Composite Supply vs Mixed Supply
Query (Issue) Started By: – prakash kumar Dated:- 17-6-2017 Last Reply Date:- 16-7-2017 Goods and Services Tax – GST
Got 11 Replies
GST
Dear Professional Colleagues,
\nI want to raise a practical issue with respect to GST implementation.
\nWe 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.
\nWhether said supply is composite supply or mixed supply? What will be the rate of tax applicable on said supply?
\nIf it is mixed supply, can we raise separate bill for UPS & Battery? Advice the best possible way.
\nThank you for your valuable time.
\nReply By Govind Gupta:
\nThe Reply:
\nthe question to be asked in context of composite supply whether the items are naturally bundled and one of the item is prom<\/p>\n
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Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ash kumar: = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n e above, your situation conforms to 'mixed supply' and not to 'composite supply'. Hence opinion already given by me, Sh.Ganeshan Kalyani, Sir and supported by Sh.Mukund Thakkar Sir is correct. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" Composite Supply vs Mixed Supply Query (Issue) Started By: – prakash kumar Dated:- 17-6-2017 Last Reply Date:- 16-7-2017 Goods and Services Tax – GSTGot 11 RepliesGSTDear 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 … Continue reading “Composite Supply vs Mixed Supply”<\/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-3702","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/3702","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=3702"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/3702\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3702"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3702"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3702"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\nThe Reply:
\nDear all Respected colleagues,
\nThank you for your valuable comments.
\nBut, 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"?
\nPlease guide me through.
\nReply By MUKUND THAKKAR:
\nThe Reply:
\nWe are a manufacturer as well as trader of UPS (Static Converter). We supply battery along with UPS. UPS(Static Convertors)
\nyour 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.
\nReply By KASTURI SETHI:
\nThe Reply:
\nDifference between both term<\/p>\n
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\nReply By Jhankar Nathvani:
\nThe Reply:
\nThere should some important facts about this matter need to consider:
\n1) 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.
\n2) There are some UPS have inside battery, those are imported with Inside battery and IGST applied at the time of import is 18%
\n3) The UPS need longer back up, connect battery outside the UPS, that is just different version of UPS having battery inside
\nIf there is different HSN code for the UPS with battery inside or battery outside ?
\nThere is no clarification on the schedule of GST about inside battery or outside battery.
\nThe opinion here recall the story of 4 blind discribe elephant, every one is true from one<\/p>\n
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