GST blues continues to bedevil printers

The print and packaging industry has seen business, contract. Anecdotal evidence suggests consumable consumption has been at the lowest post July.

One leading printer said, that after the high of 2008, this has been the sharpest downturn. One thing is clear, lack of knowledge regarding the new indirect tax Goods and Services has affected “orders”.

Many firms are hoping more clarity in the near-term to lead to activity growth.

01 Sep 2017 | By Sriraam Selvam

Even as printer, paper and packaging bodies are making representations to the GST Councils and government bodies, there remains a huge debate about the letter which amends the points 26 & 27 of notification 11 dated 28.06.2017. This means SAC 9989 - Printing contracts where printer uses his own inputs (including paper).

12% - in case of books, journals, periodicals & newspapers
18% - in case of others

A top printer who spoke to PrintWeek India said, “Many firms have requested their customers to adhere to the above. But very few have agreed to change the purchase orders.

The problem has become ticklish. Whether customers change the purchase order or not, they cannot dictate the law to the print or packaging firm. But till such time, clients are stating, "We shall check with our legal team and revert. But it will take time. Till then supplies should not stop."

Meanwhile, the All India Federation of Master Printers representatives said, “We have submitted one more round of representation asking to consider us in 'supply of goods' and given proper justification. Moreover, we have also asked to bring all items of Chapter 49 under 12% flat for printers.”

Some GST clarity is expected next week. Watch this space for more.

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