Circular No. 84/03/2019-GST dt. 01.01.2019
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 28.06.2018