{'fraction_non_alphanumeric': 0.03258145363408521, 'fraction_numerical': 0.006265664160401002, 'mean_word_length': 5.214007782101167, 'pattern_counts': {'":': 0, '<': 0, '<?xml version=': 0, '>': 0, 'https://': 0, 'lorem ipsum': 0, 'www.': 0, 'xml': 0}, 'pii_count': 0, 'substrings_counts': 0, 'word_list_counts': {'cursed_substrings.json': 0, 'profanity_word_list.json': 0, 'sexual_word_list.json': 0, 'zh_pornsignals.json': 0}}
Composite and Mixed Supplies Under GST: Demystifying the Conceptual Tenets

Goods and Services Tax (GST) was introduced in India from July 2017. It is a tax on ‘supply’ of goods and services. In the practical mechanics of GST, identification of the supply (technically known as ‘classification’) is crucial because it determines the rate of tax, time of tax liability, procedural mechanism such as for invoicing, compliances, etc. The ascertainment of the correct classification is therefore the starting point for complying with the GST law. Business dynamics, however, are not straight forward and therefore it is not correct to expect complete segregation of goods and services being supplied in each transaction. In order to address commercial realities, world over it is recognised that there can be a ‘bundle’ of supplies in a single transaction. This concept is adverted differently under distinct laws. For illustration, under the erstwhile Service Tax law of India, this concept was explained through the ‘bundled supply’ concept. Under the GST laws, the concepts of ‘composite supply’ and ‘mixed supply’ have been evolved to address such instances of bundle of supplies. This article demystifies these two concepts in the GST context by adverting to their conceptual nuances, application, implication, etc. This article is divided into the following sections; 1. Introduction 2. Differentiating ‘Principal Supply’ and ‘Ancillary Supply’ 3. Appreciating Composite Supply 4. Appraising Mixed Supply 5. Implications of classifying supplies as Composite Supply or Mixed Supply 6. Conclusion