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composite and mixed work

Vikas (Accountant) (78 Points)

04 August 2017

what is definition of composite and mixed work and what is treatment thereof.

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CA Saloni (Manager-Accounts & GST Consultant) (5124 Points)
Replied 04 August 2017

“composite supply” means a supply made by a taxable person to a
recipient consisting of two or more taxable supplies of goods or services or both,
or any combination thereof, which are naturally bundled and supplied in conjunction
with each other in the ordinary course of business, one of which is a principal
supply;
Illustration.— Where goods are packed and transported with insurance,
the supply of goods, packing materials, transport and insurance is a composite
supply and supply of goods is a principal supply;
“mixed supply” means two or more individual supplies of goods or services,
or any combination thereof, made in conjunction with each other by a taxable person
for a single price where such supply does not constitute a composite supply.
Illustration.— A supply of a package consisting of canned foods, sweets,
chocolates, cakes, dry fruits, aerated drinks and fruit juices when supplied for a
single price is a mixed supply. Each of these items can be supplied separately and is
not dependent on any other. It shall not be a mixed supply if these items are supplied
separately;