Clarification on issue of classification of service of printing of pictures covered under 998386

Jan 02, 2019 | by Avantis RegTech Legal Research Team


The Department of Revenue on January 01, 2019 has issued Clarification on issue of classification of service of printing of pictures covered under 998386.

It has been brought to the notice of the Department of Revenue that the service of “printing of pictures” correctly covered under service code 998386 - “Photographic and videographic processing services” has been 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.

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

Further, according to explanatory notes, the service code 998912 “Printing and reproduction services of recorded media, on a fee or contract basis” clearly excludes:

o   colour printing of images from film or digital media, cf. 998386,

o   audio and video production services, cf. 999613

Therefore, 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 June 28, 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 June 28, 2018.

[Circular No. 84/03/2019-GST]

URL: http://www.cbic.gov.in/resources//htdocs-cbec/gst/circular-cgst-84.pdf;jsessionid=042F26F153E85550F7935B53EDDB3CFE


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