Tax liability on composite and mixed supplies– Section 8 of CGST Act
|
Description |
Composite Supply |
Mixed Supply |
| Naturally bundled |
Yes |
No |
| Each supply available for supply individually |
No |
Yes/No |
| One is predominant supply for recipient |
Yes |
Yes/No |
| Other supply(ies) are ancillary or they are received because of predominant supply |
Yes |
No |
| Each supply priced separately |
Yes/No |
No |
| Supplied together |
Yes |
Yes |
| All supplies can be goods |
Yes |
Yes |
| All supplies can be services |
Yes |
Yes |
| A combination of one / more goods and one / more services |
Yes |
Yes |
While, the above tests could be guiding principles in determining as to whether a supply is composite or mixed supply the end user test could be adopted as one of the criteria; Every supply will have to be independently analysed