Section 8 - GST liability on composite and mixed supplies
Contents
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Para |
Topics |
Relevant Section/Rules/N/C/O |
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Purpose of Composite and missed supply |
NA |
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GST on composite supply shall be based on principal supply |
Section 8(a) |
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Various Circulars or Case laws |
NA |
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Clarification on taxability of printing services |
Circular No. 11/11/2017-GST dated 20-10-2017 |
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Clarification on servicing of cars involving both supply of goods (spare parts) and services (labour) |
Circular No. 47/21/2018 – CGST dated 08-06-2018 |
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Clarification in respect of certain services |
Circular No. 34/08/2018-GST dt. 01-03-2018 |
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Selling of water in container |
Aquaa Care (Surat) Ro Technologies Private Limited, (2019) |
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Supply of tobacco in restaurant |
Mfar Hotels & Resorts Pvt. Ltd.[ 2020 (42) G.S.T.L. 470 (A.A.R. - GST - T.N.)] |
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Tax liability on mixed supply to be based on highest gst rate |
Section 8(b) |
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Conditions of supplies being a composite or mixed supply |
NA |
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Buy one get one free offer is a mixed supply |
Circular No. 92/11/2019 - GST |
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Supply of external storage battery with UPS, constitutes as ‘Mixed Supply’ |
Switching avo Electro Power Ltd. (2018) 96 taxmann.com 106 (AAAR-West Bengal) |
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Miscellaneous Questions |
NA |
8.0 Purpose of Composite and missed supply
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GST is payable on individual supply of goods or services at the notified rates. There is no problems in application of GST rate to individual supply if the supply is of individual goods or services. However, some of the supplies are a combination of goods or combination of services or combination of goods and services both and each individual component of such supplies may attract a different rate of tax. It is for this reason, that the GST Law identifies composite supplies and mixed supplies and provides certainty in respect of tax treatment under GST for such supplies. |
8.1 GST on composite supply shall be based on principal supply
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Section 8(a) The tax liability on a composite supply comprising two or more supplies, one of which is a principal supply shall be determined on the basis of principal supply. |
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Composite supply = Principal supply + other supply In case of Composite supply, tax liability of Principal Supply shall apply. |
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GST rate applicable to principle supply shall be applied to whole composite supply. |
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Works contract and restaurant services are classic examples of composite supplies |
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Ex |
Rati Computers supplies laptop (worth Rs.52,000) alongwith laptop bag (worth Rs.3,000) to a customer for Rs.55,000. Being naturally bundled, supply of laptop bag along with the laptop is composite supply which is treated as the supply of the principal supply [viz. laptop]. Assuming that the rate of tax applicable on laptop is 18% and on laptop bag is 28%, in the given case, rate of principal supply, i.e. laptop @ 18% will be charged on the entire value of ` 55,000. |
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Refer Section 2(90) for meaning of “principal supply” |
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Refer Section 2(30) for meaning of “composite supply” |
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8.1.1 Various Circulars or Case laws
8.1.1.1 Clarification on taxability of printing services
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Circular No. 11/11/2017-GST dated 20-10-2017 |
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1. |
Whether supply of books, pamphlets, brochures, envelopes, annual reports, leaflets, cartons, boxes etc., printed with design, logo, name, address or other contents supplied by the recipient of such supplies, would constitute supply of goods falling under Chapter 48 or49 of the First Schedule to the Customs Tariff Act, 1975 or supply of services falling under heading 9989. |
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2. |
In the above context, it is clarified that above supplies are composite supplies and the question, whether such supplies constitute supply of goods or services would be determined on the basis of what constitutes the principal supply. |
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3. |
Refer Section 2(90) for meaning of “principal supply” |
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4. |
Content/Text supplied by the recipient of supply and paper supplied by printer is supply of printing under heading 9989 In the case of printing of books, pamphlets, brochures, annual reports, and the like, where only 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 falling under heading 9989. |
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5. |
