Under GST Composite and Mixed Supply

By | April 27, 2022

About – Under GST Composite and Mixed Supply

All regarding Composite Supply and Mixed Supply under the GST:

As per Sec. 2(30) of CGST Act of 2017, ‘Composite Supply’ could be a quiet offer created by a dutiable person to a recipient that has two or more dutiable supplies comprising of products or services or each, or their combination, that are naturally bundled and provided in conjunction to every different within the standard course of business out of that one constitutes to be a Principal supply (As per Sec. 2(90) of CGST Act of 2017 whereby one supply constitutes to be of pre-dominant component whereas different supplies are subsidiary to the previous one).

E.g. once an individual purchases a T.V. set, he or she conjointly gets some quiet guarantee and different allied services within the series of installation and maintenance and suck kind of supply could be a composite supply  Here, supply TV is that the principal supply whereas guarantee and maintenance service are subsidiary or supplementary to such principal supply.

Taxability of Composite Supply: As per Sec. 8(a) of CGST Act of 2017, A composite supply consisting of two or a lot of supplies out of that one constitutes a principal offer, shall be treated as a supply of such principal offer.

E.g. I’m selling a laptop computer with luggage. the speed of GST on laptop computer and bag are completely different, however here since the laptop computer constitutes to be a principal offer, the purchase rate of the laptop computer shall be applicable on such composite offer.

 As per Sec. 2(74) of CGST Act of 2017, Mixed offer suggests that two or more than two individual supplies of products or services, or any combination therefrom, created in conjunction with one another by a dutiable person for one worth wherever such supply is not to be considered as a composite supply

E.g. If i’m selling sweets, candies, chocolates, cakes, dry fruits further as cold drinks from my outlet, and if such supplies are provided in an exceedingly single supply, then an equivalent are termed as Mixed supply as all of such product is sold-out on an individual basis with their individual costs, and if I’m not charging one or uniform pricing, then such supply won’t be referred as mixed supply.

 Taxability of Mixed Supply:

As per Sec. 8(b) of the CGST Act of 2017, A mixed supply consisting of  2 or more supplies will be treated as a supply of that individual supply that attracts the very best rate of tax.

For E.g. M/s ABC is selling out chocolates and contemporary Juices. The GST rate of chocolate is 28% & contemporary juice is vulnerable to GST at 12%. This is the best example of mixed supply & would be vulnerable to GST at 28%(a higher of 12% or 28% is applied).

Some determined Case Laws:


 Samsung Republic of India Ltd. v. CCI

  • Composite supply in reference to mobile was understood
  • Allahabad HC
  • Supply consisting of mobile with charger may be a composite supply as there’s no intention to result in the separate sale of the charger. Mobile-principal; charger- auxiliary.
  • GST is supported by principal supply only.

CASE- Switch Avo Electrical Pvt. Ltd. (AAR)

  • AAR and AAAR both rules
  •  Question- Supply of UPS together with the battery. whether or not this can be mixed supply or composite supply?
  • Aare aforesaid represent to be mixed supply. Appeal created to AAAR.
  • Appellants who oppose
  •  UPS cannot operate while not battery ANd battery is an integral a part of UPS. Bundled along and provided in conjunction with one another.
  •  The battery is natural a part of the UPS
  • Supply of device UPS with an external battery ought to be thought of as a composite supply and not as a mixed supply
  •  AAAR
  • once UPS is provided with an in-built battery, it constitutes to be composite supplied under s.2(30) and if it’s oversubscribed on an individual basis, that’s not the integral battery, then mixed supply.

CASE: Sandvik Asia Pvt. Ltd. (Reference- 2018 dominion AAR)

  •  Supply maintenance services in relevant machines and provide different merchandise and services, in relevant machines.
  • Principal supply – supply of maintenance, provision of goods/other services- supportive services associated with principal supply.
  • One supply is primary and in relevance to that primary supply, different may be naturally connected. (When providing of products and services takes place along, what’s necessary is service taking place)
  • AAR
  •  Represent to be composite supply
  • GST is going to be determined supported principal supply.

CASE: Abbott attention Pvt. Ltd. (Ref, 2018, AAR)

  • ­Question- Supply of medical instruments together with medicines- whether or not represent be mixed supply or composite supply?
  • AAR
  • In relevance supply of drugs, although supply instruments, which will be thought of as composite providing
  • . Medicines, together with instruments, happen to be associated and supportive products.

CASE: Cable Corporation of India Ltd. (Maharashtra AAR)

  • Although two separate agreements are rendered within the type of transportation services and works contract, however since each is obsessed with one another, thus the human couldn’t escape the GST @18% on such services as each  indiscrete contract that aren’t freelance of every different, and GST is consequently levied as per Sr. No. 18 of Notification No. 11/2017, dated 28/06/2017, and thus doing artificial bifurcation of the scope of labor and contracts stands impermissible.

CASE: In Re Kailash Chandra (2019) (AAR Rajasthan)

  •  command that supply of transportation, installation, and authorization of Reverse diffusion (RO) plant and O&M works by a human for the government comes under the Composite

Checklist list of choosing Composite or Mixed Supply:

NatureComposite SupplyMixed Supply
Naturally BundledYesNo
Together SuppliedYesYes
Recipient’s one predominant supplyYesNo
All supplies are decently goodYesYes
All supplies as servicesYesYes
Can be separately suppliedNoYes
Supplies and services are good as wellYesYes
Each supply having different pricesNoNo
Other supplies are not “aimed in itself” for recipientYesNo

Note: at the side of the cited case laws, the readers also can ask such alternative determined cases further as Circulars as ar being issued by the authorities from time-to-time for instructive the problems of composite/mixed supplies for various products and /services.


Disclaimer:- The complete contents of this document are ready on the premise of relevant provisions and rules and as per the data existing at the time of the preparation. Though care has been taken to confirm the accuracy, completeness, and reliability of the data provided, I assume no responsibility thus. Users of this info are expected to ask about the relevant existing provisions of applicable Laws. The user of the data agrees that the data isn’t an expert recommendation and is subject to alternate without noticing. I assume no responsibility for the implications of the use of such info.

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Category: GST