06 June 2022
Difference between composite supply and mixed supply At first glance, composite supplies and mixed supplies may look very similar to each other. In both cases, we talk about supplying goods and/or services as a bundle for a single price. But then, why have our tax authorities gone to great lengths to differentiate them? Well, let’s see why:
Difference No.1 - Principal supplies — In a composite supply, one item or service is clearly the main part of the supply. In a mixed supply, no one part is necessarily the principal supply (though the part with the highest GST rate is treated as principal).
Difference No.2 - Individually available supplies — In a composite supply, it wouldn’t make sense to sell the secondary parts separately from the principal supply (for instance, the towels provided along with a hotel room). In a mixed supply, each piece could be sold separately (for instance, a grocery bundle containing an assortment of snacks and drinks).
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