Page 134 - GSTL_20th August 2020_Vol 39_Part 3

348 GST LAW TIMES [ Vol. 39
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 printed flex material and it
amounts to nothing but supply of goods only.
Further, when we look into the rate of tax of the goods under dispute,
i.e., the supply of print on flex 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, nap-
kins, 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 recipient of supply] is ancillary to the prin-
cipal 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 What is the classification and GST for post- 1. These items fall
ers with photographs/images etc. printed under HS code 4911
on Digital Printers on coated cotton/mix and attract 12% GST.
canvas media or other synthetic media?

8. As far as the third question is concerned, the applicant did not sub-
mit any specific details pertaining to the question that what would constitute
commercial/non-commercial in the context of trade as mentioned by him. Nev-
ertheless, the supplier of the goods i.e., applicant in this context shall levy and
collect tax from the recipients for the taxable supplies made by him as per the
classification of the goods and tax rates as specified in the notifications of the
CGST/APGST Act, 2017 from time to time as amended.
RULING

Question 1 : Whether supply of print on flex is classifiable as supply of
goods or service?
Answer 1 : The supply of print on flex is classified under Goods only
as per Section 7 of CGST Act, 2017 read with Schedule-II
Sl. No. 1(a) of CGST Act, 2017
Question 2 : If yes, whether falls under HSN 4911 under Entry No. 132
of Schedule II of Notification No. 1/2017-C.T. (R)?
Answer 2 : It is classifiable vide Notification No. 1/2017-Central Tax
(Rate), dated 28-6-2017 under Sl. No. 132 Chapter/
Heading/Sub-Heading/Tariff Item 4911 and attracts tax
rate of 12% (CGST 6% + SGST 6%).
Question 3 : If answer to question 2 is yes, whether supply of print on
flex non-commercial purpose is also classifiable under
HSN 4911 under Entry No. 132 of Schedule-II of Notifica-
tion No. 1/2017-C.T. (R)?
GST LAW TIMES  20th August 2020  134