Fact: HP India Sales Private Limited (“the applicant”) is engaged inter-alia in providing printing supplies to be used in HP’s Indigo press machines supplied to customers. The HP Indigo digital printing press (hereinafter referred as HP Indigo) is a printing press uniquely designed for ensuring best quality prints in the industry along with wide colour gamut, substrate versatility, speed, productivity and with the ability to vary every printed copy. The HP Indigo machine is based on a unique digital offset colour technology specially designed to cater the printing requirements of large-scale print service providers. The HP Indigo printers are significantly different from other office and industrial use printers due to the specialized liquid ink (hereinafter referred as Electroink) being used in its print process. Additionally, ancillaries comprising of oil, binary ink developer, bib, blanket, print imaging plate and other machine products (hereinafter collectively referred as “consumables”) are also consumed in the Indigo press machines in the course of effecting prints.
Issue Involved: The petitioner is before the Maharashtra Authority for Advance Ruling (“the AAR”) for getting judgement in respect to following:
- Classification of Electroink supplied along with consumables under GST
- Determination of time and value of supply of Electroink with consumables under the indigo press contract.
Applicant’s Interpretation of Law: The supply of Electoink along with consumables by the Applicant to the Reseller is a composite supply being supply consisting of supply of goods or services which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, where Ink is the principal supply.
Held: The Hon’ble AAR of Maharashtra vide Advance Ruling NO.GST-ARA-38/2017-18/B-45 dated June 08, 2018 observed as follows:
- With reference to Section 2(30) of the MSGST Act provides that the term “composite supply” means: “a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply”. And Section 2(74) “mixed supply” means two or more individual supplies of goods or services, or any combination thereof, made in conjunction with each other by a taxable person for a single price where such supply does not constitute a composite supply.”
There is no dispute that applicant’s supplies consist of two or more than two supplies. It is also not in dispute that the supplies are made in conjunction with each other and made for a single price. We have already observed that each of the supplies can be supplied separately as they are not dependent on each other and one supply of goods does not occasion the supply of other goods. Therefore, supply of Electro Ink supplied along with consumable is a mixed supply as defined u/s section 2 (74) of the GST Act and is also a continuous supply of goods as defined u/s 2 (32) of the GST Act.
2. As per Section 12(2) time of supply of goods is the time supply of goods shall be the earlier of the following dates, namely: –
(a) the date of issue of invoice by the supplier or the last date on which he is required, under sub-section (1) of section 31, to issue the invoice with respect to the supply; or
(b) the date on which the supplier receives the payment with respect to the supply
Therefore, the time of supply of Electro Ink supplied along with consumables under the indigo press contract would be the earliest date between the date of invoice or the date of receipt of payment. As regards the value of supply of Electro Ink supplied with consumables under the Indigo Press Contract would be the transactions value as reflected in the invoice issued u/s 31(4) of the GST Act.
Citation:  98 taxmann.com 330 (AAR – MAHARASHTRA)