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Mixed Supply Section 8(b) - GST Ready Reckoner - GSTExtract Mixed Supply As per section 8(b) CGST ACT As per section 2(74) of CGST Act, 2017 Mixed Supply means two or more individual supplies of goods or services, 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. Illustration.- A supply of a package consisting of canned foods, sweets, chocolates, cakes, dry fruits, aerated drinks and fruit juices when supplied for a single price is a mixed supply. Each of these items can be supplied separately and is not dependent on any other. It shall not be a mixed supply if these items are supplied separately; In order to identify if the particular supply is a Mixed Supply, the first requisite is to rule out that the supply is a composite supply. A supply can be a mixed supply only if it is not a composite supply. As a corollary it can be said that if the transaction consists of supplies not naturally bundled in the ordinary course of business then it would be a Mixed Supply. Once the amenability of the transaction as a composite supply is ruled out, it would be a mixed supply, classified in terms of a supply of goods or services attracting highest rate of tax. The following illustration given in the Education Guide of CBIC referred to above can be a pointer towards a mixed supply of services: - A house is given on rent one floor of which is to be used as residence and the other for housing a printing press. Such renting for two different purposes is not naturally bundled in the ordinary course of business. Therefore, if a single rent deed is executed it will be treated as a service comprising entirely of such service which attracts highest liability of service tax. In this case renting for use as residence is a negative list service while renting for non-residence use is chargeable to tax. Since the latter category attracts highest liability of service tax amongst the two services bundled together, the entire bundle would be treated as renting of commercial property. Determination of tax liability of Mixed Supplies The tax liability on a mixed supply shall be determined in the following manner, namely: - 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. Time of supply in case of mixed supplies The mixed supply, if involves supply of a service liable to tax at higher rates than any other constituent supplies, such mixed supply would qualify as supply of services and accordingly the provisions relating to time of supply of services would be applicable. Alternatively, the mixed supply, if involves supply of goods liable to tax at higher rates than any other constituent supplies, such mixed supply would qualify as supply of goods and accordingly the provisions relating to time of supply of services would be applicable. Some clarifications on mixed supply given by CBIC Supply of UPS and battery Circular No. 163 / 19 / 2021 -GST date 06 Oct. 2021. Entry fee to casinos : GST at the rate of 28% was leviable on the services by way of access/entry to Casinos on payment of consideration/entry fee which compulsorily included price of one or more other supplies such as food, beverages etc.; that being a mixed supply . However, optional supplies made independently of the entry ticket would be taxed at the rates as applicable on such supplies. CASE LAWS IN RE: M/S. DOMS INDUSTRIES PVT. LTD. (2023 (1) TMI 85 - AUTHORITY FOR ADVANCE RULING, GUJARAT ) The supply of pencils sharpener along with pencils is considered a mixed supply under Section 2(74) of the CGST Act, 2017. The applicant is required to use the HSN code of the particular supply which attracts the higher rate of tax among all the taxable supplies containing in a pack/box. If the tax rate of the sharpener is the highest among all the products in the kit, the applicant is liable to pay the highest tax rate and use the HSN code of that particular supply having the highest rate.
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