Central Tax Circulars

CGST Circular 84/2019

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.

1) 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 28.06.2017.

5) Difficulty if any, in the implementation of this circular may be
brought to the notice
of the Board.