supply

Composite Supplies are naturally bundled whereas Mixed Supplies are goods/services which can be supplied individually also. A Principal supply can be identified in Composite supplies but in Mixed Supplies, there will not be any Principal supply since they're not connected with each other.

Eg for composite supply - Laptop with laptop bag
mixed supply - 1kg of Coffee powder and a tablespoon for a single fixed rate.

Example 1

Booking train tickets: You are booking a Rajdhani train ticket which includes meal. It is a bundle of supplies. It is a composite supply where the products cannot be sold separately. You will not buy just the train meal and not the train ticket. The transportation of passenger is, therefore, the principal supply.

 

Rate of tax applicable to the principal supply will be charged to the whole composite bundle. Therefore, rate of GST applicable to transportation of passengers by rail (5%) will be charged by IRCTC on the booking of Rajdhani ticket.

 

Example 2: Buy detergent Get bucket free

Many shops offer a free bucket with detergent purchased. This is a mixed supply as it does not satisfy the 2nd condition, i.e., it can be sold separately. You can buy either just a bucket or just detergent. The highest rate of GST will then apply. Since detergents have the higher rate, this rate will apply on the whole mixed bundle.