Case Law Details
In re lnfobase Services Pvt Ltd. (GST AAR West Bangal)
Applicant is making a bundled supply to the Club of printing service and intermediary service for selling space for advertisement on behalf of the Club and charging a single price for the bundle as the project cost for printing. The two services are not naturally bundled or supplied in conjunction with each other in the ordinary course of business. They are bound by an obligation discussed above and is a specific feature of the agreement between the Applicant and the Club. It is, therefore, not a composite supply.
Supply by a taxable person of a bundle of services at a single price, if it does not constitute a composite supply, is a mixed supply within the meaning of section 2 (74) of the GST Act. It should, therefore, be treated as supply of that service which attracts the highest rate of tax [section 8 (b) of the GST Act].
Selling of space for advertisement, when made as an intermediary, is classifiable under SAC 998362, which excludes sale of advertising space in print media (SAC 998363) and is taxable @ 18% under SI No. 21(ii) of the Rate Notification. Service by way of printing (SAC 998912) of all goods falling under Chapter 48 or 49 of the First Schedule of the Customs Tariff Act, 1975 (where the physical inputs are supplied by the printer) is taxable @ 12% under SI No. 27 (i) of the Rate Notification. The mixed supply of the Applicant should, therefore, be treated taxable under SI No. 21 (ii) of the Rate Notification.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, WEST BANGAL
Please become a Premium member. If you are already a Premium member, login here to access the full content.
