NEW CONCEPTS OF SUPPLY IN REVISED GST LAW
By: – Pradeep Jain
Goods and Services Tax – GST
Dated:- 21-12-2016<\/p>\n
NEW CONCEPTS OF SUPPLY IN REVISED GST LAW:-
\nThe revised GST Law introduces three new concepts of supply which are discussed in this update.
\nCOMPOSITE SUPPLY:- Section 2(27) defines this term as “composite supply” means a supply made by a taxable person to a recipient comprising two or more supplies of goods or services, 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.
\nIllustration given in Revised GST Law: Where goods are packed and transported with insurance, the supply of goods, packing mater<\/p>\n
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Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n complex service. The introduction of concept of composite supply in GST regime is similar to the concept of bundled services under Service Tax Laws. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ncipal supply. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" NEW CONCEPTS OF SUPPLY IN REVISED GST LAWBy: – Pradeep JainGoods and Services Tax – GSTDated:- 21-12-2016 NEW CONCEPTS OF SUPPLY IN REVISED GST LAW:- The revised GST Law introduces three new concepts of supply which are discussed in this update. COMPOSITE SUPPLY:- Section 2(27) defines this term as “composite supply” means a supply made … Continue reading “NEW CONCEPTS OF SUPPLY IN REVISED GST LAW”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-2038","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/2038","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2038"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/2038\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2038"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2038"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2038"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\nMIXED SUPPLY:- Section 2(66) defines this term as “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.
\nIllustration given in Revised GST Law: A supply of a package consisting of canned foods, sweets, chocolates, cakes, dry fruits, aerated drink 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 m<\/p>\n
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\n(b) a mixed supply comprising two or more supplies shall be treated as supply of that particular supply which attracts the highest rate of tax.
\nThe above provisions will definitely create disputes and litigation as whether the supply is composite or mixed will be dependent on facts and circumstances of a particular case. Moreover, the revenue department will consider a supply as composite or mixed according to the highest tax criteria. It was hoped that the GST regime would dispense with the classification disputes and lead to lesser litigation but introduction of above concepts will definitely ignite litigation.
\nPRINCIPAL SUPPLY:- Section 2(78) defines this term as “principal supply” means the supply of goods or services <\/p>\n
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