M/s. MACRO MEDIA DIGITAL IMAGING PRIVATE LIMITED

The Applicant is engaged in the business of manufacturing and sale of digital printed materials wherein customers specify the designs and other specifications to be printed but all the required material are procured by the applicant only.

The Applicant has sought Advance Ruling on the following issues:

1. Whether the printed advertisement materials classifiable as supply of goods?
2. Whether it is classifiable under chapter heading 4911 of first schedule to Customs Tariff Act, 1975?

Applicant submitted that printed trade advertising materials is freely movable from one place to another thereby it becomes "movable property‟ and consequently falls under the ambit of "goods‟. Also as per section 9 of CGST Act read with Schedule II provides that “any transfer of the title in goods is a supply of goods”. Therefore, supplying of printed advertisement materials amounts to supply of "goods‟.

Applicant further submitted that 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‟. Accordingly rate of tax is determined as per Notification No. 1/2017 Central tax (rate) under Chapter 49 HSN 4911 @ 12% and not under Notification No. 11/2017 Central tax (rate) amended vide Notification No. 31/2017 Central tax (rate).

Authorized Representative submitted that printed trade advertising materials (i.e. Banner flex), which is freely movable from one place to another becomes "movable property‟ and consequently falls under the ambit of "goods‟ under Section 2(52) supported vide Schedule II and Circular 11/11/2017.

Also printed advertisement materials is being used for trade advertising and not covered under any other heading of Chapter 49 thereby falls under the chapter heading 4911 of Customs Tariff Act, 1975 supported by Chapter note 5 and hence taxable @ 12%.

Crux-  1. The printed advertisement materials manufactured and supplied by the applicant are classifiable as ‘supply of goods’.
2. The printed advertisement material are classifiable under chapter heading 4911 of the GST Tariff and the rate of tax applicable is 6% CGST + 6% SGST as given in the Notification No. 1/2017 – Central Tax (Rate) dated 28.06.2017,(G.O.Ms No. 110, Revenue (CT-II) Department, Dt. 29-06-2017).