In re Macro Media Digital Imaging Private Limited (GST AAR Andhra Pradesh)
1. Whether the transaction of printing of content provided by the customer, on poly Vinyl Chloride banners and supply of such printed trade advertisement material is supply of goods?
The applicant in the instant case takes up the supply of trade advertising material by procuring the required raw materials such as poly vinyl, flex, paper, cloth printing inks etc., all by themselves based on specification provided by the client in terms of design, size and material. In-fact, the applicant transfers the title in the goods i.e., printed material on flex to the customer. As per Section 7 of CGST Act, 2017 read with Schedule – II Sl.No. 1(a) of CGST Act, 2017 which reads as under:
” 1. Transfer
a) any transfer of the title in goods is a supply of goods. ”
From the plain reading of the above, it is obvious that the applicant is transferring the title in goods to his customers in the form of trade advertising material and it constitutes supply of goods only.
2. What is the classification of such trade advertisement material if the transaction is a supply of goods?
When we look into the rate of tax of the goods under dispute, i.e., the trade advertising materials is classifiable vide Notification N0. 1/2017 – Central Tax (Rate) dt: 28.06.2017 under Sl.No.132 under HSN code 4911 and attracts tax rate of 12% (CGST 6% +SGST 6%)
