The Government of India’s GST Council met for the 20th time on Saturday 5 August 2017 and revised the rates on thirteen categories including job work services for textiles; services for printing of newspapers and books (including Braille books) where content is from the publisher and the physical inputs for printing are from the printer; works contract services provided by government; commission to fair price dealers by government; admission to planetariums; rent-a-cab services, ground transport agency services; and, tractor parts. The GST for turnkey printing work was also revised.
Significant for the newspaper, magazine and book publishing and printing industry, is the reduction in GST for printing services for publishers from 18% with full Input Tax Credit (ITC) to 5% GST with full ITC where the publisher supplies inputs such as paper. For turnkey printing services in which the printers supplies the paper and other inputs, the GST has been reduced from 18% with full ITC to 12% with full ITC.
In the opinion of at least one commercial printer in Delhi, this seems to be a satisfactory revision of the anomalous rates that were earlier announced. The previously confusing and anomalous rates and were discussed by a delegation of the All India Master Printers Association with the relevant TRU committees of the Ministry of Finance a few days earlier.
What is CGST, SGST, IGST
The GST to be levied by the Centre is called Central GST (CGST) and that to be levied by the States (including Union territories with legislature) would be called State GST (SGST). An Integrated GST (IGST) would be levied on inter-State supply (including stock transfers) of goods or services. This would be collected by the Centre. Import of goods would be treated as inter-State supplies and would be subject to IGST in addition to the applicable customs duties. Exports will be treated as zero-rated supplies which means no tax will be payable on exports of goods or services. However, exporters can claim input tax credit (ITC).
