Chartered Online Celebrates 1,00,000 Plus Subscribers

10 April, 2017

Print to PDF

What is Mixed Supply Vs Composite Supply under CGST - A Quick Glance

Mixed Supply Vs Composite Supply under CGST 

Composite Supply

As per Section 2 (30) “composite supply” means a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, 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;

For Example :- Where goods are packed and transported with insurance, the supply of goods, packing materials, transport and insurance is a composite supply and supply of goods is a principal supply.

Mixed Supply

As per Section 2 (74) “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

For Example: 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.

Key Points 

  • Mixed Supply does not Constitute Composite Supply
  • When Not Naturally Bundled but for one price 
  • Principal Supply is not specific Element in Mixed Supply
  • Principal Supply Must Exist as pre-condition to composite supply



Tax liability on composite and mixed supplies

As per Section 8

The tax liability on a composite or a mixed supply shall be determined in the following manner, namely:-

(a) 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; and

(b) a mixed supply comprising two or more supplies shall be treated as a supply of that particular supply which attracts the highest rate of tax.


0 Comments:

Post a Comment