Flex printing is a popular medium for advertising, promotion, and marketing in India. From small businesses to large corporations, everyone is using flex printing today to create banners, posters, and hoardings. Knowing the correct HSN code and the associated GST rate is very important for every business.
Wrong classification can lead to tax complications and penalties. In this blog, we are highlighting the main HSN codes, tax rate, and applicable rules related to flex printing in simple terms. This will help businesses make the right decision.
| Chapter | Description | HSN Code | Rate (%) | CESS (%) | Effective Date | Rate Revision |
| Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof | Printing Machinery Used for Printing by Means of the Printing Type, Blocks, Plates, Cylinders and Other Printing Components of Heading 8442; Ink-Jet Printing Machines, Other Than Those of Heading 8471; Machines for Uses Ancillary to Printing Other Print | 84435910 | 18% | – | 15/11/2017, 01/07/2017 | – |
| Machinery, Apparatus and Equipment (Other Than the Machine Tools of Headings 8456 To 8465) For Preparing or Making Plates, Printing Components; Plates, Cylinders, and Other Printing Components; Plates, Cylinders, and Lithographic Stones, Prepared for Print | 84425050 | 18% | – | 01/07/2017 | – | |
| Printing Machinery Used for Printing by Means of Plates, Cylinders and Other Printing Components of Heading 8442; Other Printers, Copying Machines and Facsimile Machines, Whether or Not Combined; Parts and Accessories Thereof – Printing Machinery Used For P | 84439920 | 18% | – | 15/11/2017, 01/07/2017 | – | |
| Printing Machinery Used for Printing by Means of The Printing Type, Blocks, Plates, Cylinders and Other Printing Components of Heading 8442; Ink-Jet Printing Machines, Other Than Those of Heading 8471; Machines for Uses Ancillary to Printing – Other Print | 84436090 | 18% | – | 15/11/2017, 01/07/2017 | – | |
| Printing Machinery Used for Printing by Means of Plates, Cylinders and Other Printing Components of Heading 8442; Other Printers, Copying Machines and Facsimile Machines, Whether or Not Combined; Parts and Accessories Thereof – Printing Machinery Used For P | 84439990 | 18% | – | 15/11/2017, 01/07/2017 | – | |
| Machinery, Apparatus and Equipment (Other Than the Machine Tools of Headings 8456 To 8465) For Preparing or Making Plates, Printing Components; Plates, Cylinders and Other Printing Components; Plates, Cylinders and Lithographic Stones, Prepared for Print | 84424000 | 18% | – | 01/07/2017 | – | |
| Printing Machinery Used for Printing by Means of Plates, Cylinders and Other Printing Components of Heading 8442; Other Printers, Copying Machines and Facsimile Machines, Whether or Not Combined; Parts and Accessories Thereof – Parts and Accessories — Other | 84439951 | 18% | – | 15/11/2017, 01/07/2017 | – | |
| (waste and scrap) paper or paperboard | Uncoated Paper and Paperboard, Of A Kind Used for Writing, Printing or Other Graphic Purposes, And Non-Perforated Punch Card and Punch Tape Paper, In Rolls or Rectangular (Including Square) Sheets of Any Size, Other Than Paper of Heading 4801 Or 4803; Hand-made Paper and Paperboard | 48026230 | 12% | – | 01/07/2017 | – |
| Uncoated Paper and Paperboard… Hand-made Paper and Paperboard | 48025640 | 12% | – | 01/07/2017 | – | |
| Uncoated Paper and Paperboard… Hand-made Paper and Paperboard | 48023000 | 12% | – | 01/07/2017 | – | |
| Uncoated Paper and Paperboard… Hand-made Paper and Paperboard | 48026240 | 12% | – | 01/07/2017 | – | |
| Uncoated Paper and Paperboard… Hand-made Paper and Paperboard | 4802 | 12% | – | 01/07/2017 | – | |
| Uncoated Paper and Paperboard… Hand-made Paper and Paperboard | 48025570 | 12% | – | 01/07/2017 | – | |
| Uncoated Paper and Paperboard… Hand-made Paper and Paperboard | 48025710 | 12% | – | 01/07/2017 | – | |
| Uncoated Paper and Paperboard… Hand-made Paper and Paperboard | 48026130 | 12% | – | 01/07/2017 | – | |
| Uncoated Paper and Paperboard… Hand-made Paper and Paperboard | 48026920 | 12% | – | 01/07/2017 | – | |
| Uncoated Paper and Paperboard… Hand-made Paper and Paperboard | 48025830 | 12% | – | 01/07/2017 | – | |
| Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other coloring matter; paints and varnishes; putty and other mastics; inks | Printing Ink, Writing or Drawing Ink, and Other Inks, Whether or Not Concentrated or Solid—Printing Ink: – Black: Rotary Ink | 32151130 | 18% | – | 15/11/2017 | – |
| Printing Ink, Writing or Drawing Ink, and Other Inks, Whether or Not Concentrated or Solid—Other: Fountain Pen Ink | 32159010 | 18% | – | 15/11/2017 | – |
Read more – The Key Differences Between HSN Code and SAC Code
To Wrap Up
The flex printing industry has multiple HSN codes applicable, such as machinery, ink, plastic sheets, or ready-made banners. Different GST rates are applicable in each case, so correct classification is very important. Mentioning the correct HSN code is essential for GST registration in India.
