This circular provides clarification on the correct classification of the service of printing of pictures for the purpose of GST levy.

The circular notes that instances have come to notice where the service of printing of pictures is being wrongly classified under service code 998912, relating to printing and reproduction services of recorded media, which attracts GST at 12%. This misclassification has resulted in short payment of GST. The issue has arisen because printing of photographs involves a physical output, leading to confusion with general printing services.

After examining the explanatory notes to the Scheme of Classification of Services, the circular clarifies that printing of pictures is correctly classifiable under service code 998386, covering photographic and videographic processing services. This category specifically includes activities such as developing negatives, colour printing of images from film or digital media, enlargements, reprints, slide preparation, and similar photographic processing services carried out as per customer specifications.

It is further clarified that service code 998912 expressly excludes colour printing of images from film or digital media, which are covered under service code 998386. Therefore, printing of photographs cannot be classified as printing or reproduction of recorded media.

Accordingly, the service of printing of pictures attracts GST at the rate of 18% under serial number 21(ii) of Notification No. 11/2017–Central Tax (Rate) dated 28 June 2017.