Composite Supply [Section 8(a) of CGST Act, 2017]
Levy and Collection – GST Ready Reckoner
GST
Composite Supply
General Introduction
The taxable event under GST is supply of goods or services or both. GST will be payable on every supply of goods or services or both unless otherwise exempted. The rates at which GST is payable for individual goods or services or both is also separately – notified. Classification of supply (whether as goods or services, the category of goods and services) is essential to charge applicable rate of GST on the particular supply. The application of rates will pose no problem if the supply is of individual goods or services which is clearly identifiable and the goods or services are subject to a particular rate of tax.
But not all supplies will be such simple and clearly identifiable supplies. Some of the supplies will be a combination of goods or combination of services or combination of goods and services both. Each individual component in a give
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ere such supply or service is for cash, deferred payment or other valuable consideration.
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.
Some clarifications on composite given by CBIC
1. Clarification on taxability of printing contracts
* The printing industry in India in particular faces a dilemma in determining whether the nature of supply provided is that of goods or services and whether in case certain contracts involve both supply of goods and services, whether the same would constitute a supply of goods or services or if it would be a co
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ply 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.
2. Retreading of tyres is supply of services but supply of retreaded tyre is goods, is composite supply and pre dominant element is process of retreading which is services. Rubber used for retreading is an ancillary supply. [ Circular No. 34/8/2018-GST dated 01.03.2018 ]
3. Bus body building classification of this composite supply, as goods or service would depend on which supply is the principal supply which may be determined o
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doctor/nutritionists is a part of composite supply of healthcare and not separately taxable. Other supplies of food by a hospital to patients (not admitted) or their attendants or visitors are taxable. [ Circular No. 32/06/2018-GST Dated 12.02.2018 ]
Important Case Laws
1. M/S. South Indian Federation of Fishermen Societies [2022 (61) G.S.T.L. 205 (A.A.R. – GST – T.N.)] – AMC of machines, it is cover both supply of goods & services, the predominant intention is provide maintenance services. it is considered composite supply of services where the principal supply is services and the supply of goods is incidental to such supply of services.
2. Supply of Grated supari, lime and tobacco in single pack, it is a composite supply of goods, wherein chewing tabacco is the principal supply. [ M/S. Jainish Anant Kumar Patel, 2021 (1) TMI 493 – AAR, Gujarat ]
3. Supply of sale of space in print media along with designing , selling of space in print media, is a principal supply, it is a comp
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