In a meeting with the Ministry of Finance earlier this month, the All India Federation of Master Printers (AIFMP) sought clarity on the rates of GST applicable to printed products. As per the discussion with GST Council, AIFMP has announced new clarifications as follows:
“When the printing units are using contents given by the customer, according to the department, they are prima facie engaged in producing customised printed materials and would be treated under “Supply of services” and would be subjected to GST rates as per Serial No.26 & 27 of Notification 11 – Central Tax (Rates) dated 28-06-2017. It is only when the content and inputs are both belonging to the printer, it will be ‘supply of goods’ subjected to GST as per HSN Codes & rates given in Notification 1 – Central Tax (Rates) dated 28-06-2017.”
On the clarifications above, Sign Printing Industries Association also wish to clarify the GST applicability on the printing and signage products are as follows:-
1) As per the Serial No S 26 & 27 of Notification -11 –Central Tax rates dated on 28-06-2017, all kinds of customised printed materials, wherein design owned by the customer, are treated as “Supply of Printing Services” and the tax rate @18% using the SAC code: 998912. The same tax code is applicable even when you add services or goods into it, as per composite supply rule. Examples are installation of printing, Installation of printing with all types of fabrication including lit signage and non-lit signage.
2) For non-printed signage like aluminium composite panel boards with LED Acrylic letters would also attract the same logic wherein the content or design given by the customer, customised for customer and will be treated as service.
The suitable GST rate will be 18% under “Installation Services” using the SAC code: 998731. In the above cases the content of the Printing and Signage Branding is supplied by the customer with their specific needs. Hence the GST rates are fixed for all the services are @ 18% for SAC codes: 9989 – Supply of Printing Services and SAC Code: 9987 –Supply of Installation Services.