Page 21 - Ch2_Supply

CCP 02.09.31.00
Manikaran, a registered supplier of Delhi, has supplied 20,000 packages at ₹ 30 each to Mukhija Gift

Shop in Punjab. Each package consists of 2 chocolates, 2 fruit juice bottles and a packet of toy balloons.
Determine the rate(s) of GST applicable in the given case assuming the rates of GST to be as under:-
Goods/services supplied GST Rate
Chocolates 18%
Fruit juice bottles 12%

Toy balloons 5%
[Study Mat]
Answer:-

Legal Provision:-
As per section 2(74) of CGST Act, “Mixed supply”-
Ü Consist of two or more individual supplies of goods &/or services,
Ü They can be supplied independently, still supplied together by the taxable person,

Ü Supplied for a single price &
Ü Is not naturally bundled i.e. it is not a composite supply.
Discussion & Conclusion:-
Ü Supply of a package containing chocolates, fruit juice bottles and a packet of toy balloons is a mixed supply

as each of these items can be supplied separately and is not dependent on any other (i.e. not naturally
bundled) & also a single price is charged for the package.
Ü Further, as per section 8(b), the mixed supply is treated as a supply of that particular supply which
attracts the highest rate of tax.
Ü Thus, in the given case, supply of packages is treated as supply of chocolates as it attracts the highest rate

of tax & the rate of GST applicable on the package of 6,00,000 (20,000 × 30) is 18%. ₹ ₹

CCP 02.09.32.00

Dumdum Electronics has sold the following electronic items to Akbar Retail Store.
1) Refrigerator (500 litres) taxable @ 18%
2) Stabilizer for refrigerator taxable @ 12%
3) LED television (42 inches) taxable @ 12%
4) Split air conditioner (2 Tons) taxable @ 28%

5) Stabilizer for air conditioner taxable @12%
Dumdum Electronics has issued a single invoice, indicating price of each of the above items separately
in the same. Akbar Retail Store has given a single cheque of ₹ 1,00,000/- for all the items as a composite

discounted price. State the type of supply and the tax rate applicable in this case. [Study Mat]
Answer :-
Ü In the given case, the items supplied by Dumdum Electronics are not naturally bundled in the ordinary
course of business. Therefore, such supply is not a composite supply.
Ü Further, Akbar Retail Store has paid a composite discounted price for these goods but Dumdum

Electronics has not charged a single price for the said supply. Therefore, said supply is also not a mixed
supply.
Ü Thus, there is supply of individual items which are taxable at the respective rates applicable to them.

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