I get my educational books published for which I pay my printer gst@ 5% on job work amount and 12% on paper. He gives a single bill of Rs. 100 plus GST RS. 7.8 ( Paper 40+4.8 (12% GST) , and job work 60 +3 (5% GST)) He give this type of bill because if he gives only printing bill , then GST is 18%. So, what are the compliances I have to follow in the first case and is there any complications for me as a publisher.
I am not able to understand your concern he is providing you GST bill and GST on selling book is zero so the GST charged by him will be your expense and if you are selling your book in combination with your coaching then it will attract tax at the rate of coaching i.e. 18%.
I don't think there is anything to worry.
Yes you are right , whatever GST he will charge will be an expense to me. But printing of books atract gst@18% which as a publisher I have to bear the burdon. To reduce this rate , we are taking bills of paper and job work from the same person and acg rate is reduced to 8% because GST on job work is 5% and GST on paper is 12%. I want to know the compliance which we may face since I think we are taking the wrong bills to reduce tax burden.
You know you are doing wrong then there is no way out just maintain the bills properly and hope that officer doesn't ask for explanation.
Why are you doing such thing as such you have to recover it from customer.
Hi,
- If your printer is charging for paper then it would not be categorised as job work. In case of jobwork principal provides material to the job worker and he charges for services only. It appears that he is supplying you a printed book and not separately paper and services.
Thanks
Hi,
My suggestion is to maintain all records and maintain separate bifurcation of paper and printing charges so that you can explain in case of any queries.
Regards,
Nikhil.
Dear Sir,
Hope you are doing well !
Yes, it is a wrong approach.
Please make sure that all the records/bills are properly maintained.
Thanks & Regards,
Payal Chhajed
Hi,
You are doing wrong.
It is advisable that all the records should be proper maintained so you can explain later.
No it is a tax planning you can take separate bill for Paper & printing work & publisher will charge the GST accordingly.
