2022 (9) TMI 369 - AAR - GST

Classification of supply - supply of goods or supply of services - job-work - printing on duplex board belonging to its customer including cutting, punching and lamination, as and when required by the customer - rate of GST - HELD THAT - The activities undertaken by the applicant for printing on duplex board belonging to its customer including cutting, punching and lamination, as and when required by the customer, shall be treated as services by way of job work in relation to printing of all goods falling under Chapter 48 where the customer is registered under the GST Act. In cases where the customer is not registered under the GST Act, the same shall be treated as services by way of any treatment or process on goods belonging to another person, in relation to printing of all goods falling under Chapter 48. However, in both the cases, the applicable rate of tax would be 12% as specified at items (ia)(b) and (iia) respectively under entry no. 26 of Notification No.11/2017-Central Tax (Rate) dated 28.06.2017 corresponding West Bengal Tax Notification No. 1135 F.T. dated 28.06.2017), as amended form time to time. Supply of services for printing on duplex board belonging to the recipient including cutting, punching and lamination of the duplex board, so printed, would attract tax @ 12% irrespective of the recipient of the services is registered under the GST Act or not.

Summary

Issues involved:
1. Applicability of GST rate on works contract (job work) involving printing on duplex board.

Analysis:
1. The applicant, engaged in manufacturing printed materials, sought an advance ruling on the GST rate applicable to their works contract involving printing on duplex board.
2. The applicant carries out printing, lamination, cutting, and related activities on duplex board received from customers.
3. The question raised falls under clause (a) of sub-section (2) of section 97 of the GST Act and has not been previously decided by any authority.
4. The revenue officer raised no objections, leading to the admission of the application.

2. Submission of the Applicant:
1. The applicant clarified that job work services to registered persons are taxed at 12% and at 18% for unregistered persons.
2. The applicant charges tax accordingly based on Circular 126/45/2019-GST.

3. Submission of the Revenue:
1. The revenue officer did not provide any specific view on the issue raised by the applicant.

4. Observations & Findings of the Authority:
1. The Authority examined the applicant's activities and determined them to be services based on Schedule II of the GST Act.
2. The definition of 'job work' under clause (68) of section 2 involves treatment or processing on goods belonging to another registered person.
3. The applicable tax rate for job work services related to printing is specified in Notification No.11/2017-Central Tax (Rate).
4. The Authority concluded that the applicant's activities constitute services by way of job work in relation to printing on duplex board, attracting a tax rate of 12%.
5. The ruling stated that regardless of the recipient's GST registration status, the tax rate for such services would be 12%.

This detailed analysis provides a comprehensive overview of the legal judgment regarding the applicability of GST rates on works contracts involving printing on duplex board.