Composite or Mixed Supply
The term composite supply is used at section 8. In this regard, the tax liability on a composite or a mixed supply shall be determined in the following manner:
(a) Composite Supply under GST
a composite supply would mean a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are" naturally bundled" and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply.
The concept of composite supply under GST is identical to the concept of "naturally bundled services"
but if ‘bundled service’ would be air transport services provided by airlines wherein an element of transportation of passenger by air is combined with an element of provision of catering service on board.
so in that case these services are not naturally bundles so each service involves differential treatment as a manner of determination of value of two services for the purpose of charging service tax is different.
Time of supply in case of Composite supply
If the composite supply involves supply of services as principal supply, such composite supply would qualify as supply of services and accordingly the provisions relating to time of supply of services would be applicable.
Alternatively
if composite supply involves supply of goods as principal supply, such composite supply would qualify as supply of goods and accordingly, the provisions relating to time of supply of goods would be applicable.
lets take a example to understand
Where goods are packed and transported with insurance, the supply of goods, packing materials, transport and insurance is a composite supply and supply of goods is a principal supply
(b) Mixed Supply
a mixed supply means two or more individual supplies of goods or services, or any combination thereof, made in conjunction with each other by a taxable person for a single price where such supply does not constitute a composite supply.
Time of supply in case of mixed supplies
The mixed supply, if involves supply of a service liable to tax at higher rates than any other constituent supplies, such mixed supply would qualify as supply of services and accordingly the provisions relating to time of supply of services would be applicable.
Alternatively
the mixed supply, if involves supply of goods liable to tax at higher rates than any other constituent supplies, such mixed supply would qualify as supply of goods and accordingly the provisions relating to time of supply of services would be applicable.
lets take a example to understand
A supply of a package consisting of canned foods, sweets, chocolates, cakes, dry fruits, aerated drinks and fruit juices when supplied for a single, price is a mixed supply.
Determination of tax liability of tax liability of Composite and Mixed Supplies
The tax liability on a composite or a mixed supply shall be determined in the following manner, namely: —
a) a composite supply comprising two or more supplies, one of which is a principal supply, shall be treated as a supply of such principal supply; and
b) a mixed supply comprising two or more supplies shall be treated as a supply of that particular supply which attracts the highest rate of tax.
The term composite supply is used at section 8. In this regard, the tax liability on a composite or a mixed supply shall be determined in the following manner:
a composite supply would mean a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are" naturally bundled" and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply.
The concept of composite supply under GST is identical to the concept of "naturally bundled services"
but if ‘bundled service’ would be air transport services provided by airlines wherein an element of transportation of passenger by air is combined with an element of provision of catering service on board.
so in that case these services are not naturally bundles so each service involves differential treatment as a manner of determination of value of two services for the purpose of charging service tax is different.
Time of supply in case of Composite supply
If the composite supply involves supply of services as principal supply, such composite supply would qualify as supply of services and accordingly the provisions relating to time of supply of services would be applicable.
Alternatively
if composite supply involves supply of goods as principal supply, such composite supply would qualify as supply of goods and accordingly, the provisions relating to time of supply of goods would be applicable.
lets take a example to understand
Where goods are packed and transported with insurance, the supply of goods, packing materials, transport and insurance is a composite supply and supply of goods is a principal supply
(b) Mixed Supply
a mixed supply means two or more individual supplies of goods or services, or any combination thereof, made in conjunction with each other by a taxable person for a single price where such supply does not constitute a composite supply.
Time of supply in case of mixed supplies
The mixed supply, if involves supply of a service liable to tax at higher rates than any other constituent supplies, such mixed supply would qualify as supply of services and accordingly the provisions relating to time of supply of services would be applicable.
Alternatively
the mixed supply, if involves supply of goods liable to tax at higher rates than any other constituent supplies, such mixed supply would qualify as supply of goods and accordingly the provisions relating to time of supply of services would be applicable.
lets take a example to understand
A supply of a package consisting of canned foods, sweets, chocolates, cakes, dry fruits, aerated drinks and fruit juices when supplied for a single, price is a mixed supply.
Determination of tax liability of tax liability of Composite and Mixed Supplies
The tax liability on a composite or a mixed supply shall be determined in the following manner, namely: —
a) a composite supply comprising two or more supplies, one of which is a principal supply, shall be treated as a supply of such principal supply; and
b) a mixed supply comprising two or more supplies shall be treated as a supply of that particular supply which attracts the highest rate of tax.
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