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books, pamphlets, brochures, annual reports, and the like, where only content is
However, if such incidental services are provided as separate services and charged
supplied by the publisher or the person who owns the usage rights to the intangible
separately, whether in the same invoice or separate invoices, they shall be treated as
inputs while the physical inputs including paper used for printing belong to the CH 2
separate supplies.
printer, supply of printing [of the content supplied by the recipient of supply] is the

CCP 02.19.55.00 principal supply and therefore such supplies would constitute supply of service.
Satyamev Printers is a printing house registered under GST. It receives an order Accordingly, in the given case, the supply of printed books by Satyamev
Printers is composite supply wherein the principal supply is supply of printing
for printing 5000 copies of a book on yoga and meditation authored by a well-
known yoga guru. The content of the book is to be provided by the yoga guru to services. Thus, the rate of GST applicable thereon is the rate applicable on supply of
Satyamev Printers. It is agreed that Satyamev Printers will use its own paper to printing services, i.e. 18%.
print the said books. Charge of Tax & Concept of Supply

You are required to determine the rate of GST applicable on supply of printed 20. Questions on CBIC Clarifications
books by Satyamev Printers assuming that rate of GST applicable on printing CCP 02.20.56.00
services is 18% whereas the rate of GST applicable on supply of paper used in There are 5 members in a JV including the operating member and each one of
printing the books is 12%. [ICAI Material] them contributes `2 Lakh as part of their share. Running factory is purchased
Answer:- Section 2(30) provides that a composite supply means a supply made by a for ` 10 Lakh and one of the operating member use its personal machine for
taxable person to a recipient consisting of two or more taxable supplies of goods or production to support in expansion of JV. Explain whether cash call is taxable or
services or both, or any combination thereof, which are naturally bundled and not as per GST law.

supplied in conjunction with each other in the ordinary course Answer:
of business, one of which is a principal supply. Clarification:- As per circular no. 35/09/2018 dated 05.03.2018
Circular No. 11/11/2017 GST dated 20.10.2017 has clarified that supply of Whether cash call in JV is taxable or not depends on the facts and circumstances of
books, pamphlets, brochures, envelopes, annual reports, leaflets, cartons, boxes etc. each case- (a) Normally cash call in JV is transaction in money & hence not treated
printed with logo, design, name, address or other contents supplied by the recipient of as supply of goods or services. (b)But if cash call pool ed by a JV towards taxable

such printed goods, are composite supplies. services received from a member or a third party is in the nature of consideration
Further, section 8(a) stipulates that a composite supply comprising two or then it is treated as advance for supply of service & hence attracts GST.
more supplies, one of which is a principal supply, is treated as a supply of such Therefore the money paid for purchase of factory is merely in the nature of
principal supply. Hence, one needs to ascertain what constitutes the principal supply capital contribution and treated as a transaction in money.
in this supply. In the second case one member uses its own machine is therefore providing
As per section 2(90), principal supply is the supply of goods or services which service within the scope of supply of CGST Act. The operating member is recovering
constitutes the predominant element of a composite supply and to which any other the cost appropriated towards machinery and services from other JV members in the

supply forming part of that composite supply is ancillary. participating interest ratio.
The above circular further clarifies that in the composite supply of printing of

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