TMI BlogComposite Supply Section 8(a)X X X X Extracts X X X X X X X X Extracts X X X X ..... of tax. But not all supplies will be such simple and clearly identifiable supplies. Some of the supplies will be a combination of goods or combination of services or combination of goods and services both. Each individual component in a given supply may attract different rate of tax. The rate of tax to be levied on such supplies may pose a problem in respect of classification of such supplies. It is for this reason, that the GST Law identifies composite supplies or mixed supplies and provides certainty in respect of tax treatment under GST for such supplies. Composite Supply under GST As per definition as stated in Section 2(30) Composite supply means a supply made by a taxable person to a recipient consisting of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and drinks to persons other than patients, like attendants of the patients and when supplied to the patients not as advised by the doctor or nutritionists, then such supplies would not form part of the composite supplies and would attract applicable tax. The applicant can claim credit of input tax paid on inward supplies, but the credit of input tax claimed which is attributable to such supplies of healthcare services needs to be reversed. Determination of tax liability of Composite Supply As Per section 8(a) , The tax liability on a composite or a mixed supply shall be determined in the following manner, namely: - a composite supply comprising two or more supplies, one of which is a principal supply, shall be treated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mposite supply involves supply of goods as principal supply, such composite supply would qualify as supply of goods and accordingly, the provisions relating to time of supply of goods would be applicable. Some clarifications on composite or mixed supply given by CBIC Clarification on taxability of printing contracts The printing industry in India in particular faces a dilemma in determining whether the nature of supply provided is that of goods or services and whether in case certain contracts involve both supply of goods and services, whether the same would constitute a supply of goods or services or if it would be a composite supply and in case it is, then what would constitute the principal supply . It i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... apter 48 or 49 of the Customs Tariff. Retreading of tyres is supply of services but supply of retreaded tyre is goods, is composite supply and pre dominant element is process of retreading which is services. Rubber used for retreading is an ancillary supply. [ Circular No. 34 / 8 / 2018 -GST dated 01-March 2018 ] Bus body building classification of this composite supply, as goods or service would depend on which supply is the principal supply which may be determined on the basis of facts and circumstances of each case. [ Circular No. 34 / 8 / 2018 -GST dated 01-March 2018 ] Supply, erection and assembly of air conditioning plant is composite supply not a work contract and principal supply ..... X X X X Extracts X X X X X X X X Extracts X X X X
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