COMPOSITE SUPPLY

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This discussion clarifies whether supplying aggregate and Granular Sub Base (GSB) along with transportation constitutes a composite supply under GST. The consensus is that it can be treated as such. In a composite supply, GST is applied to the total value, including freight charges, at the rate applicable to the principal supply. The recovery of royalty amounts from the client is also considered taxable as part of the overall supply.

vishwnath kumar

vishwnath kumar (Querist)

03 January 2020 DEAR SIR,
ACTUALLY WE ARE SUPPLYING AGGREGATE & GSB WITH ROYALTY TO OUR CUSTOMER
AND WE HAVE SUPPLIED AGGREGATE & GSB AT CLIENT'S DESTINATION
SO IN SORT WE ARE PROVIDING SUPPLY OF GOODS ALONG WITH TRANSPORTATION SERVICE
SIR MY QUESTION IS THAT CAN VE TREAT IT AS COMPOSITE SUPPLY
IF YES THAT WHAT WOULD BE RATE OF TAX
IF NO THAN IN THAT CASE ALSO WHAT WOULD BE RATE OF TAX ON DIFFERENT SUPPLIES

WE ARE ALSO RECOVERING ROYALTY AMOUNT FROM OUR CLIENT
THAN IS IOT ALSO LIABLE TO TAX
IT IS ACTUALLY ROYALTY REIMBURSEMENT

CA Anita Bhadra

CA Anita Bhadra (Expert)

04 January 2020 Yes , You can treat it as composite supply .

GST should be charged on the total value of supply. If the freight charge is included, then GST on freight charges has to be levied at the same rate of tax charged on supplyGSB stands for ?

What's the full form of GSB ?

vishwnath kumar

vishwnath kumar (Querist)

04 January 2020 Thanks
GSB stands for Granular Sub Base

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