Tax rate

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This query is : Resolved

Krishnakumar (Querist)

07 February 2018 Dear Sir,
We are in the industrial refrigeration equipment's manufacturing , supply and installation services and handling turnkey projects. Kindly clarify making a single invoice for the items Tax rate 18 % and 28% ,will all the items in the invoice will attract highest Tax rate i.e 28%.

CA S K MISHRA

CA S K MISHRA (Expert)

07 February 2018 the subject supply is a "composite supply" but not works contract. As such, GST rate applicable for principal item i.e refrigeration equipment will be applied on whole supply.
For conceptual clarity on GST refer following link.

https://www.amazon.in/dp/194832105X
https://www.amazon.in/dp/164249030X

Krishnakumar

Krishnakumar (Querist)

07 February 2018 Dear Sir,
Thanks for your reply .
Kindly clarify the following.
As I told we are taking the project under turnkey basis for industrial refrigeration and for examble we need to supply 1 to 10 items for the said project. Out of 10 items some of the items HS showing 18% GST and some of items are showing 28% as per the HS code .
In this scenario will all the items in the invoice will attract highest Tax rate i.e 28%.

With Regards,
R.Krishnakumar

CA S K MISHRA

CA S K MISHRA (Expert)

07 February 2018 "Composite Supply" is supply which is combination of two or more supply which are "naturally bundled". The Individual item may have different HSN/SAC code & may attract different GST rates. But for the whole supply, It will be treated as "supply of Goods" & HSN of principal item will apply & the whole supply will attract a single GST rate i.e GST Rate of Principal item.

For example, Supply & Installation of TV. GST on TV is 28% (HSN Apply), where as Installation is a service, which attract GST of 18% (SAC) apply. But this is a composite supply, so "Supply & Installation of TV" will attract GST of 28% (HSN Apply)
For conceptual clarity on GST refer following link.

https://www.amazon.in/dp/194832105X (GST)
https://www.amazon.in/dp/164249030X

ND (Expert)

08 February 2018 In my view the main activity done by you is manufacturing and other are the incidental activities. Therefore value of supply shall include all the charges in respect of supply of goods. Therefore applicable rate of GST will be that of your principal product and not that of supply and installation.

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