined.
We look into the issue whether the supply of print on flex material is
supply of goods or services or both. The applicant in the instant case is engaged
in supply of printed flex material and the raw materials of the goods in questions
are completely procured by the applicant himself. Immaterial of the fact that
whether the content is supplied by the customer or it is designed by the applicant
himself basing on the requirement of the customer, 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.”
GST LAW TIMES  20th August 2020  133