Case Law Details
In re Pattabi Enterprises (GST AAR Karnataka)
In the instant case the applicant is engaged in printing the content supplied by the recipient using their own physical inputs including paper, ink etc. Since there is involvement of rights to stay in the temple precincts attached to the card and other involvement of privileges and can only be issued by the recipient of supply of ‘Access Cards’, the same is to be treated as Composite supply with the supply of services being the principal supply. Therefore such supplies would constitute supply of service falling under heading 9989 of the scheme of classification of services. Section 8(1)(a) of the Central GST Act clearly mandates that in case of a composite supply comprising of two or more supplies, where one of these supplies is the principal supply, such composite supply shall be treated as a supply of such principal supply. The supply made by the applicant thus amount to a supply of service and not supply of goods, as envisaged by the applicant.
The supply of the applicant is covered under the Serial No. 27 of Notification No.11/2017 – Central Tax (Rate) dated 28.06.2017 and is liable to tax at 9% under the CGST Act. Similarly the supply is liable to tax at 9% under the KGST Act. Interstate supply of such supplies would be liable to tax at 18% under the IGST Act.
The supply of ‘access cards”, and similar material printed by the applicant with the contents supplied by the recipient of supply are classifiable under SAC 9989 and liable to tax under CGST at 9% , KGST at 9% and at 18% under the IGST Act.
Also Read AAAR Order- GST on Access Card printed & supplied based on contents provided by customers
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