Supply of Supari, Lime & chewing Tobacco in a single transaction pouch will be considered as composite supply with chewing tobacco being principal supply taxed@18%.

Last updated: 20 January 2021

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The Gujarat Authority for Advance Ruling has determined that supplying supari, lime, and chewing tobacco together in a single pouch constitutes a composite supply. Chewing tobacco has been identified as the principal supply in this combination. Consequently, the entire pouch will be taxed at the GST rate applicable to chewing tobacco, which is 18%. This ruling clarifies the tax treatment for such bundled products.

Court :
Gujrat AAR

Brief :
The applicant M/s. Jainish Anantkumar Patel, who is an unregistered person in GST has submitted that he wants to carry on the trading activity of Grated Supari, Lime and Tobacco by putting them together in a transparent plastic pouch for the sake of easy carry by the customer. The applicant further states that all the items will be supplied in a single pouch, will have separate price and will be shown in the invoice as a separate bill of item and at no stage will a single price be charged from the customers. He has also stated that the plastic pouch will be used to merely facilitate the customer for easy carry of the products and that each of these items can be supplied separately and is not dependent on each other, so, they cannot be classified as composite supply.

Citation :
ADVANCE RULING NO. GUJ/GAAR/R/44/2020

Daily Limit Reached