This circular provides clarification on the GST treatment of printing contracts, specifically whether such contracts are to be treated as supply of goods or supply of services.

It clarifies that printing of items such as books, pamphlets, brochures, annual reports, envelopes, cartons, boxes and similar products, where the content (design, logo, text, name, address, etc.) is supplied by the recipient, constitutes a composite supply. The nature of the supply depends on what constitutes the principal supply, as defined under the CGST Act.

In cases where the printer uses his own physical inputs, including paper, and the recipient supplies only the content or owns the intellectual property rights in the content, the classification depends on the predominance of the supply. Where the dominant element is printing of content, such as in books, brochures, pamphlets or annual reports, the activity is treated as a supply of services and is classifiable under heading 9989.

However, where the predominant element is the supply of printed goods, such as printed envelopes, letterheads, cartons, boxes, tissues or similar items falling under Chapters 48 or 49, the supply is treated as a supply of goods, and printing is considered ancillary.

This clarification ensures uniform classification of printing contracts under GST based on the principle of dominant or principal supply.