Mixed and Composite Supply

Query :            

X Co. Sells the following Items through their Website given Below:

S.no. Item Name Tax Rate
1 A 18%
2 B 12%
3 C 18%

They have received an order on for all three Items. 

Order No. S.no. Item Name Tax Rate
IN-1 1 A 18%
2 B 12%
3 C 18%
Shipping Charges ?

Query is in the above case what should be tax rate on Shipping Charge should be levied on the above order.

Note : All Item are can be supplied individually (e.g. not dependent to each other).

 

 

 

Replies (5)
Quick Summary
This discussion clarifies the GST treatment for shipping charges when a customer orders multiple items with varying tax rates, such as items A (18%), B (12%), and C (18%). Since the items are not naturally bundled and can be sold individually, the supply is considered a 'mixed supply'. In such cases, the GST rate applicable to the shipping charge is the highest rate among the items, which is 18%.

Tax rate @ 18%
Yes GST rate for fright shall be 18%
GST Rate on Freight will be 18%. It is not a Composite Supply since they are not naturally bundled.

not naturally bundled > then Mixed Supply 

Rate for the freight is 18 % 

Mixed supply as not naturally bundelled supply, hence Gst rate levied on shipping charge is 18%.

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