Published on 06-07-2022
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A composite supply is two or more goods or services that are only sold as a set and cannot be sold individually.

Every composite supply has a principal supply, which is the main product or service that the buyer primarily wants. The rest of the supply is made up of supporting elements that add value to the principal supply.

A composite supply is taxed at the GST rate of the principal supply.

Example 1: A gift-wrapped box of chocolates. Here, the chocolates are the principal supply, while the box, gift wrapper, message card and gift wrapping service offered by the salesperson are supporting elements that cannot be supplied individually without the chocolates. This is a composite supply, and its GST rate will be same as the rate for the chocolates.

Example 2: A dealer sells a brand-new vehicle along with registration, insurance, a tool kit and first aid kit, and 4 free maintenance services. This is a composite supply, because vehicle insurance, registration and free maintenance services cannot be supplied without the vehicle (which is the principal supply).

Note: Whenever a shopkeeper ships the contents of a composite supply, the tax rate associated with the shipping charge will be equivalent to the tax rate of the principal supply (in case of example 1, the GST on shipping will be equal to the GST on the box of chocolates).

write about mixed and composite supply under gst
mixed supply and composite supply under gst in tamil