GST on sales of Tractor Cultivator and Hood
This query is : Resolved
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11 December 2021
A dealer is selling tractor with its hood and cultivator for Rs.6,25,000 which includes cost of three items and charging GST @12%. In the invoice he is mentioning three items but putting consolidated value as Rs.6,25,000. Rate of GST on Tractors and Cultivators is 12% and that on Hood is 18%. My queries are :
1. Whether this will be case of composite supply or mixed supply ?
1a. If ii is composite supply, then the rate of GST on Tractor shall be applicable irrespective of the fact that Hood having GST rate of 18% is also supplied?
1b. If it is a mixed supply then the rate of GST would be 18% on whole amount as is applicable to Hood irrespective of the fact that its cost is just Rs.2,000 while tractor costs Rs.6,00,000 and cultivator costs Rs.23,000 ?
2. If the separate amount is not being charged, can it be treated that tractor alone is sold and cultivator and hood are supplied free of cost and in that case can the ITC on these items may not be allowed to be claimed and if claimed will have to be reversed?
1. Whether this will be case of composite supply or mixed supply ?
1a. If ii is composite supply, then the rate of GST on Tractor shall be applicable irrespective of the fact that Hood having GST rate of 18% is also supplied?
1b. If it is a mixed supply then the rate of GST would be 18% on whole amount as is applicable to Hood irrespective of the fact that its cost is just Rs.2,000 while tractor costs Rs.6,00,000 and cultivator costs Rs.23,000 ?
2. If the separate amount is not being charged, can it be treated that tractor alone is sold and cultivator and hood are supplied free of cost and in that case can the ITC on these items may not be allowed to be claimed and if claimed will have to be reversed?
CA R SEETHARAMAN
(Expert)
11 December 2021
It's a composite supply, single rate of GST can charged as applicable to main supply.
12 December 2021
The invoice is like this:
Tractor 1 No. Rs.6,25,000
Cultivator 1 No
Hood 1 No.
No amount is mentioned against two items.
May this mean that Cultivator and Hood are supplied free of cost ? And if free then do one need reverse the ITC on such free supplies ?
Tractor 1 No. Rs.6,25,000
Cultivator 1 No
Hood 1 No.
No amount is mentioned against two items.
May this mean that Cultivator and Hood are supplied free of cost ? And if free then do one need reverse the ITC on such free supplies ?
CA R SEETHARAMAN
(Expert)
12 December 2021
It will not be considered as free supply. It will be composite supply. ITC reversal not required.
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