Mixed supply in GST

Mixed supply

As per sec. 2(74) mixed supply means –

§ Two or more individual supplies of goods or services or any combination thereof,

§ Made in conjunction with each other

§ By a taxable person

§ For a single price

§ Where such supply does not constitute a composite supply.

Condition for mixed supply

Any supply of goods or services will be treated as mixed supply if it satisfies the following conditions simultaneously:

1. Supply of two or more individual supply

2. It is not naturally bundled i.e., goods or services are usually not provided together in normal course of business. They can be separated.

3. None of the supplies is principal supply.

Tax liability for composite supply

As per sec. 8 of CGST Act, 2017 a supplies mixed supply comprising two or more shall be treated as a supply of that particular supply which attracts the highest rate of tax.

Guiding principles for determining whether supply is a composite supply or mixed supply

Following guiding principles could be adopted to determine whether it would be a composite supply or mixed supply.

Description	Composite supply	Mixed supply
Naturally bundled Supplied together Can be supplied separately One is predominant supply for recipient Each supply priced separately	Yes Yes No Yes No	No Yes Yes No No

Criteria for determining natural bundle

§ Perception of customer about the supply.

§ Market trend i.e. how other supplier supplies.

§ Nature of ingredient of supply.