Printing of design, logo etc. supplied by the recipient of goods but made using physical inputs including paper belonging to the printer is supply of goods In case of supply of printed envelopes, letter cards, printed boxes, tissues, napkins, wall paper etc. falling under Chapter 48 or 49, printed with design, logo etc. supplied by the recipient of goods but made using physical inputs including paper belonging to the printer, predominant supply is that of goods and the supply of printing of the content [supplied by the recipient of supply] is ancillary to the principal supply of goods and therefore such supplies would constitute supply of goods falling under respective headings of Chapter 48 or 49 of the Customs Tariff. |
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8.1.1.2 Clarification on servicing of cars involving both supply of goods (spare parts) and services (labour)
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Extract of Circular No. 47/21/2018 – CGST dated 08-06-2018 |
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2. |
How is servicing of cars involving both supply of goods (spare parts) and services (labour), where the value of goods and services are shown separately, to be treated under GST? |
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2.1 |
The taxability of supply would have to be determined on a case to case basis looking at the facts and circumstances of each case. |
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2.2 |
Where a supply involves supply of both goods and services and the value of such goods and services supplied are shown separately, the goods and services would be liable to tax at the rates as applicable to such goods and services separately |
8.1.1.3 Clarification in respect of certain services
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Extract of Circular No. 34/8/2018-GST dated 01-03-2018 |
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1. |
Whether activity of bus body building, is a supply of goods or services? In the case of bus body building there is supply of goods and services. Thus, classification of this composite supply, as goods or service would depend on which supply is the principal supply which may be determined on the basis of facts and circumstances of each case. |
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2. |
Whether retreading of tyres is a supply of goods or services? Clarification In retreading of tyres, which is a composite supply, the pre-dominant element is the process of retreading which is a supply of service. Rubber used for retreading is an ancillary supply. Which part of a composite supply is the principal supply, must be determined keeping in view the nature of the supply involved. Value may be one of the guiding factors in this determination, but not the sole factor. The primary question that should be asked is what is the essential nature of the composite supply and which element of the supply imparts that essential nature to the composite supply. Supply of retreaded tyres, where the old tyres belong to the supplier of retreaded tyres, is a supply of goods (retreaded tyres under heading 4012 of the Customs Tariff attracting GST @ 28%) |
8.1.1.4 Selling of water in container
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In Re: Aquaa Care (Surat) Ro Technologies Private Limited, (2019)- Aar Gujarat |
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1. |
Where company is selling water in containers whether selling of container and water is composite supply? Water cannot be sold standalone without filling in containers and thus the supply is naturally bundled and supplied in conjunction with each other in the ordinary course of business - Selling of water in container is composite supply where selling of purified water is the principal supply. |
8.1.1.5 Supply of tobacco in restaurant
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In Re : Mfar Hotels & Resorts Pvt. Ltd.[ 2020 (42) G.S.T.L. 470 (A.A.R. - GST - T.N.)] |
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1. |
What is the rate of tax applicable on the supply of Tobacco (Smokes) when these items are supplied independently and not as composite supply in the restaurant? Held: The applicant supplies cigarettes as a separate supply in the restaurant to a casual guest who do not avail of any other services offered by the applicant other than buying cigarettes at the restaurant. The applicant in the menu for restaurant has various cigarette products, i.e., any guest who comes to the restaurant can have cigarettes alone also as these are in the menu of the restaurant. When a guest (resident or non-resident) comes to the restaurant and orders from the menu tobacco products, it involves supply of goods (cigarettes) and supply of services by the restaurant. In this case both the supplies are taxable. The serving of any items by a restaurant involves the supply of the items along with the use of the facilities/staff of the restaurant. However, in this case the sale of cigarette products are not naturally bundled together with the restaurant services as the services of the restaurant involve serving of food and beverages alone in the normal course. Hence is not a composite supply as per Section 2(30) of the Act. However, when such cigarettes products are supplied by the restaurant, a single price is charged as seen in the invoices submitted by the applicant. Section 2(74) of CGST/TNGST Act states ”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. In the instant case, supply of tobacco products by the restaurant is not a composite supply but involves supply of two individual supplies of goods (tobacco products) and supply of services of serving by the restaurant. Such a supply is a mixed supply. |
8.2 Tax liability on mixed supply to be based on highest gst rate
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Section 8(b) Tax liability on mixed supply comprising two or more supplies shall be determined on the basis of supply which attracts the highest rate of tax |
