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multiple supply
if a jeweller raising a invoice including the value of goods and making charges in single invoice. can we treat it as multiple supply? if yes, under which section it will fall. please clarify.
Replies (6)
It will be composite supply as defined in Sec 2(30). Here principal supply is the sale of jewellery, so the tax rate attracting sale of jewellery will also apply on the making charges.
Which is highest tax rate that is applying the bill
No Mr. raja. Highest tax will not apply in this case. As Mr. satyanarayana said - rate of sale of jewellery is 3% and rate of making charges is 5% if provided individually. But this is a case of composite supply, so on the whole bill amount, 3% tax rate will be charged as it is the rate applicable on the principal supply(sale of jewellery).
Please refer Sec 8(a) of CGST Act, your answer lies in that section.
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