Composite & Mixed Supply
The expression “supply” simply means all forms of supply of goods/services. It is made for a consideration during the course of business and includes the following:
- Import of services for a consideration (if even it is not in the course or furtherance of business)
Certain activities specified in Schedule I of GST Act will also be treated as supply.
a composite supply would mean 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;
The tax rate of the principal supply will apply on the entire supply in case of composite supply.
a 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;
The tax rate of the supply which attracts high rate will apply on the entire supply in case of mixed supply.