Mixed Supply & Composite Supply
If the second condition is not fulfilled then the supply is treated as a Mixed Supply.
Mixed supply
Mixed supply under GST means two or more individual supplies of goods or services, or any combination, made together with each other by a taxable person for a single price. Each of these items can be supplied separately and is not dependent on any other.
It shall not be a mixed supply if these items are supplied separately.
For tax under GST, a mixed supply comprising two or more supplies shall be treated as supply of that item which has the highest rate of tax.
As per the Revised GST law, a supply of a package consisting of canned foods, sweets, chocolates, cakes, dry fruits, aerated drink and fruit juices when supplied for a single price is a mixed supply. All of these can be sold separately. Assuming Different Independent Products.
For tax under GST, a mixed supply comprising two or more supplies shall be treated as supply of that item which has the highest rate of tax.
As per the Revised GST law, a supply of a package consisting of canned foods, sweets, chocolates, cakes, dry fruits, aerated drink and fruit juices when supplied for a single price is a mixed supply. All of these can be sold separately. Assuming aerated drinks have the highest GST rate, aerated drinks will be treated as principal supply. Let us consider another set of examples:
1. Booking Train Tickets: You are booking a Rajdhani train ticket which also includes the meals on the train. This is treated as a bundle of supplies. It is a composite supply where the products cannot be sold separately. You will not buy the meal and the train ticket separately.
The transportation of passenger is, therefore, the principal supply. The rate of tax applicable to the principal supply will be charged to the whole composite bundle. Therefore, the rate of GST applicable to the transportation of passengers by rail will be charged by IRCTC on the booking of Rajdhani ticket.
2. Discount Offers in Shops: Many shops offer freebies during festivals; say a body soap on the purchase of a shampoo. This is considered a mixed supply as it does not satisfy the second condition, i.e., all of these items can be sold separately. You can buy either just a soap or just a shampoo. The highest rate of GST will apply on this transaction. Assuming that shampoos have the higher rate, this rate will apply on the whole mixed bundle.
