GST % for supply


This query is : Resolved 

Quick Summary
A business selling sarees online, currently subject to 5% GST, is considering adding a gift-wrapping option. They are concerned that if the gift box incurs an 18% GST, it might also increase the GST on shipping and potentially the sarees themselves if deemed a mixed supply. They are seeking clarification on whether this would be considered a composite supply, where only the 5% rate would apply.

(Querist)
21 February 2023 We are selling Sarees online which attracts 5% GST, we are thinking of enabling the "Gift box" option where customer can choose if they want to gift wrap the product.

If Gift box attracts 18% then shipping also attracts 18% (higher tax rate) and if at all the supply is considered as Mixed then the Saree which is 5% now will also attract 18%?

21 February 2023 It's a composite supply only 5% tax applicable.

Shobia (Querist)
22 February 2023 Thank you for your response sir!


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