GST Rates for Printing Services and Security Documents in Telangana
- Ruling
- TSAAR Order No. 10/2018, dated 26-07-2018
- Authority
- Authority for Advance Ruling
This page was written by Patron Accounting’s AI from the official release and reviewed before publishing. It explains the document in plain language. It is not the document itself. Where this page and the original differ, the original governs.
In short
The company asked the Telangana Authority for Advance Ruling (AAR) to clarify the Goods and Services Tax (GST) rates for various printing contracts. The core issue was whether these tasks should be taxed as a service or as a supply of goods based on who provides the raw materials.
What has changed
How it worked before
Businesses in the printing industry often struggled to classify contracts because it was unclear if they were providing a service or selling a physical product. Many firms were unsure if supplying the paper or plastic cards changed their tax obligations under the GST regime.
What has changed
The authority ruled that the tax rate depends on whether the printer or the client provides the physical materials. For example, printing cheque books is a 5% service if the bank provides the paper, but it becomes a supply of goods if the printer provides it, while PVC card printing is taxed as a supply of goods at 18%.
Who this affects
This ruling is relevant for printing businesses, security document providers, and firms that handle large-scale printing contracts for banks, government bodies, or educational institutions.
What you should do
You should review your specific printing contracts to see who is responsible for supplying the raw materials like paper or plastic. Remember that an advance ruling only binds the company that asked and its specific tax office, so you cannot automatically apply this decision to your own business without consulting a professional.
The ruling in detail
Authority for Advance Ruling
M/s. K L Hi-tech Secure Print Ltd
TSAAR Order No. 10/2018, dated 26-07-2018 · Telangana
Questions before the authority
- Whether printing of pre-examination items, post-examination items, and scanning/processing of results for educational boards is an exempted supply of service?
- What is the classification and GST rate for the supply of printing of cheque books?
- What is the classification and GST rate for the printing and supply of Aadhaar Cards on paper?
- What is the classification and GST rate for the printing and supply of Polyvinyl chloride (PVC) Cards?
Facts
The applicant is engaged in printing security documents for various clients including educational boards, banks, and government authorities. They perform services ranging from printing examination materials and cheque books to printing and dispatching Aadhaar cards and PVC cards. The applicant sought clarification on the taxability and classification of these diverse printing activities under the GST regime.
Ruling
| Question | What the authority ruled |
|---|---|
| Examination services | Exempt Under Entry 66 of Notification 12/2017-Central Tax (Rate) |
| Cheque books (bank paper) | 5% GST Classified as job work service |
| Cheque books (printer paper) | Exempt Classified as goods under HSN 4907 |
| Aadhaar cards | 12% GST Classified as service under HSN 9989 |
| PVC cards | 18% GST Classified as goods under HSN 3920 |
The authority ruled that services provided to educational institutions for conducting examinations are exempt. Printing of cheque books is treated as a service at 5% GST when paper is supplied by banks, but as an exempt supply of goods when the printer provides the paper. Aadhaar card printing is classified as a service at 12% GST, while PVC card printing is classified as a supply of goods at 18% GST.
Reasoning
The authority applied the principle of **composite supply** and determined the **predominant element** of each transaction. For examination services, it relied on the exemption for services relating to the conduct of examinations by educational institutions. For cheque books and Aadhaar cards, it distinguished between job work services and the supply of goods based on who provides the physical inputs. PVC cards were treated as a supply of goods because the printer provides the plastic cards, making the printing ancillary to the supply of the card itself.
Provisions relied on
- Section 96(1) of TGST Act, 2017
- Section 100(1) of CGST/TGST Act, 2017
- Notification No. 12/2017-Central Tax (Rate)
- Notification No. 11/2017-Central Tax (Rate)
- Notification No. 02/2017-Central Tax (Rate)
- Notification No. 1/2017-Central Tax (Rate)
- Circular No. 11/11/2017-GST
For the practitioner
This ruling provides a clear framework for distinguishing between **printing services** and the **supply of goods** based on the ownership of physical inputs. It helps practitioners categorize printing contracts by applying the test of principal supply. However, it does not provide a universal rule, as taxability remains highly dependent on the specific contractual terms regarding the supply of raw materials.
Source
This is a summary prepared from the published order, which is a scanned document. It is a reading aid and not the authority: where the two differ, the order governs. Verify every provision against the original before relying on it.
Original order: https://www.gstcouncil.gov.in/sites/default/files/AAR/tsaar_10.2018_26.07.18.pdf
Legibility of the scan, as read: high.
Prepared 21-10-2026.
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