GST HSN CODE AND TAX RATE ON PRINTINGOF NEWS LETTER

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Rajendra Singh Manwal (Querist)
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31 May 2021 Sir
We are publication co. want to know if we print another out side news magazine ( Not. Regd.) or broucher etc from our printer on contract basis ( printer raised bill to us ) in this matter our company issued bill to another party what should be charge GST Rate and what is HSN Code ?

Thanks & Regards
Rajendra

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)
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07 July 2024 In your case, as a publication company printing outside news magazines or brochures on a contract basis, there are specific GST rates and HSN codes applicable for printing services.

### GST Rate and HSN Code for Printing Services:

1. **Printing Services (Job Work)**:
- If your company is engaging in printing services where you supply the content and specifications, and the printer performs the printing, it is considered a job work service.
- The HSN code for printing services (other than printing of newspapers, books, journals, and periodicals) is **9989**.
- The applicable GST rate for such printing services is **18%**.

2. **Supply of Printed Magazines or Brochures**:
- If you are supplying printed magazines or brochures, it can be categorized as a supply of printed goods.
- The HSN code for printed books, brochures, leaflets, and similar printed matter is **4901**.
- The applicable GST rate for printed books, brochures, leaflets, and similar printed matter is **0%** (nil rate), provided they are not advertisements. However, if they are promotional or advertising materials, the rate can vary.

### Scenario Breakdown:

1. **When Printer Raises Bill to You**:
- The printer will charge you 18% GST for the printing services provided, under HSN code 9989.
- Example: If the printing bill is ₹1,00,000, the GST charged would be ₹18,000, making the total ₹1,18,000.

2. **When You Raise Bill to Another Party**:
- If you are charging for the printed magazines or brochures:
- If the printed material is educational or non-advertising (e.g., informational brochures), the HSN code is 4901 with a 0% GST rate.
- If the printed material is for advertising or promotional purposes, the HSN code remains 4901 but with a GST rate of 18%.
- Example 1 (Non-Advertising): If the sale value of printed brochures is ₹50,000, the GST would be 0%, and the total bill amount would be ₹50,000.
- Example 2 (Advertising): If the sale value of printed promotional brochures is ₹50,000, the GST would be 18%, making the total ₹59,000.

### Important Points:
- **Job Work**: Ensure that the contract with the printer clearly specifies it as a job work service.
- **Categorization**: Properly categorize the printed material based on its use (informational vs. advertising) to determine the correct GST rate.
- **Documentation**: Maintain all invoices and documentation to support the nature of the printed material for GST compliance.

### Example Invoices:

1. **Invoice from Printer to Your Company (Job Work Service)**:
```
Invoice No: 12345
Date: 01/07/2024
To: Your Publication Company
Description: Printing services for brochures
HSN Code: 9989
Amount: ₹1,00,000
GST @18%: ₹18,000
Total: ₹1,18,000
```

2. **Invoice from Your Company to Another Party (Supply of Printed Brochures)**:
**Non-Advertising Brochures (0% GST)**:
```
Invoice No: 54321
Date: 05/07/2024
To: Another Party
Description: Supply of printed brochures
HSN Code: 4901
Amount: ₹50,000
GST @0%: ₹0
Total: ₹50,000
```

**Advertising Brochures (18% GST)**:
```
Invoice No: 54322
Date: 05/07/2024
To: Another Party
Description: Supply of printed promotional brochures
HSN Code: 4901
Amount: ₹50,000
GST @18%: ₹9,000
Total: ₹59,000
```

By following the above guidelines, you can ensure correct GST compliance and appropriate billing for your printing services and the supply of printed materials.

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