"Diligent Force" a professional training institute gets its training material of "Aptitute Quotient" printed from "Durga Printing House" a printing press. The content of the material is provided by the "Diligent Force" w

Circular No. 11/11/2017-GST dated 20.10.2017 has clarified that supply of books printed with contents supplied by the recipient of such printed goods is composite supply and the question, whether such supplies constitute supply of goods or services would be determined on the basis of what constitutes the principal supply. Principal supply has been defined in section 2(90) of the Central Goods and Services Tax Act, 2017 as supply of goods or services which constitutes the predominant element of a composite supply and to which any other supply forming part of that composite supply is ancillary. In the case of printing of books where content is supplied by the publisher or the person who owns the usage rights to the intangible inputs while the physical inputs including paper used for printing belong to the printer. Supply of printing of the content supplied by the recipient of supply is the principal supply and therefore, such supplies would constitute supply of service and not supply of goods. Thus, in view of the above mentioned provisions, the supply of training material by Durga Printing House would constitute supply of services.