How to Determine the Place Of Supply Of Services

This is a new concept introduced in GST which will cover supplies made together whether the supplies are related or not. The concept of composite supply in GST regime is similar to the concept of bundled services under Service tax laws. However, the concept of mixed supply is entirely new.

Composite supply

Composite supply means a supply is comprising two or more goods/services, which are naturally bundled and supplied in with each other in the ordinary course of business, one of which is a principal supply. The items cannot be supplied separately.

Any supply of goods or services will be treated as composite supply if it fulfils BOTH the following criteria:

*The supply consists of 2 or more goods or services together,

AND

*It is a natural bundle, i.e., goods or services are usually provided together in normal course of business. They cannot be separated.