Classification of Goods — The appellant filed an application for Advance Ruling under section 98 of the CGST Act, 2017 and KGST Act, 2017 on the following questions:-

(i) Whether ‘Access Card’ printed and supplied by the Appellant based on the contents provided by their customers is rightly classifiable under HSN code 4901 10 20 under the description brochures, leaflets and similar printed matter whether or not in single sheet?

(ii) Whether ‘Access card’ printed and supplied by the appellant based on the contents provided by their customers attracts GST rate of 5% in case of IGST and 2.5% CGST and 2.5% SGST in case of Intra state supplies vide Notification No. 1/2017-CT (Rate) Sl.No.201 & 1/2017-IT (Rate) Sl.No.201 dated 28.06.2017 and SGST/UTGST Notifications.

It was decided by the Karnataka Advance Ruling Authority vide Ruling No. KAR/ADRG 46/2019 dated 17th Sept 2019 that the supply of ‘access cards”, and similar material printed by the applicant with the contents supplied by the recipient of supply are classifiable as a supply of service under SAC 9989 and liable to tax under CGST at 9%, KGST at 9% and at 18% under the IGST Act.

Aggrieved by the said Ruling of the Authority (herein after referred to as ‘impugned order’), the Appellant has filed an appeal under section 100 of the CGST Act, 2017.

The Access cards being printed cards in single sheets are classifiable under sub-heading 4901 10 20 under the category of pamphlets, booklets, brochures, leaflets and similar printed matter. They will fall under the description of the term ‘leaflet’ under 4901 10 20. In the GST rate Notification No 01/2017 CT (R) dated 28.06.2017, “Brochures, leaflets and similar printed matter, whether or not in single sheets are covered under entry SI.No 201 of Schedule I with rate of 2.5% CGST and 2.5% SGST.

We set aside the ruling no No.KAR ADRG 46/2019 dated 17/09/2019 passed by the Advance Ruling Authority and answer the questions of the Appellant as follows:-

(i) The ‘Access Card’ printed and supplied by the Appellant based on the contents provided by their customers is a supply of goods and is rightly classifiable under HSN code 4901 10 20 under the description brochures, leaflets and similar printed matter whether or not in single sheet.

(ii) The ‘Access card’ printed and supplied by the appellant attracts GST rate of 5% in case of inter-state supplies and 2.5% CGST and 2.5% SGST in case of Intra state supplies vide SI.No. 201 of Schedule I to Notification No. 1/2017-CT (Rate) & 1/2017-IT (Rate) both dated 28.06.2017.— Pattabi Enterprises, In Re… [2020] 20 TAXLOK.COM 111 (AAAR-Karnataka)