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TMI Blog2025 (4) TMI 869X X X X Extracts X X X X X X X X Extracts X X X X ..... the earlier, henceforth for the purposes of this Advance Ruling, the expression 'GST Act' would mean CGST Act and MGST Act. 1. FACTS AND CONTENTIONS - AS PER THE APPLICANT 1.1 M/s. Amardeep Udyog is a partnership firm primarily engaged in trading of goods which includes stationary products, readymade garments etc. 1.2 The Firm had received a purchase order from Brihan Mumbai Municipal Corporation ('BMC') on 11th June 2024 for supply of stationery items to students of Education Department of BMC. 1.3 Out of the many items that were proposed to be procured, Geometry Compass Box for Standard 4th to Standard 10th was to be procured. The HSN code mentioned in the Purchase order was 73102910 and the GST rate mentioned in the Purchase Order was 18% (i.e CGST 9% and SGST 9%). 1.4 Further, said Purchase Order contained the Descriptions of Stationery Items. It was mentioned that the Geometry Compass Box should contain 1 compass, 1 divider, 1 scale 15 cms, 1 set square 30°, 1 set square 45°, 1 set square 60°, 1 protractor 180°, 1 eraser, 1 pencil and 1 sharpner (Std 4th to 10th). 1.5 The Firm while supplying the product, classified the product under the HSN code 9017201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut or mathematical calculating instruments (for example, drafting machines, pantographs, protractors, drawing sets, slide rules, disc calculators); instruments for measuring length, for use in the hand (for example, measuring rods and tapes, micrometers, callipers), not specified or included elsewhere 9017 10 00 Drafting tables and machines, whether or not automatic u 9017 20 Other drawing, marking-out or mathematical calculating instruments: u 9017 20 10 Drawing and marking-out instruments u 9017 20 20 Mathematical calculating instruments u 9017 20 30 Pantograph u 9017 20 90 Other u 9017 30 Micrometers, calipers and gauges u 9017 30 10 Micro-meters and calipers Gauges: u 9017 30 21 Plug u 9017 30 22 Ring u 9017 30 23 Slip u 9017 30 29 Other u 9017 80 Other instruments: u 9017 80 10 Measuring rods and tapes and divided scales u 9017 80 90 Other u 9017 90 00 Parts and accessories Kg. 2.6 The product supplied by the Applicant is a Mathematical Drawing Instruments which are packaged in a box and the same is printed on the box and packaging. The applicant has attached pictures of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 45 deg., 1 set square 60 deg., 1 protractor 180 deg., 1 eraser, 1 pencil and 1 sharpener to BrihanMumbai Municipal Corporation. The applicant vide this application is seeking the correct classification and rate of tax on the aforementioned supply. 5.2. As the outset, Let's analyse the HSN 7310. Chapter 73 is applicable to the articles of iron or steel. On perusal of the description of HSN 7310 as reproduced in para 2.4, it is seen that the HSN 7310 is applicable to the goods made up of iron or steel that are in the nature of container or box. Thus, the entry at Sr. No. 180 in respect of 'Mathematical boxes, geometry boxes and colour boxes' is only in respect of the container box or the case that is made up of iron or steel. What the applicant is supplying is not just the box but various articles that are put in the box are also supplied along with it. Hence, HSN 7310 is not applicable to the box when supplied alongwith the articles contained in it. 5.3. We find that the applicant is supplying various items as detailed in para 5.1, placing them in a box, which is named as 'Kores Max-Mathematical Drawing Instruments'. A number of items are kept in the box by the applicant who sel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eceiver. If large number of service receivers of such bundle of services reasonably expect such services to be provided as a package, then such a package could be treated as naturally bundled in the ordinary course of business. b) Majority of service providers in a particular area of business provide similar bundle of services. For example, bundle of catering on board and transport by air is a bundle offered by a majority of airlines. c) Nature of the services offered is such that one is the main service and the other services combined with such a service are ancillary. d) Other illustrative indicators, not determinative but indicative of bundling of services in ordinary course of business are - There is a single price or the customer pays the same amount, no matter how much of the package they actually receive or use. The elements are normally advertised as a package. The different elements are not available separately. The different elements are integral to one overall supply - if one or more is removed, the nature of the supply would be affected." 5.5. We find that the said concept can also be equally applied for determining whether the goods supplied in a package c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tical Instruments for calculating 901720 12% II 3 Scale Instruments for measuring length, for use in hand 90178010 18% III 3 Sharpener Pencil Sharpener 82141010 12% II 4 Pencil Pencils with leads encased in a rigid sheath 96091000 12% II 5 Eraser Erasers 40169200 5% I 5.6. We find that Section 8 of the CGST Act, reads as under: - Tax liability on composite and mixed supplies-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. Accordingly, In this case the highest rate of tax is 18% (9% CGST + 9% SGST) for scale falling under Chapter 90178010 and therefore in terms of Section 8 of the CGST Act, 2017, we hold that the goods supplied by the applicant would be considered as a mixed supply and the same shall be treated as supply of Mathematical Instruments boxes and classified under Chapter Sub Headi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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