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Composite supply
In case of composite supply if principal supply is exempt supply then what should be rate of tax in value of composite supply?
Replies (5)
Quick Summary
then whole bundle shall be exempt
Exempt whole
Whole supply will be exempt.
It will be considered as wholly exempt
As per the Provision of Section 8 of the CGST Act 2017 i.e. "TAX LIABILITY ON COMPOSITE and MIXED SUPPLY" :
(a). A Composite Supply comprising two or more supplies, one of which is a PRINCIPAL Supply, shall be treated as a supply of such "PRINCIPAL SUPPLY".
Hence by analysing the Provision we find that in case of Composite Supply, the Rate of PRINCIPAL SUPPLY is taken into consideration.
Since your Principal Supply is Exempted, therefore, the Composite Supply shall be treated as "EXEMPT SUPPLY".
Regards.
(a). A Composite Supply comprising two or more supplies, one of which is a PRINCIPAL Supply, shall be treated as a supply of such "PRINCIPAL SUPPLY".
Hence by analysing the Provision we find that in case of Composite Supply, the Rate of PRINCIPAL SUPPLY is taken into consideration.
Since your Principal Supply is Exempted, therefore, the Composite Supply shall be treated as "EXEMPT SUPPLY".
Regards.
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