If businesses use the correct code from the beginning, they will be able to maintain tax compliance and get the benefit of input tax credit. Therefore, it is wise to take the help of experts to make the GST process related to flex printing easy and hassle-free. Corpbiz can be your reliable partner in this regard.
Frequently Asked Questions
What is the HSN code for flex banner printing?
HSN code 4911 is generally used for flex banner printing. This code includes banners, posters, pictures, and similar printed materials. When traders provide flex printing services, using this code ensures correct GST classification. Using the wrong code can cause problems in tax filing and input tax credit.
What percentage of GST is applicable on flex banner printing?
Flex banner printing is subject to a GST rate of 12%. This rate is prescribed for flex banners used for advertising, promotion, and commercial purposes. However, if traders sell raw materials such as ink or plastic sheets, then a separate HSN code and generally 18% GST are applicable in that case. Therefore, it is important to know the correct classification according to the type of service and product.
Which HSN code is used for flex printing machines?
Flex printing machines, or inkjet printers, which are used in industrial settings, fall under HSN code 8443. Some machinery may also fall under code 8442. Such machinery is generally subject to 18% GST. Those who import or sell machinery must mention the correct code.
What is the HSN code for ink for flex printing?
Different types of printing inks used in flex printing fall under the HSN code 3215. 18% GST is applicable on the supply of ink or coloured ink under this code. Since ink is a primary raw material, mentioning the correct code allows traders to get input tax credit, which helps in controlling costs.
What is the HSN code for plastic sheets or flex materials?
Plastic sheets, films, or foils used in making flex banners are generally included in HSN codes 3920 and 3921. 18% GST is applicable on such materials. Businesses that supply raw materials for banner manufacturing must use this code. Otherwise, tax complications may arise due to misclassification.
Are all types of printing services subject to the same GST rate?
No, all types of printing services are not subject to the same GST rate. For example, flex printing is subject to 12% GST, but printing ink or machines are subject to 18% GST. Again, printing of books, magazines, etc., may have different rates. Therefore, it is very important to use the correct HSN code according to the nature of the business or service.
What is the difference between HSN codes 4901 and 4911?
HSN code 4901 is mainly used for printed books, leaflets, or brochures. On the other hand, HSN code 4911 is used for posters, pictures, advertising banners, and similar printed materials. In both cases, 12% GST is generally applicable. However, using the wrong code can cause problems in filing tax returns.
Can traders claim ITC on flex printing services?
Yes, traders can claim Input Tax Credit (ITC) if flex printing is used for commercial purposes. However, ITC cannot be claimed if flex printing is used for personal use or in tax-exempt sectors. Mentioning the correct invoice and HSN code makes the ITC claim process easier.
What are the problems that can arise if the wrong HSN code is used?
Using the wrong HSN code can lead to discrepancies in GST filing. This can result in traders getting notices or penalties. In addition, the input tax credit claim may be rejected. Therefore, traders should ensure the correct classification of each service and seek expert help if necessary.
Can the GST rate for flex printing services change from time to time?
Yes, the GST Council can change the tax rate if necessary. However, currently, 12% GST is applicable on flex printing. Traders should check the notifications regularly and, if there are any changes, apply them to the invoices. This reduces the audit or compliance risks.
What is the HSN code of paper used in flex printing?
Uncoated paper used in various fields apart from flex printing generally falls under HSN code 4802 or the 4802 series. 12% GST is applicable on such paper. Although flex is usually printed on plastic sheets, it is important to use the correct code even for paper-based printing materials.
Why is it important to know the correct HSN code for a flex printing business?
Using the correct HSN code helps traders maintain tax compliance. It not only makes it easier to claim input tax credit but also reduces the risk of penalties due to misclassification. Having the correct HSN code during tax department audits makes the business more transparent.
What products are included under HSN code 3921?
HSN code 3921 mainly includes plastic sheets, films, foils, and other non-cellular plastic materials. These are widely used in the manufacture of flex banners. This code is generally subject to 18% GST. If traders supply raw materials, then this code must be used.
Is flex banner printing a ‘service’ or a ‘good’?
Flex banner printing is generally considered a service, as money is charged for the printing service. However, in the case of selling raw materials, it is considered good. Therefore, different HSN codes and GST rates may apply to services and goods.
How can small businesses avail tax benefits on flex printing?
If small businesses opt for the composition scheme, they can file GST in a simplified manner. However, they will not be able to claim input tax credit. Businesses that take large orders should ensure regular GST filing and use the correct HSN code.
Can flex printing be zero-rated?
Generally, flex printing is not zero-rated. However, if the service is exported and provided to a foreign client, it can be treated as a zero-rated supply. In that case, IGST is applicable, and the business can claim a refund.
How to prepare a correct invoice for flex printing services?
The invoice must mention the correct HSN code, GST rate, invoice number, date, and customer details. This will enable the customer to claim ITC, and the business’s tax records will also be correct. Incorrect or incomplete invoices can lead to tax complications.
How can Corpbiz help the flex printing industry?
Corpbiz provides complete support to traders in GST compliance. They provide professional assistance in determining HSN codes, creating correct invoices, filing GST returns, and ITC claim processes. This allows traders to focus on their core business without worrying about tax issues.
Read more – HSN Code – Chapter Wise Code List and Section Wise Code List
