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%.

GUJARAT AUTHORITY FOR ADVANCE RULING,
GOODS AND SERVICES TAX,
A/5, RAJYA KAR BHAVAN, ASHRAM ROAD,
AHMEDABAD – 380 009.

ADVANCE RULING NO. GUJ/GAAR/R/44/2020
(IN APPLICATION NO. Advance Ruling/SGST&CGST/2019/AR/39)
Date: 30.07.2020

Name and address of the applicant : M/s. Jainish Anantkumar Patel,
B/11, Pan Market, Kalupur, Ahmedabad-1.

GSTIN of the applicant :URD

Date of application :14.06.2019.

Clause(s) of Section 97(2) of CGST / GGST Act, 2017, under which the question(s) raised. :(a) Classification of any goods or services or both.
(e) Determination of the liability to pay tax on any goods or services or both.

Date of Personal Hearing :09.07.2020(through Video conferencing).

Present for the applicant:Shri Rubbal A.Bhandari.

B R I E F FA C T S

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.

2. The applicant has further submitted that as per definition under Section 2(74) of the CGST Act, 2017, ‘mixed supply’ means two or more individual supplies of goods or services, or any combination thereof, made in conjunction with each other by a taxable person for a single price where such supply does not constitute a composite supply. He has stated that as per the above definition it can be clearly seen that there should be a single price for two or more individual supplies of goods or services, or any combination thereof, made in conjunction with each other by a taxable person and in this case the applicant will charge separate price on all products; that as each of these items can be supplied separately and is not dependent on the other, they cannot be classified as composite supply; that the customer can buy all the three items together or any single item separately and therefore the applicant shall charge tax on each item separately as per the applicable tax rate on such item; that there shall not be a single highest rate of tax charged on total amount of the invoice as per the definition of mixed suply. The applicant has concluded his submission by stating that accordingly, the said supply of goods shall not be treated as ‘mixed supply’ as per the CGST Act and all the items shall be subject to the tax rate as applicable to each individual item. The applicant has put forward the following question on which advance ruling is required:

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