Supply Of Printed Leaflet Product As Per Content Supplied By Recipient Is A "Composite Supply": AAR

The applicant is one of the suppliers of printed leaflet products to M/s. Hindustan Latex Ltd, a government of India enterprise, who in turn supplies the leaflet product along with their own manufactured rubber product, namely "Condemn". The leaflet product is supplied by their unit to the customer, charging 12% IGST and classifying the supply under SAC heading 9989. Their customer informed them that other suppliers charge 5% IGST on such printed leaflet products, classifying the transaction as a supply of goods under Chapter heading 4901 of the GST Tariff Act 2017.

The applicant has sought an advance ruling on the issues in respect of the classification and the applicable rate of GST on the supply of printed leaflet products.

The AAR noted that the predominant activity is printing the contents of the customer in the required tangible inputs sourced by the applicant as per the requirements of the recipient. The principal supply in the considered transaction is "Supply of Service".

The AAR observed that the supply in hand is a composite supply with the principal supply being 'Supply of Printing Service'. The supply of printing services on paper is classifiable under SAC 998912.

"The applicable rate of tax effective from 1st October 2021 is CGST @9% as per SI.No.27 of Notification No. 11/2017 CT(Rate) Dated 28.06.2017 as amended and SGST @9% as per SI.No. 27 of Notification G.O. (Ms) No. 72 dated 29.06.2017 No.II(2)/CTR/532(d-14) as amended," the AAR said.

Applicant's Name: Coronation Arts Crafts

Citation: Advance Ruling No. 19/AAR/2022

Dated: 31/05/2022

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