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Composite Supply [Sec 2(30)]  It comprises

  • two or more taxable supplies of G/&S or any combination thereof
  • naturally bundled & supplied in conjunction with each other in ordinary course of business
  • one of which is a principal supply

 Tax Treatment  treated as a supply of such principal supply.

 GST Rate Rate applicable to Principal supply will be levied on whole supply.

 Principal supply: Supply of G/&S which constitutes predominant element of a composite supply & to which other supply forming part of that composite supply is ancillary.

Ex: When a consumer buys a television set & he also gets mandatory warranty & a maintenance contract wit TV, this supply is a composite supply. In this example, supply of TV is the principal supply, warranty & maintenance services are ancillary.

Ex: A travel ticket from Mumbai to Delhi may include service of food being served on board, free insurance, & the use of airport lounge. In this case, the transportation of passenger, constitutes the pre-dominant element of the composite supply, & is treated as the principal supply & all other supplies are ancillary.

Mixed Supply [Sec 2(74)]  It comprises

  • two or more individual supplies of G/&S 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.

Note: Individual supplies are independent of each other & are not naturally bundled.

Tax Treatment  treated as supply of that particular supply that attracts Highest Rate of Tax.

Ex: A supply of a package consisting of canned foods, sweets, chocolates, cakes, dry fruits, aerated drink & fruit juices when supplied for a single price is a mixed supply. Each of these items can be supplied separately & is not dependent on any other. It shall not be a mixed supply if these items are supplied separately.

Ex: A shopkeeper selling storage water bottles along with refrigerator. Bottles & refrigerator can easily be priced & sold independently & are not naturally bundled. So, such supplies are mixed supplies.


Q What are the guiding principles for determining whether a supply is a composite supply or mixed supply?

Ans: While there are no infallible tests for such determination, the following guiding principles could be adopted to determine as to whether it would be a composite supply or a mixed supply. However, every supply should be independently analysed.

Description Composite Supply Mixed Supply
Naturally bundled Yes No
Supplied together Yes Yes
Can be supplied separately No Yes
One is predominant supply for recipient Yes No
Each supply priced separately No No

Q. Mr. A booked a Rajdhani train ticket, which includes meal. Is it composite supply or mixed supply?


 It is a bundle of supplies. It is a composite supply where the products cannot be sold separately. Transportation of passenger is the principal supply. Rate of tax applicable to principal supply will be charged to whole bundle.

 Therefore, rate applicable to transportation of passengers by rail will be charged by IRCTC on booking of Rajdhani

Q. Space Bazar offers a free bucket with detergent purchased. Is it composite supply or mixed supply? Assume rate of GST for detergent @28% & bucket @18%.


 This is the case of a mixed supply as supply of bucket with detergent is not naturally bundled.

 These items can be sold separately.

 Product which has the higher rate, will apply on the whole mixed bundle.

Q. Mr. Ravi being a dealer in laptops, sold a laptop bag along with the laptop to a customer, for Rs. 55,000. CGST & SGST for laptop @18% & for laptop bag @28%. What would be the rate of tax leviable? Also find GST liability.

 Laptop bag is supplied along with the laptop in the ordinary course of business.

 Thus it is a case of composite supply, principal supply being laptop & the bag is an ancillary supply.

 Therefore, rate of tax to the whole supply would that as applicable to the laptop.

 Hence, applicable rate of GST 18% on Rs. 55,000. CGST is Rs. 4,950 & SGST is Rs. 4,950


 Servicing of cars involving supply of both goods (spare parts) & services (labour) where the value of Goods & Services are shown separately.

 Goods & services would be liable to tax @ applicable rates to such goods & services separately.

Activities/transactions Principal supply
Supply of printed books,
pamphlets, brochures,
envelopes, annual reports,
leaflets, cartons, boxes etc.,
printed with design, logo,
name, address or other
contents supplied by the
recipient of such printed
[Printing Business]
In such cases, only content is supplied by the publisher or the person who owns the usage rights to the intangible inputs while the physical inputs including paper used for printing belong to the printer, supply of printing [of the content supplied by the recipient of supply] is the principal supply & therefore such supplies would constitute supply of service.

In case of supply of printed envelopes, letter cards, printed boxes, tissues, napkins, wall paper etc. by the printer using its physical inputs including paper to print the design, logo etc. supplied by the recipient of goods, predominant supply is supply of goods & supply of printing of the content [supplied by recipient of supply] is ancillary to principal supply of goods & therefore such supplies would constitute supply of goods. [CN 11/11/2017

Retreading of tyres Pre-dominant element is process of retreading which is a supply of service. Rubber used for retreading is an ancillary supply. Supply of retreaded tyres, where the old tyres belong to the supplier of retreaded tyres, is a supply of goods [Circular No. 34/8/2018]
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