IN RE: M\/s. Macro Media Digital Imaging Private Limited
GST
2018 (6) TMI 519 – AUTHORITY FOR ADVANCE RULING HYDERABAD TELANGANA – 2018 (14) G. S. T. L. 97 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING HYDERABAD TELANGANA – AAR
Dated:- 30-5-2018
A. R. Com\/5\/2017 – 4\/2018
GST
Sri J. Laxminarayana, Additional Commissioner (State Tax) And Sri V. Srinivas, IRS, Joint Commissioner (Central Tax)
\nORDER
\n1. M\/s. Macro Media Digital Imaging Private Limited, Charlapally, Hyderabad (GSTIN No.36AABCM9451F1ZF) has filed an application in Form GST ARA-01under Section 97(1) of TGST Act,2017 read with Rule 103 of CGST\/TGST Rules, 2017and sought Advance Ruling on the following issues:-
\n(i) Whether the printed advertisement materials classifiable as 'supply of goods?
\n(ii) If yes, whether it is classifiable under chapter heading 4911 of first schedule to Customs Tariff Act, 1975?
\n2. The applicant submitted the application in Form GST ARA-01 and Statement containing the applica<\/p>\n
= = = = = = = =<\/p>\n
Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ch printed material would be undertaken as per the customer specification wherein customers specify the sizes of the advertising material, location of the advertising material to be displayed etc. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n f CGST Act, 2017 (which was made applicable to IGST) and also under Section 7 of TGST Act, 2017. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n the term 'movable property' in GST law. Therefore the definition given under the provisions of General Clauses Act, 1897 can be adopted which reads as under :- = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n nt submits that TRU Circular No. 11\/11\/2017-GST dated 20-10-2017 clarified the taxability of printing contracts wherein vide Para 5 it was clarified that printing contracts similar to the instant case constitute 'Supply of goods'. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n catalogues, Printed inlay cards, Pictures, designs and photographs, Plan and drawings for architectural engineering, industrial, commercial, topographical or similar purposes reproduced with the aid of computer or any other devices. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n first schedule to Customs tariff Act, 1975? = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n 01\/2017 – State Tax (R) dt. 29-06-2017 as amended. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" IN RE: M\/s. Macro Media Digital Imaging Private LimitedGST2018 (6) TMI 519 – AUTHORITY FOR ADVANCE RULING HYDERABAD TELANGANA – 2018 (14) G. S. T. L. 97 (A. A. R. – GST)AUTHORITY FOR ADVANCE RULING HYDERABAD TELANGANA – AARDated:- 30-5-2018A. R. Com\/5\/2017 – 4\/2018GSTSri J. Laxminarayana, Additional Commissioner (State Tax) And Sri V. Srinivas, IRS, … Continue reading “IN RE: M\/s. Macro Media Digital Imaging Private Limited”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-12140","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/12140","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=12140"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/12140\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=12140"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=12140"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=12140"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\n(iv) Except specifying the specifications and designs to be printed, clients\/customers of Applicant does not provide any materials and all required materials for the preparation of the advertisement materials are procured by Applicant only.
\n(v) Applicant also recovers the cost incurred towards transportation, installation, packing etc.
\n(vi) In pre-GST regime, Applicant had been paying applicable VAT and filed returns accordingly.
\n4. The applicant has also filed statement containing the Applicants interpretation of law and\/or facts as the case may be, in respect of the question on which Advance Ruling is sought for in Annexure-II as under:-
\na. That M\/s Macro Media Digital Imaging Private Limited (herein after referred to as the Applicant) are engaged in the business of printing and sale o<\/p>\n
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\ne. Applicant understands that above referred GST law has prescribed different rates on different goods\/services and also has different provisions relating to time of supply, place of supply for goods and services. Owning to this, the classification as goods or services is required to be done. After classifying a product\/supply as goods\/services, further step involved is arriving at the rate of tax as the rates are different even among goods or services.
