Goods and Services Tax – Started By: – prakash kumar – Dated:- 17-6-2017 Last Replied Date:- 16-7-2017 – Dear Professional Colleagues,I want to raise a practical issue with respect to GST implementation.We are a manufacturer as well as trader of UPS (Static Converter). We supply battery along with UPS. UPS(Static Convertors) is covered under tarifff Heading 8504, which is taxable under GST at the rate of 18%. While Battery is covered under tariff heading 8506, which is taxable at the rate of 28% under GST.Whether said supply is composite supply or mixed supply? What will be the rate of tax applicable on said supply?If it is mixed supply, can we raise separate bill for UPS & Battery? Advice the best possible way.Thank you for your valuable time. – Reply By Govind Gupta – The Reply = the question to be asked in context of composite supply whether the items are naturally bundled and one of the item is prominent, it that case the tax rate applicable for prominent item will be applicab
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mments.But, i would like to state one import fact about our products that, value of battery, which is purchased from outside vendors is round 30-40% of total invoice amount. So, battery being significant in terms of value. So, for the sake of classifying under Composite Supply, would it be correct to say that, UPS (which is our manufactured product) is Principal Supply and battery (which is also significant) to be secondary supply ?Please guide me through. – Reply By MUKUND THAKKAR – The Reply = We are a manufacturer as well as trader of UPS (Static Converter). We supply battery along with UPS. UPS(Static Convertors)your query it self say you are Traders, for getting the advantage of higher tax inward and lower tax out ward will putting you in trouble. so advise given by expert Ganeshji / kasturiji is correct. – Reply By KASTURI SETHI – The Reply = Difference between both terms is given in TMI's FAQ which extracted below for convenience:-Composite supply is a supply consisting of t
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dy given by me, Sh.Ganeshan Kalyani, Sir and supported by Sh.Mukund Thakkar Sir is correct. – Reply By Jhankar Nathvani – The Reply = There should some important facts about this matter need to consider:1) Customer buying UPS System for back up power, that system can not work without battery. Only supply of battery can not give back up power and vice versa.2) There are some UPS have inside battery, those are imported with Inside battery and IGST applied at the time of import is 18%3) The UPS need longer back up, connect battery outside the UPS, that is just different version of UPS having battery insideIf there is different HSN code for the UPS with battery inside or battery outside ? There is no clarification on the schedule of GST about inside battery or outside battery.The opinion here recall the story of 4 blind discribe elephant, every one is true from one direction but doesn't cover the real fact.The authentic solution is to put your question before the Advance Ruling Authori
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