composite supply
Query (Issue) Started By: – CA.ANCHAL RASTOGI Dated:- 17-8-2017 Last Reply Date:- 24-8-2017 Goods and Services Tax – GST
Got 4 Replies
GST
A CONTRACTOR GETS A ORDER FROM A OFFICE FOR ELECTRIC WIRING FIXING OF LIGHT AND FAN. IN ORDER IT IS SPECIFICALLY MENTIONED THAT WHICH MAKE AND MODEL OF ITEMS WILL BE USED BY THE CONTRACTOR. IN WORK ORDER, TOTAL CONSIDERATION IS FIXED FOR A SINGLE AMOUNT FOR SUPPLY OF BOTH GOODS AND SERVICES.
WHETHER IT IS QUALIFIED AS COMPOSITE / MIXED SUPPLY. WHETHER IT MAY BE TAXED @ 18% ASSUMING SUPPLY OF SERVICE AS PRINCIPAL SUPPLY.
Reply By KASTURI SETHI:
The Reply:
It is Composite supply.
Reply By Rajagopalan Ranganathan:
The Reply:
Sir,
Section 2 (30) of CGST Act, 2017 defines “
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pply does not constitute a composite supply;
Illustration: 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. Each of these items can be supplied separately and is not dependent on any other. It shall not be a mixed supply if these items are supplied separately.
You have stated that TOTAL CONSIDERATION IS FIXED FOR A SINGLE AMOUNT FOR SUPPLY OF BOTH GOODS AND SERVICES. Therefore supply made by you can be treated as mixed supply.
Section 8 of the same Act stipulates that "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; a
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