\nf. The word 'goods' is defined under Section 2(52) of CGST Act, ibid which is extracted below :-
\n i. “(52) “goods” means every kind of movable property other than money and securities but includes actionable claim, growing crops, grass and things attached to or forming part of the land which are agreed to be serviced before supply or under a contract of supply”
\n ii. Similarly the word 'services' is defined u\/s 2(102) of C<\/p>\n
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\n i. “(36) “movable property” shall mean property of every description, except immovable property;
\n ii. (26) “immovable property” shall include land, benefits to arise out of land, and things attached to the earth, or permanently fastened to anything attached to the earth;”
\ni. As seen from the above, 'movable property' covers all properties except 'immovable property'. Therefore, if the property does not fall under the definition of 'immovable property', then same falls under the scope of 'Movable property'. The term 'Immovable property' includes land, benefits to arise out of land and things attached to the earth or fastened to the earth.
\nj. Further, the settled legal position under the provisions of Central Excise as well as sales tax is that things which are capable of being<\/p>\n
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\no. Accordingly, rate of tax shall be determined as per CGST Notification No. 1\/2017 -Central Tax (Rate) dt. 28-06-2017 (corresponding Notification No. 1\/2017 -State Tax (Rate) dt. 29-06-2017 for SGST rate and also 1\/2017 – Integrated tax (Rate), dt. 28-06-2017 for IGST rate).
\np. On perusal of the above notifications, Applicant understands that the goods have been categorized under six schedules based on description and HSN where each schedule is attracting different rate of tax.
\nq. In term of explanation (iii) and (iv) to Notification No. 1\/2017 – Central Tax (Rate) dt. 28-06-2017, tariff heading, sub-heading, heading and chapter shall mean respectively a tariff item, sub-heading, heading and chapter as specified in the First Schedule to the Custom<\/p>\n
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\ns. As the instant case of supplying printed advertisement materials are used for trade advertising and not covered under any other heading of chapter 49, Applicant understands that same will fall under the heading 4911 which is liable for GST at the rate of 12%.
\nt. The above understanding was also supported by chapter note 5 to Chapter 49 of Customs Tariff Act, 1975 which reads as under :-
\n i. “Subject to Note 3 to this Chapter, heading 4901 does not cover publications which are essentially devoted to advertising (for example, brochures, pamphlets, leaflets, trade catalogues, year books published by trade associations, tourist propaganda). Such publications are to be classified in heading 4911”.
\nu. Applicant understands that Notification No. 11\/2017 – <\/p>\n
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\n (iii) Any consequential questions that may arise during the hearing.
\n5. During personal hearing held on 03-04-2018 @ 3.00 P.M the Authorized Representative has presented their case and submitted that the printed advertisement materials are classifiable as Goods under Section 2(52) GST law and such Goods falls under Tariff Heading 4911 and liable to GST rate @ 12%. They filed further submissions as given below:-
\n(i) Applicant supplies the printed trade advertising materials (i.e. Banner flex), which is freely movable from one place to another thereby it becomes 'movable property' and consequently falls under the ambit of 'goods' under Section 2(52), ibid. Once anything falls under the ambit of 'goods' as defined under Section 2(52) of CGST Act, 2017 it does not become 'services' defined under section 2 (102) of CGST Act, 2017 and vice-versa. The above is further supported from :-
\n a. Sl. No. 1(a) of Schedu<\/p>\n
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\n6. As per Section 7 of CGST Act, 2017 read with Schedule-II Sl. No. 1(a) of CGST Act, “any transfer of the title in goods is a supply of goods”.
\nIn the instant case the applicant is engaged in the business of manufacturing and sale of digital printed materials, wherein preparation of such printed material would be undertaken as per the customers specification and except specifying the specifications and designs to be printed, clients\/customers of applicant does not provide any materials and all required materials for the preparation of the advertisement materials are procured by the applicant ,and the applicant is transferring the title in the goods i.e., printed advertisement materials. Therefore, instant case of supplying printed advertisement materials amounts to supply of 'goods' only.
\n7. Further, printed advertisement material are classifiable under Tariff heading 4911 in accordance with the rules for the interpretatio<\/p>\n
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