We are a printing house registered under GST. We have received an order for printing 10,000 copies of books. The content of the books will be provided by our esteemed client. We will use our own paper to print the books. GST Rate on supply of Books is 12% and GST Rate on supply of service is 18%. What is applicable GST rate for this transaction?
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Greetings from Ssk Advisory. We are happy to resolve your query.
Please note, since you are supplying printed books as well as paper, and in ordinary course of business, they are naturally bundled and supplied in conjunction with each other, it falls under the definition of composite supply as per Section 2(31) Central Goods and Services Tax Act, 2017.
Circular No. 11/11/2017 GST dated 20.10.2017 has clarified that the supply of printed books are composite supplies. Moreover, with reference to the above circular, since your client is providing the content only; and you are providing the paper as well as the printed books, your supply is treated as supply of service and not supply of goods.
Thus, in your transaction, the applicable rate of GST is 18% as your supply is a composite supply and the principle supply is the printing service.
Link to the Circular
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