Composite or mixed supply

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This discussion clarifies whether selling inverter batteries and UPS together constitutes a composite or mixed supply under GST law. It suggests that if the battery is integrated into the UPS, it's not a separate supply. For exchange transactions, where an old battery is traded for a new one, the GST is applied to the full value of the new battery, with specific valuation methods outlined for barter scenarios.

Kollipara Sundaraiah

Kollipara Sundaraiah (Querist)

02 October 2020 A gst regular scheme dealer new registered dealer inverter battery and ups both selling business.
Question:
1.Dealer sales transactions composite supply or mixed supply treatment in gst act.
2. old battery value Rs:3000/- received exchange of new battery value Rs:13,000/- . this transaction treatment in gst act.

CA Kushwanth AVSR

CA Kushwanth AVSR (Expert)

02 October 2020 1. It will be treated as Composite Supply If UPS has in-built batteries and it will be treated as mixed supply, if batteries were supplied separately with UPS as per this advance ruling - https://gstcouncil.gov.in/sites/default/files/appellate-order/WBAAAR-Appeal_NO-04-%202018_dt_25-07-2018.pdf

2. In case of barter system, value of supply will be considered sequentially:
i. Open Market Value of such supply.
ii. Total money value of the supply i.e. monetary consideration
plus money value of the non-monetary consideration.
iii. Value of supply of like kind and quality.
iv. Value of supply based on cost i.e. cost of supply plus 10%
mark-up.
v. Value of supply determined by using reasonable means
consistent with principles & general provisions of GST law. (Best
Judgement method)

For more info, you can check this CBIC Flyer - https://www.cbic.gov.in/resources//htdocs-cbec/gst/Valution%20in%20GST.pdf

Lekhraj sood

Lekhraj sood (Expert)

02 October 2020 1. In my view, if UPS supplied with battery fitted in it and then it is part of UPS and included in its price.So there is no question of mixed or composite supply.
2. In this case GST will be charged on Rs.13,000/-

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