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19. Sec.8- Composit and mixed supply a principal supply [Section 2(30) of the CGST Act]. In view of the same,
CCP 02.19.52.00 (a) since, supply of breakfast and dinner with the accommodation in the hotel
CH 2 Define the following terms as in accordance with GST Act:- are naturally bundled, said supplies qualify as 'composite supply'.
i) Composite supply (b) since supply of toothbrush alongwith the toothpaste are not naturally
Charge of Tax & Concept of Supply
bundled, said supplies do not qualify as 'composite supply'
ii) Mixed supply
Answer: As per section 2(30) of CGST Act , “composite supply” means a supply
made by a taxable person to a recipient consisting of two or more taxable supplies of CCP 02.19.54.00
goods or services or both, or any combination thereof, which are naturally bundled Agrawal Carriers is a Goods Transport Agency (GTA) engaged in transportation

and supplied in conjunction with each other in the ordinary course of business, one of of goods by road. As per the general business practice, Agrawal Carriers also
which is a principal supply; provides intermediary and ancillary services like loading/unloading,
Illustration. — Where goods are packed and transported with insurance, the supply packing/unpacking, transhipment and temporary warehousing, in relation to
of goods, packing materials, transport and insurance is a composite supply and supply transportation of goods by road.
of goods is a principal supply; With reference to the provisions of GST law, analyse whether such services are
As per section 2 (74) “mixed supply” means two or more individual supplies to be treated as part of the GTA service, being a composite supply, or as

of goods or services, or any combination thereof, made in conjunction with each other separate supplies. (Mock test paper – Mar 18)
by a taxable person for a single price where such supply does not constitute a Answer: Legal provision:- As per sec 2(30) of CGST Act, Composite supply means
composite supply. a supply made by a taxable person to a recipient consisting of two or more taxable
Illustration — A supply of a package consisting of canned foods, sweets, chocolates, supplies of goods or services or both, or any combination thereof, which are naturally
cakes, dry fruits, aerated drinks and fruit juices when supplied for a single price is a bundled and supplied in conjunction with each other in the ordinary course of

mixed supply. Each of these items can be supplied separately and is not dependent on business, one of which is a principal supply [Section 2(30) of the CGST Act].
each other. It shall not be a mixed supply if these items are supplied separately. The GTA provides various intermediary and ancillary services, such as,
loading/unloading, packing/unpacking, transhipment and temporary warehousing,
CCP 02.19.53.00 which are provided in the course of transport of goods by road.
Determine whether the following supplies amount to composite supplies:
These services are not provided as independent services but as ancillary to
(a) A hotel provides 4 days-3 nights package wherein the facility of breakfast
the principal service, namely, transportation of goods by road. The invoice issued by
and dinner is provided along with the room accommodation.
the GTA for providing the said service includes the value of intermediary and ancillary
(b) A toothpaste company has offered the scheme of free toothbrush along services.
with the toothpaste. [ICAI Material]
In view of this, if any intermediary and ancillary service is provided in relation
Answer: Under composite supply, two or more taxable supplies of goods or services or
to transportation of goods by road, and charges, if any, for such services are included
both, or any combination thereof, are naturally bundled and supplied
in the invoice issued by the GTA, such service would form part of the GTA service,
inconjunction with each other, in the ordinary course of business, one of which is
being a composite supply, and would not be treated as a separate supply.
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