Exempted Supply in light of Composite Supply

Chandani Nawalkha | Last updated: 05 November 2020

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This article delves into the complexities of composite supply and its interaction with exempt supplies under GST law. While exemptions are intended to benefit the public, the article highlights instances where tax authorities have sought to tax exempt supplies by classifying them as part of a composite supply. It examines key rulings, such as Columbia Asia Hospitals, which extended exemptions, and M/s Keysight Technologies, which did not satisfy the conditions for composite supply due to an exempt element. The piece argues for clearer departmental guidance to prevent injustice and litigation.

As a principle, exemptions are extended in tax statues to grant relief or ease the burden of consumers keeping in view the interest of the general public at large. Thus inclusion of an exempted supply under the tax net by combining the same with a taxable supply under the notion of them being compos

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About the Author

Chandani Nawalkha

Certified GST member from Institute of Chartered Accountants of India Possess 5+ year experience with Functional Skills:Financial Analysis,Financial Reporting,Financial Account Analysis,Financial Projections,Management Accounting,Liasioning with external Auditor,Asset Management,Reporting ,Documentation,Audits Proce ... Read more

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