In re Maxgrade Private Limited (GST AAR Rajasthan)
The Authority for Advance Ruling (AAR), Rajasthan, examined the classification of three customized, made-to-order photo products manufactured and supplied by the applicant under the GST regime. The application was admitted under Section 97(2) of the GST Act, covering issues relating to classification of goods and determination of tax liability. No proceedings were pending against the applicant under Section 98(2) of the CGST/RGST Act, 2017.
The applicant is engaged in manufacturing customized photo products using high-resolution UV printing technology. The products under consideration were:
1. UV Printed Acrylic Photo Frame
2. UV Printed Acrylic Wall Clock
3. MDF Keychain with Printed Photo
The applicant contended that although the products are made using plastic (acrylic) or wood (MDF), they are marketed as personalized photo memorabilia and gifts. Therefore, classification should consider the end-use and customization rather than merely the base material.
UV Printed Acrylic Photo Frame
The applicant classified this product under HSN 39269099 (Other articles of plastics) and sought clarification whether it should instead fall under Chapters 49 or 97 as a decorative printed article or personalized photo product.
The AAR examined Chapter 39 (Plastics and articles thereof), Chapter 49 (Printed books, newspapers, pictures and other products of the printing industry), and Chapter 97 (Works of art, collectors’ pieces and antiques), along with relevant Chapter Notes and Explanatory Notes.
