PHOTO PRODUCTS COMPANY PVT. LTD.

The Applicant is engaged in printing content supplied by the customers on photographic paper. 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 and are then supplied as printed pictures and photographs.

The Applicant has sought Advance Ruling on "Whether it is supply of goods or service and is taxable under HSN 4911 or SAC 9989"?

Transfer of the title in goods is a supply of goods as per Paragraph no. 1(a) of Schedule II to the GST Act. Hence, transfer of ownership is an essential condition for supply of goods.

However the photo prints supplied by applicant 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. therefore, cannot be said to be classifiable under heading 4911 of the Tariff Act.

The Applicant is providing a service, namely, the service of printing and is liable to be classified under SAC 9989.

Crux: The activity carried out by the Applicant “printing of photographs from media” is classifiable under SAC 9989 and is taxable at 12% under Serial No. 27(i) of Notification No. 11/2017 – Central Tax (Rate).