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is car repairing service composite supple

20 October 2017

is car repairing service composite supply.?

@ if one care repaired 10000
3000 auto parts 18% tax rate
5000 auto parts 28% tax rate
2000 repairing charge.

what rate to be charge ?
who is principle supply?

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14 Replies

CA Altamush Zafar (GST Consultant) (15907 Points)
Replied 20 October 2017

In my opinion its repairing service

1 Like

RAJA P M ("Do the Right Thing...!!!") (127072 Points)
Replied 20 October 2017

I saw the bill the same way...
I think it's mixed supply...!

Philip Kumar (168 Points)
Replied 20 October 2017

if both goods and services are provided by a single supplier it will be composite supply liable to collect higher rate of tax @ 28% otherwise as per the rates applicable

anshul aggarwal (Consultant) (1074 Points)
Replied 20 October 2017

It will be a mixed supply and tax will be charged at different rates as all spare parts installed in services does not make a single product even if supplier together.

1 Like

RAJA P M ("Do the Right Thing...!!!") (127072 Points)
Replied 20 October 2017

Yes... I agreed to Mr Anshul Aggarwal...!!!

Dr. ShamsheerKhan (Director of S S Associates) (968 Points)
Replied 20 October 2017

In my view

It's a composite supply

And if tax invoice is given by combing every thing involved then service work to be charged and all the rest goods involved thereto should be calculated as privacy supply rate of tax(i.e service work) irrespective of their corresponding tax rates.

1 Like

Dr. ShamsheerKhan (Director of S S Associates) (968 Points)
Replied 20 October 2017

In my view

It's a composite supply

And if tax invoice is given by combing every thing involved then service work to be charged and all the rest goods involved thereto should be calculated as primary supply rate of tax(i.e service work) irrespective of their corresponding tax rates.

1 Like

prasad Nilugal ( GST Practitioner & Accounts ) (14151 Points)
Replied 20 October 2017

Mr Zafar

Composite supply means a supply is comprising two or more good or services ,which are naturaly bundled and supply with each other in the ordinary course of busniess , one of which is principal supply . The item can not be supply separetly .

1 Like

CA Altamush Zafar (GST Consultant) (15907 Points)
Replied 20 October 2017

So???
Repair service can only be rendered by changing spare parts if required

1 Like

suraj sahu (45 Points)
Replied 21 October 2017

thanks sir

anshul aggarwal (Consultant) (1074 Points)
Replied 21 October 2017

There is a thin line difference between composite and mixed supply. It's easy to say a supply composite and tax at highest rate but in practical situation it's hard to sell goods to consumer charging higher tax that too b2c transaction.
suraj,
to avoid any confusion it's is better to make two invoices in such cases of confusion. one for parts and other for labour.
previously also this was followed. parts with VAt and labour with service tax separate invoices were issued by some.

anshul aggarwal (Consultant) (1074 Points)
Replied 21 October 2017

This cannot be challenged by any authority

Sabita Sahoo (622 Points)
Replied 24 October 2017

It is a composite supply and tax rate is 28% on total value plus repairing expenses.

CS Advocate Abhishek Goyal (M Com FCS LLB M-AIMA ) (13531 Points)
Replied 30 May 2022

Car repairing involves labour service and it may involve supply of spare parts as well as per the need of vehicle repair. in such cases it is a composite supply with principal supply being service of car since the intention here is not to supply spare parts but to render labour service.