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Refer Section 2(74) for meaning of “mixed supply” |
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Supply having highest GST rate shall be applied to whole mixed supply. |
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Ex |
Sringaar Enterprises supplies 10,000 kits (at Rs.50 each) amounting to Rs.5,00,000 to Raghav General Store. Each kit consists of 1 face cream, 1 face tissue packet and 1 nail paint. It is a mixed supply and is treated as supply of that particular supply which attracts highest tax rate. Assuming that the rate of tax applicable on face cream is 18%, on face tissue packet is 28% and on nail paint is 12%, in the given case, highest tax rate [viz. face tissue packet] @ 28% will be charged on the entire value of Rs.5,00,000. |
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Ex |
[ICMAI-F-Ch2-Ex90] [ICMAI-I-Ch2-Ex93] M/s X Ltd. a dealer offer combo packs of shirt, watch, wallet, book and they are bundled as a kit and this kit is supplied for a single price and the supply of one item does not naturally necessitate the supply of other elements. Hence the supply is a mixed supply. Tax rate for a shirt, watch, wallet and book are 12%, 18%, 5% and Nil respectively. In this case, watch attracts the highest rate of tax in the mixed supply i.e 18%. Hence, the mixed supply will be taxed at 18% |
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8.2.1 Conditions of supplies being a composite or mixed supply
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Conditions |
Composite Supply |
Mixed Supply |
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Naturally bundled |
Yes |
No |
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Supplies together |
Yes |
Yes |
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Can be supplied separately |
No |
Yes |
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One is predominant supply for recipient |
Yes |
No |
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Each supply priced separately |
No |
No |
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8.2.2 Buy one get one free offer is a mixed supply
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Extract of Circular No. 92/11/2019 - GST dated 07-03-2019 |
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B |
i. Sometimes, companies announce offers like ‘Buy One, Get One free‟ For example, “buy one soap and get one soap free‟ or “Get one tooth brush free along with the purchase of tooth paste‟. As per section 7(1)(a), goods or services which are supplied free of cost (without any consideration) shall not be treated as “supply‟ under GST (except in case of activities mentioned in Schedule I of the said Act). It may appear at first glance that in case of offers like “Buy One, Get One Free‟, one item is being “supplied free of cost‟ without any consideration. In fact, it is not an individual supply of free goods but a case of two or more individual supplies where a single price is being charged for the entire supply. It can at best be treated as supplying two goods for the price of one Taxability of such supply will be dependent upon as to whether the supply is a composite supply or a mixed supply and the rate of tax shall be determined as per section 8. It is also clarified that ITC shall be available to the supplier for the inputs, input services and capital goods used in relation to supply of goods or services or both as part of such offers. |
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8.2.3 Supply of external storage battery with UPS, constitutes as ‘Mixed Supply’
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Switching avo Electro Power Ltd. (2018) 96 taxmann.com 106 (AAAR-West Bengal) The Appellant Authority for Advance Ruling upheld the ruling of Authority for Advance Ruling that when the storage battery or electric accumulator is supplied separately with the static converter (UPS), it would be considered as a mixed supply or not naturally bundled supply. Here the appellant contended that the UPS cannot function without battery as the same is an integral part of UPS and it is naturally bundled and supplied in conjunction with each other, therefore the supply of static converter along with the external battery should be considered as a composite supply and not mixed supply. However, the AAAR opined that the when a UPS is supplied with built-in batteries in a manner that the supply of the battery is inseparable from the supply of the UPS, and the two items are ‘naturally bundled’ then it should be treated as a composite supply under Section 2(30) of the CGST Act, but when the storage batteries having multiple uses is supplied with the static converter i.e. UPS, it cannot be said that they are naturally bundled even if the same is supplied under a single contract at a combined single price. Therefore, the supply of external storage battery supplied with UPS would be considered as a ‘mixed supply’. |
8.3 Miscellaneous Questions
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8.1 GST on composite supply shall be based on principal supply
[T-1] [ICSI-E-D20-57-1]
Section 2(30) of CGST Act, 2017 defines Composite Supply made by a taxable person to a recipient and the tax under GST on such composite supply is to be charged at the rate which is applicable to the _________
(A) different supplies (B) principal supply (C) highest tax rate supply (D) lowest tax rate supply
[T-2] [ICMAI-F-D19-1(iii)-2]
What would be the tax rate applicable in case of composite supply?
(A) Tax rate as applicable on principal supply;
(B) Tax rate as applicable on ancillary supply;
(C) Tax rate as applicable on respective supply;
(D) Tax Rate of the Principal supply or ancillary supply whichever is higher.
