GST Rate on Flex Banners and Printed Trade Advertising Material
The Telangana advance ruling authority held that printed flex banners using the printer's own raw materials are a supply of goods taxed at 12% GST.
- Ruling
- TSAAR Order No. 4/2018 dated 30-05-2018
- Dated
- 30 May 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.
The short version
- Macro Media asked if printing flex banners is a supply of goods.
- Printer supplied all raw materials including paper, flex, and ink.
- Authority ruled this activity is a supply of goods, not a service.
- Classified under HSN heading 4911 for trade advertising material.
- Attracts 12 percent Goods and Services Tax (GST).
In short
A printing company asked tax authorities how custom flex banners and printed ad materials should be taxed under Goods and Services Tax (GST). The main issue was whether printing custom designs provided by customers counts as selling goods or providing a service.
What has changed
How it worked before
Printers were often uncertain whether custom advertising materials made with their own paper and ink were a supply of goods or a supply of services.
What has changed
In TSAAR Order No. 4/2018 dt. 30-05-2018, the Telangana Authority for Advance Ruling decided that printed flex banners are a supply of goods because the printer owns all physical inputs like flex, paper, and ink. The authority classified these ad materials under tariff heading 4911, attracting 12% GST (6% Central Tax + 6% State Tax).
Who this affects
Printers, digital signage manufacturers, and advertising suppliers in India who manufacture printed banners using their own raw materials.
An example
A sign business in Hyderabad prints flex banners for local shop owners. The shop owners provide only the logo design and measurements, while the printing firm buys all the vinyl, ink, and frame materials. The printing firm asks if this transaction is a supply of goods. Following the logic in TSAAR Order No. 4/2018, because the firm supplies all physical inputs and transfers ownership of the finished banner, it is a supply of goods under HSN 4911 at 12% GST.
What you should do
Review your customer contracts to see if your business supplies all the underlying raw materials for printed items. Note that an advance ruling binds only the company that asked for it and its local tax office. If you want legal certainty for your own business, you must apply for your own ruling or speak with a GST professional.
If you do nothing
If you assume this ruling automatically applies to your business, a local tax officer might take a different view during an audit. Misclassifying goods as services or using the wrong HSN code can lead to tax demands, interest charges, and financial penalties.
The terms explained
- supply of goods
- Under GST law, this means transferring ownership and title of physical items to a customer.
- tariff heading 4911
- A specific code under the Harmonized System of Nomenclature (HSN) used to classify trade advertising material and printed matter.
- advance ruling
- An official written decision given by tax authorities to a business about how tax rules apply to its specific operations.
The ruling in detail
Authority for Advance Ruling
M/s. Macro Media Digital Imaging Private Limited
TSAAR Order No. 4/2018 dated 30-05-2018 · Telangana
Questions before the authority
- Whether the printed advertisement materials classifiable as 'supply of goods?
- If yes, whether it is classifiable under chapter heading 4911 of first schedule to Customs Tariff Act, 1975?
Facts
The applicant is engaged in the manufacturing and sale of digital printed trade advertising material such as flex banners. Clients provide only design specifications and sizes, while all physical inputs (paper, ink, and flex) are procured entirely by the applicant. The applicant transfers title in the printed goods to the clients and recovers charges for transportation, packing, and installation.
Ruling
| Question | What the authority ruled |
|---|---|
| Classification of printed advertisement materials as supply of goods | Classifiable as 'supply of goods' Transfer of title in goods where physical inputs belong to the printer. |
| Classification under chapter heading 4911 of Customs Tariff Act, 1975 | Classifiable under chapter heading 4911; rate of tax is 6% CGST + 6% SGST (12% GST) Covered under Sl. No. 132 of Schedule-II of Notification No. 1/2017-Central Tax (Rate). |
The authority held that the printed advertisement materials manufactured and supplied by the applicant constitute a **supply of goods**. Further, the goods are classifiable under **Tariff Heading 4911** and attract GST at the rate of 12% (6% CGST + 6% SGST).
Reasoning
Under Section 7 read with Schedule II Sl. No. 1(a) of the CGST Act, 2017, any transfer of title in goods constitutes a **supply of goods**. This is supported by TRU Circular No. 11/11/2017-GST, which clarifies that printing contracts where the printer owns the physical inputs are supplies of goods. Based on Chapter Note 5 to Chapter 49 of the Customs Tariff Act, 1975, trade advertising materials fall under **Tariff Heading 4911**, attracting 12% GST as per Notification No. 1/2017-Central Tax (Rate).
Provisions relied on
- Section 2(52) of CGST Act, 2017
- Section 7 of CGST Act, 2017
- Schedule II Sl. No. 1(a) of CGST Act, 2017
- TRU Circular No. 11/11/2017-GST dated 20-10-2017
- Notification No. 1/2017-Central Tax (Rate) dated 28-06-2017
- Heading 4911 of Customs Tariff Act, 1975
For the practitioner
Establishes that custom-printed advertising materials (e.g., flex banners) are a **supply of goods** classified under HSN 4911 at 12% GST when the printer supplies all raw materials. It does not decide the classification for contracts where the customer provides the underlying paper or material.
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_04-2018_telangana.pdf
Legibility of the scan, as read: high.
Prepared 18-10-2026.
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