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The Central Board of Indirect Taxes and Customs clarifies that the service of printing of pictures falls under service code 998386. Taxpayers must classify photographic and videographic processing services under code 998386 instead of code 998912. This service attracts a GST rate of 18 percent under notification No. 11/2017-Central Tax (Rate). Field formations must ensure correct tax application based on this classification.
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Circular No. 84/03/2019-GST
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.
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, - -colour printing of images from film or digital media, cf. 998386, -audio and video production services, cf. 999613”
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.
Yours Faithfully,
Harsh Singh Technical Officer (TRU) Email: harshsingh.irs@gov.in
