Tea and utensil mixed supplies attract the highest component GST rate, with HSN selection based on component rates.
Case-Laws
GST
Tea packaged with spoons, glass cups or wooden honey dippers for a single price constitutes a mixed supply where the items are independently marketable and not naturally bundled in the ordinary course of business. Tea's predominance alone does not establish a composite supply. A mixed supply attracts the highest GST rate applicable to its components: 18% for tea paired with stainless steel or plastic spoons or glass cups, and 5% for specified teas paired with wooden honey dippers. For these combinations, the HSN code corresponds to the higher-rated component; where both components attract the same rate, either component's code may be used.
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