Printing service tax or vat

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 July 2015 A person having printing job work (does not have his own printing press).
Client is not providing him the material (say for an example visting cards etc.)
In case his gross receipts exceeds Rs 10 lacs (which is inseparable for material used and for printing work), then whether he is required to get Service Tax registration or VAT/CST registration. Please advice.

Querist : Anonymous

Querist : Anonymous (Querist)

15 February 2016 Any suggestions please

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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10 August 2024 In the context of a printing job work scenario where the person does not have their own printing press and the client is not providing the material, the tax implications under both Service Tax (now GST) and VAT need to be considered. Let’s break it down:

### **1. Tax Applicability Based on Nature of the Service**

#### **A. **Service Tax** (Applicable before GST)**
- **Applicability:**
- Under the Service Tax regime, printing services were taxed under “Printing of Books, Newspapers, etc.” service. Even if the service provider does not own the printing press but performs the printing job, Service Tax was applicable.
- **Threshold Limit:** Service Tax registration was required if the gross receipts exceeded ₹10 lakhs.

#### **B. **VAT/CST** (Applicable before GST)**
- **Applicability:**
- VAT was applicable if the service provider was involved in the supply of goods. In a typical printing job where material is provided by the client and the job work is done, VAT was not applicable as the transaction was service-based.
- **Threshold Limit:** VAT registration was required if the gross receipts from the sale of goods (if applicable) exceeded ₹5 lakhs or as per the state’s regulations.

### **2. Under GST (Post-July 1, 2017)**

#### **A. **GST Registration** (Applicable for Both Goods and Services)**
- **Applicability:**
- **Printing Services:** Under GST, printing services fall under SAC 9989 and are generally taxed at 12%. If the service provider is carrying out printing jobs and has a turnover exceeding ₹20 lakhs (₹10 lakhs for special category states), GST registration is required.
- **Material Provided by Client:** If the material is provided by the client, it’s treated as a service and GST is applicable to the service part.

- **VAT/CST on Material Supply:** Under GST, the concept of VAT/CST has been replaced. The tax for the printing job would be covered under GST.

- **Threshold Limit:**
- If the turnover exceeds ₹20 lakhs (₹10 lakhs for special category states), GST registration is mandatory. This includes turnover from both goods and services.

### **3. Registration Requirement**

#### **A. **Service Tax Registration (Pre-GST)**
- **Requirement:** If gross receipts exceed ₹10 lakhs, Service Tax registration was required.
- **Current Status:** This requirement has been superseded by GST.

#### **B. **VAT Registration (Pre-GST)**
- **Requirement:** VAT registration was needed if the service provider was also selling goods and turnover exceeded the threshold limit applicable in the state.
- **Current Status:** VAT has been replaced by GST.

### **Current Scenario under GST:**

1. **If Gross Receipts Exceed ₹20 Lakhs:**
- **GST Registration Required:** If the gross receipts (including both the value of printing services and any incidental sale of goods) exceed ₹20 lakhs, GST registration is required. The GST on printing services will be 12%.

2. **For Printing Services Only:**
- **GST at 12%:** If the gross receipts from providing printing services exceed the threshold, GST at 12% is applicable.

3. **Material Supply Consideration:**
- **Under GST:** If you are not selling materials but providing printing services, only GST on the service component is relevant. The supply of materials, if any, would be taxed as per the GST rules for goods.

### **Summary:**

- **Pre-GST (Service Tax/VAT):** If the gross receipts exceed ₹10 lakhs, Service Tax registration was required. VAT was not applicable for purely service-based transactions.
- **Post-GST:** GST registration is mandatory if the turnover exceeds ₹20 lakhs. Printing services are taxed at 12% under GST.

For detailed compliance and registration processes, consulting a tax professional or GST consultant is recommended. This will ensure that all tax obligations are met according to the latest regulations.

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