8.1.1.1 Clarification on taxability of printing services
Question-1 [ICAI-F-Ch2-1]
Satyamev Printers is a printing house registered under GST. It receives an order for printing 5000 copies of a book on yoga and meditation authored by a well-known yoga guru. The content of the book is to be provided by the yoga guru to Satyamev Printers. It is agreed that Satyamev Printers will use its own paper to print the said books.
You are required to determine the rate of GST applicable on supply of printed books by Satyamev Printers assuming that rate of GST applicable on services is 18% whereas the rate of GST applicable on supply of goods is 12%.
Answer
Section 2(30) provides that a composite supply means 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.
Circular No. 11/11/2017 GST dated 20.10.2017 has clarified that supply of books, pamphlets, brochures, envelopes, annual reports, leaflets, cartons, boxes etc. printed with logo, design, name, address or other contents supplied by the recipient of such printed goods, are composite supplies.
Further, section 8(a) stipulates that a composite supply comprising two or more supplies, one of which is a principal supply, is treated as a supply of such principal supply. Hence, one needs to ascertain what constitutes the principal supply in this supply. As per section 2(90), principal supply is the 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.
The above circular further clarifies that in the composite supply of printing of books, pamphlets, brochures, annual reports, and the like, where only 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.
Accordingly, in the given case, the supply of printed books by Satyamev Printers is a composite supply wherein the principal supply is supply of printing services. Thus, the rate of GST applicable thereon is the rate applicable on supply of printing services, i.e. 18%.
Question-1A [ICMAI-I-Ch2-Ex96]
“D 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 D Force who owns the usage rights of the same while the physical inputs including paper used for printing belong to the Durga Printing House. Ascertain whether supply of training material by the Durga Printing House constitutes supply of goods or supply of services.
Ans
Durga Printing House made supply of service
8.2 Tax liability on mixed supply to be based on highest gst rate
[T-1] [ICSI-E-D20-55-1]
Two or more taxable supplies of goods/services/both, being supplied in conjunction with each other, are deliberately bundled, a single price is charged for the supply and none of the supplies within the package is identifiable as principal supply is known under GST as ---------------
(A) Mixed supply (B) Supply of goods and services (C) Composite supply (D) Both, composite and mixed supply
Question-1 [ICSI-E-J22-85-1]
DSR Ltd. is a manufacturer of food products supplied in a package consisting of chocolates (GST Rate 12%), cakes (GST rate 18%) and sweets (GST Rate 28%). The price per package is Rs.1,250 (exclusive of taxes). In a month, 1,200 of such packages were supplied by the company. What is the nature of supply and the amount of GST ?
(A) Composite; Rs.4,20,000 (B) Composite; Rs.1,80,000 (C) Mixed; Rs.1,80,000 (D) Mixed; ` Rs.4,20,000
Question-1A [ICSI-E-J21-56-1]
Soundarya & Co. sold product A, Product B and Product C as mixed supply. If sold separately the applicable GST rates are 5%, 12% and 28% respectively. What GST rate would apply when they are supplied together ?
(A) 5% i.e. least rate (B) 28% i.e. highest rate (C) 12% i.e. standard rate (D) 15% i.e. average rate
Question-1C [ICSI-E-D20-59-1]
A combo pack of cosmetic products comprising of items of (i) Hair Dryer of value of Rs.1,500 taxable under GST @ 28%, (ii) Tooth-paste of value of Rs.500 taxable @ 12% and (iii) different types of Combs of value of Rs.500 taxable @ 5%. The total value of combo pack comprising of all such items is of Rs.2,400. Tax to be charged on such combo pack under the CGST Act, 2017 shall be of ----------- (A) Rs.540 (B) Rs.485 (C) Rs.672 (D) Rs.700
8.2.1 Conditions of supplies being a composite or mixed supply
[T-1] [ICSI-E-D20-O-83-1]
Main difference between Composite supply and Mixed supply is that :
(A) Composite supply is naturally bundled i.e. goods or services are usually provided together in normal course of business whereas in Mixed supply, the goods or services can be sold separately.
(B) Mixed supply, is naturally bundled i.e. goods or services are usually provided together in normal course of business whereas in Composite supply, the goods or services can be sold separately.
(C) Mixed supply is naturally bundled but Composite supply is not naturally bundled.
(D) There is no difference between Composite supply and Mixed supply.
8.2.2 Buy one get one free offer is a mixed supply
Question-1 [ICMA-F-D19-2(i)-2] [ICMAI-I-Ch2-Ex95]
Space Bazar offers a free bucket with detergent purchased. Is it composite supply or mixed supply? Assume rate of GST for detergent @28% and bucket @18%.
