To seek the clarification of certain points, AIFMP delegation met ShriAlokShukla, Joint
Secretary, TRU-I, Shri Amitabh Kumar, Joint Secretary – TRU – IIand ShriReyaz Ahmed,
Director – TRU – 1 in the ministry of Finance recently.
During discussions the officials proclaimed that “Most of the printing units areengaged
in printing of customized printing products, whether the paper is supplied by the printer
from his own source or whether the paper is supplied by the client. In both the cases,
the ownership of the printed materials rests with the clients as the content is provided
by the client and the matters are customized in nature.”
Under the circumstances, wherever the printing units are engaged in producing
customized printed material, they would be treated as “Supply of Printing Services” and
would be subjected to GST rates as per serial No 26 & 27 of Notification 11 – Central Tax
(Rates) dated 28.06.2017 i.e. 18%. It is worth mentioning here that GST rates given
under chapter 48 and 49 in the notification no.1/2017-integrated tax (rate) issued on 28
June 2017 are contrary and 250,000 printing companies of India are confused about the
implementation of these two different notifications.
Reacting to the above clarification, Prof. Kamal Chopra, President All India Federation of
Master Printers (AIFMP) said, “I fail to understand the legitimacy of GST rates given
under chapter 48 and 49 in the notification no.1/2017-integrated tax (rate) issued on 28
June 2017 if the printing is now considered under supply of services.” There can’t be any
other ‘Manufacturer’ for Brochures, leaflets etc. other than a printer and the ownership
contents in such cases remain with the client only. Prof. Chopra contended that if
printing is under supply of services why Chapter 49 is there? For the sake of clarity
either Chapter 49 may be removed or printed products may be classified to be ‘Supply
of Goods’.
Speaking on the occasion, Mr.AnandLimaye, HGS of AIFMP said, “During the pre GST
regime printing was exempted from service tax and we were subject to pay VAT only, so
how to withstand such a steep increase, is another point of concern.” He further added
that I fail to understand why it is brought under ‘Supply of Services’? He said, in India
there are 250,000 printing companies and most of these are micro or small in size only
handful of printers are in medium category. The industry is already suffering due to high
capital cost and increasing global competition. Printing is the major tool for the spread
of education and with such a high rate of GST the educational books and stationery is
going to be costly affecting the campaign to make India fully literate.
Mr ArvindMardikar, Hon. Treasurer, AIFMP added that on the one end with the
consideration of printing as supply of services the GST rates will increase to the second
maximum and at the other end the printed books can be imported without any duty or
IGST. He further said that the cost of paper is already higher due to import duty on
paper and with this increase in the GST rates the import of printed book will increase
due to high cost of printing at local printing units. He said it is not out of place to
mention that tomorrow may be our religious books like, Ramayana, Quran, Bible, Guru
Granth Sahib etc. will be printed in China because there is no import duty of IGST on
printed books.
Prof. Kamal Chopra added, AIFMP is the apex body of 250,000 printingcompanies of
India and is the largest printers association in the world. He said,on the behalf of these
printers we would like to ask the government throughmedia to clarify our following
points:
1. If printers are under Supply of Manufacturing Services then why Chapter 48/ 49 is
there where printed items are given under ‘Supply of Goods’.
2. There is no duty/IGST on the import of printed books, with the imposition of
second highest GST rates on printing products it may not be possible to strive the
global completion which mean death of Indian Printing Industry
3. When Printing was exempted from service tax during pre GST era why it was
brought under ‘Supply of Manufacturing Services’
4. Why confusion is being created by issuing two separate notifications GST is
different at Chapter 49 and 9989. How and who will use 4901 for the printing of
Brochure, leaflets etc. at 5% GSTeek
