what is the GST rate for Excavation of Sand & Transportation service
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Quick Summary
This discussion clarifies the Goods and Services Tax (GST) rate applicable to the excavation and transportation of sand. It explores whether these services constitute a composite supply. Based on an AAR case, the consensus suggests that when sand excavation and transportation are bundled as a composite supply, the rate is 5% as the principal supply is natural sand.
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;