Answer:
This is a mixed supply. These items can be sold separately. Product which has the higher rate, will apply on the whole mixed bundle.
Question-2 [ICMAI-I-J19-1c(iv)-1]
A registered person under GST law gives a free spoon along with every soap purchased. This is a case of composite supply under GST law [T/F]
8.3 Miscellaneous Questions
T-1 [ICSI-E-D18-5d-3]
Explain the meaning, with distinctive features as per the CGST Act, 2017, relating to Composite Supply and Mixed Supply
[T-1A] [ICMAI-I-J19-2a-7]
Explain the concepts "Composite Supply" and "Mixed Supply" with reference to the provisions of CGST Act. Give at least one example in each case.
[T-2] [ICAI-I-Ch2-4]
Composite supply is treated as supply of that particular goods or services which attracts the highest rate of tax. Examine the validity of the statement.
Answer
The statement is not correct. Composite supply is treated as supply of the principal supply. It is the mixed supply that is treated as supply of that particular goods or services which attracts the highest rate of tax.
Question-1 [ICSI-E-D18-O-77-1] [ICSI-E-J18-91-1] [ICSI-E-D21-54-1]
A supply made by a taxable person to a recipient of goods being buyer consisting of two or more taxable supplies of goods or services or of both or any combination thereof which are only bundled and supplied in conjunction with each other in the ordinarily course of business out of which one is a principal supply has been defined u/s 2(30) of CGST Act, 2017 as ...............
A) Composite supply (B) Mixed supply (C) Higher rate tax supply (D) Bundled supply
Question-2 [ICSI-E-D21-58-1]
As per provision of CGST Act, 2017, supply comprising of two or more individual supplies of goods or services deliberately bundled by a taxable person for a single price that attracts the highest rate of tax of any of the supplies within the package is called as ............. .
(A) Mixed supply (B) Composite supply (C) Taxable supply (D) Both (B) & (C)
Question-3 [ICAI-I-Ch2-11]
Determine whether the following supplies amount to composite supplies:
(a) A hotel provides 4 days-3 nights package wherein the facility of breakfast and dinner is provided alongwith the room accommodation.
(b) A toothpaste company has offered the scheme of free soap along with the toothpaste.
Question-3A [ICMAI-F-D19-2(ii)-2] [ICMAI-F-Ch2-Ex91] [ICMAI-I-Ch2-Ex94]
Mr. A booked a Rajdhani train ticket, which includes meal. Is it composite supply or mixed supply?
Answer:
It is a bundle of supplies. It is a composite supply where the products cannot be sold separately. The transportation of passenger is, therefore, the principal supply. Rate of tax applicable to the principal supply will be charged to the whole composite bundle. Therefore, rate of GST applicable to transportation of passengers by rail will be charged by on the booking of Rajdhani ticket.
Question-4 [ICMAI-F-D19-2(iii)-2] [ICMAI-F-Ch2-Ex88] [ICMAI-I-Ch2-Ex91]
Mr. Ravi being a dealer in laptops, sold a laptop bag along with the laptop to a customer, for Rs.55,000. CGST and SGST for laptop @18% and for laptop bag @28%. What would be the rate of tax leviable? Also find the GST liability.
Answer
If the laptop bag is supplied along with the laptop in the ordinary course of business, the principal supply is that of the laptop and the bag is an ancillary.
Therefore, it is a composite supply and the rate of tax would that as applicable to the laptop. Hence,
applicable rate of GST 18% on Rs.55,000. CGST is Rs.4,950 and SGST is Rs.4,950
Question-5 [ICAI-F-N18-O-1b-5]
Sharma Carriers is a Good Transport Agency engaged in transportation of goods by road.
As per the general business practice, Sharma carriers also provides intermediary and
ancillary services like loading /unloading, packing/unpacking, transhipment and temporary
warehousing in relation to transportation of goods by road.
With reference to the provisions of GST law, analyse whether such services are to be
treated as part of the GTA services, being a composite supply or as mixed supply.
Ans
Composite supply means 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 [Section 2(30) of the CGST Act,
2017].
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 [Section 2(74) of the CGST
Act, 2017].
