In re Coronation Arts Crafts (GST AAR Tamilnadu)
18% GST applicable on the supply of Printed Leaflet on own paper and materials
The AAR, Tamil Nadu in the matter of M/s. the Coronation Arts Crafts [Order No.19/ARA/2022 dated May 31, 2022] has held that the supply of printed leaflets on paper and materials of the Supplier of the content provided by the Recipient is a composite supply as defined under Section 2(30) of the Central Goods and Services Tax Act, 2017 (“the CGST Act”) with ‘Supply of service of printing’ as the principal supply with the 18% applicable GST rate.
Facts:
M/s. the Coronation Arts Crafts (“the Applicant” /”the Supplier”) is the manufacturer and supplier of printed leaflet product to M/s. Hindustan latex Ltd (“the Recipient”), a Government of India enterprise, by using their paper and ink, who in turn supplies the leaflet product along with their own manufactured product. The leaflet product is supplied by the Applicant to the Recipient charging 12% of the Integrated Goods and Services Tax (“the IGST”) classifying the supply under SAC Heading 9989. It informed that some other suppliers are supplying such printed leaflet product charging 5% IGST classifying the same as supply of goods under Chapter Heading 4901 of the Customs Tariff Act, 1975 (“the Customs Tariff Act”).
The Applicant contented that, the supply of printed leaflet constitutes as a mixed supply. Further, relied on the Circular No. 11/11/2017-GST dated October 20, 2017 (“the Circular”) issued w.r.t. the clarifications on taxability of printing contracts.
Issues:
