PRINTING OF PICTURES WILL ATTRACT 18% GST
The Goods and Services Tax Act,
2017 came into force in India with effect from 1.7.2017.
The Central Government has clarified that service
of “printing of pictures” falls under service code “998386: Photographic and
videographic processing services” and not under “998912:
Printing and reproduction services of
recorded media, on a fee or contract basis” of the scheme of
classification of service annexed to notification No. 11/2017-Central Tax(Rate)
dated 28.06.2018. The service of printing of pictures attracts GST @ 18%
falling under item (ii), against serial number 21 of the Table in notification
No. 11/2017-Central Tax (Rate) dated 28.06.2018.
The relevant Circular No.84/2018-GST dated
1.1.2019 is given below for ready reference.
,
F.
No. 354/428/2018-TRU
Government of India
Ministry of
Finance
Department of Revenue
Tax research Unit
****
Room No. 146G, North Block, New Delhi, the
1th January
2019
To
The Principal Chief Commissioners/ Chief
Commissioners/
Principal
Commissioners/ Commissioner of Central Tax (All) /
The
Principal Director Generals/ Director Generals (All)
Madam/Sir,
Subject: Clarification on issue of classification of service of printing of pictures covered under 998386– reg.
It has been brought to
the notice of the Board that the service of “printing of pictures” correctly covered under service
code 998386 - “Photographic and videographic processing
services” is being classified by trade under service code 998912 - “Printing and reproduction services of recorded media, on a fee or contract basis”. The two service
codes attract different GST
rate of 18% and 12% respectively and therefore wrong classification may lead to short payment of GST.
2. The matter has
been examined. According to Explanatory Notes to the scheme of
classification of services, the service code “998386 Photographic and videographic processing services, includes, -
developing of negatives and the printing
of pictures for others according
to
customer specifications such as enlargement
of negatives or slides, black and white
processing; colour
printing of images from film or digital media;
slide and negative duplicates, reprints, etc.; developing
of film for both amateur photographers and commercial clients; preparing of photographic
slides; copying of films; converting of
photographs and films to other media”
3. Further, according to explanatory
notes, the service code 998912 “Printing and
reproduction
services of recorded media, on a fee or contract basis” clearly excludes, -
-colour printing of images from film or digital media, cf. 998386,
-audio
and video production services, cf. 999613”
4. In view of the above, it is clarified that service
of “printing of pictures” falls under
service code “998386: Photographic
and videographic processing services” and not
under “998912: Printing and reproduction services of recorded media, on a fee or
contract basis” of the scheme of classification of service
annexed to notification
No.
11/2017-Central Tax(Rate) dated 28.06.2018. The service of printing of pictures attracts GST @ 18% falling under item (ii), against serial number 21 of the Table in notification No.
11/2017-Central Tax(Rate) dated 28.06.2018.
5. Difficulty if any, in the implementation
of this circular may be brought to the notice of the Board.
Yours Faithfully,
Harsh Singh Technical Officer (TRU) Email: harshsingh.irs@gov.in