2018 (6) TMI 38 – AUTHORITY FOR ADVANCE RULING – WEST BENGAL – 2018 (13) G. S. T. L. 337 (A. A. R. – GST), [2018] 2 GSTL (AAR) 59 (AAR) – Classification of supply – Activity of Printing content supplied by the customers on photographic paper – whether it is supply of goods or service and whether the activity carried out by the Applicant is taxable under HSN 4911 or SAC 9989? – Held that:- Supply of printed pictures and photographs and similar items, reproduced with the aid of computer or any other device, is classifiable under Heading 4911 of the First Schedule of the Custom Tariff Act, 1975 which is aligned to the GST Act for the purpose of classification.
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The photo prints supplied by them to their customers are not marketable commodities in the open market and as goods they have no value to persons other than the specific customer who provides the input content. Hence, it is clear that, the printed material have no value as independent goods – The Applicant, therefore, cannot
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dmissible on this question under section 97(2)(a) of the CGST/WBGST Act, 2017 (hereinafter the GST Act). The Applicant also declares that the issue raised in the application is not pending or decided in any proceedings under any provisions of the GST Act. The officer concerned raises no objection to the admission of the application. The Application is, therefore, admitted. 2. According to the Applicant, the customers who wish to publish posters, pictures, photographs, design layouts etc. provide the content as files on digital media such as CD, DVD, HDD or pen drive. The file is transferred to the printer through a computer and the printer exposes the contents of the file on to the photographic paper. Digital images so obtained on light sensitive photographic paper are further processed in photographic chemical. This activity from printing to processing is done either with Fuji Frontier Digital Minilab by means of laser exposure or with Durst Theta 76 HS Digital Printer by means of LED
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aterials or prints which are supplied as such. It, however, appears from the application and the argument of the Applicant at the time of Personal Hearing that the content of the printed matters referred to above, is not being supplied, but only printing service is being provided to the customers. In other words, the content of the printed matter is specific to the customer, and, neither is the matter pre-printed, nor has the Applicant any ownership to the content at any point of time, and, therefore, cannot transfer title of the above printed matters. Transfer of the title in goods is a supply of goods [Paragraph no. 1(a) of Schedule II to the GST Act]. Hence, transfer of ownership is an essential condition for supply of goods. The photo prints supplied by them to their customers are not marketable commodities in the open market and as goods they have no value to persons other than the specific customer who provides the input content. Hence, it is clear that, the printed material have
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