GST on Printing Services: Billing, SAC Codes & Input Tax
Printing services are widely used by businesses across industries whether for brochures, packaging, labels, books, or marketing materials. But how does GST apply to these services? The GST on printing services can be complex, depending on the nature of the job, the material used, and the ownership of inputs. This blog simplifies the GST structure, SAC codes, billing practices, and input tax credit (ITC) implications for printers and clients.
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GST Applicability on Printing Services
Under the GST regime, printing jobs are treated as either:
- Supply of Goods – if the content belongs to the printer
- Supply of Services – if the content belongs to the customer
This distinction determines the GST for printing services and how tax is applied.
GST Rate on Printing Services
| Type of Printing Work | Ownership of Content | GST Rate |
|---|---|---|
| Printing where printer owns paper + content (e.g., books, posters) | Printer | 12% |
| Printing where customer supplies content, printer provides paper | Customer | 18% |
| Printing on customer’s supplied material (only service) | Customer | 18% |
GST on Printing Paper
If you purchase printing paper separately, it is taxed as a good and attracts a 5% to 12% GST, depending on the type:
| Paper Type | GST Rate |
|---|---|
| Newsprint | 5% |
| Coated / Art Paper | 12% |
| Printing / Writing Paper | 12% |
SAC Codes for Printing Services
Printing services are classified under Chapter 9989 of the SAC (Services Accounting Code).
| Service Description | SAC Code | GST Rate |
|---|---|---|
| Printing of advertising material (pamphlets, catalogues) | 998912 | 18% |
| Printing of books, journals, newspapers | 998912 | 12% or Exempt |
| Printing on plastic, metal, textiles | 998912 | 18% |
Input Tax Credit (ITC) on Printing Services
Businesses availing printing services can claim Input Tax Credit on the GST paid, provided:
- The invoice is GST-compliant and carries your GSTIN
- The services are used for business (e.g., packaging, promotions, documentation)
However, ITC is not allowed on printing services used for:
- Personal events (e.g., wedding cards)
- Gift items not used for business promotion
- Blocked credits under Section 17(5)
Conclusion
The GST on printing services depends on who owns the content and whether materials are supplied by the client or printer. By correctly classifying services as goods or service-based transactions and using the appropriate SAC codes, both service providers and businesses can remain GST-compliant. Knowing the input tax credit rules ensures transparent pricing and efficient tax credit utilization.
I am a Chartered Accountant with 5 years of experience specializing in GST, income tax, and HSN code classification. I help businesses with GST compliance, tax planning, and financial advisory, ensuring they meet regulatory requirements while optimizing their tax strategies. I aim to simplify GST filings, income tax laws, and HSN code classifications, helping professionals and business owners stay informed and compliant.
Frequently Asked Questions (FAQs)
- What is the GST rate on printing services?It is 12% or 18%, based on ownership of content and material.
- Is GST applicable on book printing?Yes. If books are printed with content owned by the printer, GST is 12%. If only printing is done on client content, GST is 18%.
- What SAC code is used for printing services under GST?The SAC code is 998912.
- Can I claim ITC on printing services?Yes, if it is used for business purposes and you receive a valid GST invoice.
- What is the GST on printing paper?It varies from 5% to 12%, depending on the type of paper.
