COMPOSITE AND MIXED SUPPLIES - Handbook of GST Law & Procedures (CBIC) [October 2024] - GST

8. COMPOSITE AND MIXED SUPPLIES 8.1. Composite supply is a supply consisting of two or more taxable supplies of goods or services or both or any combination thereof, which are bundled in natural course and are supplied in conjunction with each other in the ordinary course of business and where one of which is a principal supply (the main goods or service). For example, when a consumer buys a television set and he also gets warranty and a maintenance contract with the TV, such supply is a composite supply. In this example, supply of TV is the principal supply, warranty and maintenance service are ancillary. 8.2. In Composite supply the principal supply shall be considered for determining the rate of tax. 8.3. Mixed supply is combination of more than one individual supplies of goods or services or any combination thereof made in conjunction with each other for a single price, which can ordinarily be supplied separately. For example, a shopkeeper selling refrigerator along with storage water bottles. Bottles and the refrigerator can easily be priced and sold separately. Another example is the supply of a package consisting of sweets, chocolates, dry fruits, supplied for a single price. Each of these items can be supplied separately and is not dependent on each other. 8.4. Mixed supply would be treated as supply of that particular goods or services which attracts the highest rate of tax.