The various intermediary and ancillary services provided by GTA are not provided as
independent services but as ancillary to the principal service, namely, transportation of
goods by road. The invoice issued by the GTA for providing the said service includes the
value of intermediary and ancillary services. In view of this, if any intermediary and ancillary
service is provided in relation to transportation of goods by road, and charges, if any, for
such services are included in the invoice issued by Sharma Carriers, such service would
form part of the GTA service, and thus will be composite supply, and not a mixed supply
even though a single price is charged for the supply.
Further, if such incidental services are provided as separate services and are billed
separately, whether in the same invoice or separate invoices, they will be treated as
separate supply and not composite supply and there being no single price, the supply will
also not be treated as mixed supply – in terms of Q. 6 of the CBIC FAQs on Transport &
Logistics2.
2In case where incidental services are provided as separate services and are billed separately, whether
in the same invoice or separate invoices, it is also possible to take a view that they need not be treated
as separate supply, but part of composite supply. Further, there being no single price, the supply will not
be treated as mixed supply.
Question-6 [ICAI-F-Ch2-4]
Shivaji Pvt. Ltd., a registered supplier, supplies the following goods and services for construction of buildings and complexes
- excavators for required period at a per hour rate
- manpower for operation of the excavators at a per day rate
- soil-testing and seismic evaluation at a per sample rate.
The excavators are invariably hired out along with operators. Similarly, excavator operators are supplied only when the excavator is hired out. For a given month, the receipts (exclusive of GST) of Shivaji Pvt. Ltd. are as follows:
- Hire charges for excavators-Rs.18,00,000
- Service charges for supply of manpower for operation of the excavator - Rs.20,000
- Service charges for soil testing and seismic evaluation at three sites - Rs.2,50,000
Compute the GST payable by Shivaji Pvt. Ltd. for the given month.
Assume the rates of GST to be as under:
Hiring out of excavators – 12%
Supply of manpower services and soil-testing and seismic evaluation services–18%
Answer
Computation of GST liability
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Particulars |
Value |
GST Rate |
GST Payable |
|
Hiring charges for excavators |
18,00,000 |
12% |
2,16,000 |
|
Service charges for supply of manpower for operation of excavators [Note 1] |
20,000 |
12% |
2,400 |
|
Service charges for soil testing and seismic evaluation [Note 2] |
2,50,000 |
18% |
45,000 |
Notes
1. Since the excavators are invariably hired out along with operators and excavator operators are supplied only when the excavator is hired out, it is a case of composite supply under section 2(30) wherein the principal supply is the hiring out of the excavator.
As per section 8(a), the composite supply is treated as the supply of the principal supply. Therefore, the supply of manpower for operation of the excavators will also be taxed at the rate applicable for hiring out of the excavator (principal supply), which is 12%.
2. Soil testing and seismic evaluation services being independent of the hiring out of excavator will be taxed at the rate applicable to them, which is 18%.
Question-7 [ICAI-I-J21-6b-4] [Price of each goods shown separately]
Explain the composite supply and mixed supply. If a trader launches a package sales for
marriage containing double bed, refrigerator, washing machine, wooden wardrobe at a
single rate. He is issuing invoice showing value of each goods separately. Whether this is
case of mixed supply or composite supply. Explain.
Question-8 [ICAI-I-Ch2-12]
Dumdum Electronics has sold the following electronic items to Akbar Retail Store.
(i) Refrigerator (500 litres) taxable @ 18%
(ii) Stabilizer for refrigerator taxable @ 12%
(iii) LED television (42 inches) taxable @ 12%
(iv) Split air conditioner (2 Tons) taxable @ 28%
(v) Stabilizer for air conditioner taxable @12%
Dumdum Electronics has issued a single invoice, indicating price of each of the above items separately in the same. Akbar Retail Store has given a single cheque of Rs.1,00,000/- for all the items as a composite discounted price. State the type of supply and the tax rate applicable in this case.
Question-9 [ICAI-I-Ch2-13]
Manikaran, a registered supplier of Delhi, has supplied 20,000 packages at Rs.30 each to Mukhija Gift Shop in Punjab. Each package consists of 2 chocolates, 2 fruit juice bottles and a packet of toy balloons. Determine the rate(s) of GST applicable in the given case assuming the rates of GST to be as under:
|
Goods/ Services supplied |
GST Rate |
|
Chocolates |
18% |
|
Fruit juice bottles |
12% |
|
Toy balloons |
5% |
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