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2023 (1) TMI 85 - AAR - GSTClassification of supply - principal supply - Composite Supply or Mixed Supply - rate of GST - supply of Pencils Sharpener along with Pencils - supply of sharpener having a nominal value along with the kit - supply of Sharpener along with the kit having a nominal value will have an impact on rate of tax or not - HELD THAT:- The applicant supplies Doms Al Pencil. Doms Smart Kit and Doms My First Pencil Kit do not get covered under the category of 'composite supply' - the applicant supplies of Doms Al Pencil, Doms Smart Kit and Doms My First Pencil Kit satisfied all the conditions of mix supply. Further, we observed that the illustration given under the definition of Mix supply is similar to all types of the supplies of applicant. Therefore, we hold that all the three types of supply covers under the category of 'mixed supply' as defined under Section 2(74) of CGST Act, 2017. A mixed supply containing more than two supplies shall be treated as a supply of that particular supply which attracts the higher rate of tax in the mix supply. We hold that the applicant is required to use the HSN code of the particular supply which attracts higher rate of tax among all the taxable supplies containing in a pack/box. The applicant in their addition submission has referred the General Interpretation of Rules of Custom Tariff Act, 1975 and argued that as per the GIR the classification of the pack/box containing multiple of goods will be decided by the essential characteristics of the goods containing in the packet - We find that the argument of the applicant does not hold much water as the present application is filed by the applicant for deciding the nature of supply and not for deciding the classification of all the taxable supplies containing in the box/pack. The applicant all the supplies are covered under the category of Mixed supply hence as per the provision of mixed supply, the supply which attracts higher rate of tax shall the applicable rate for the supply. The applicant all the supplies i.e. kit if containing Sharpener and if tax rate of that particular sharpener is highest among all the product containing in that particular supply i.e. kit, in such case the applicant is liable to pay the highest tax rate and HSN code is to be used of that particular supply having highest rate.
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