composit supply

31 December 2017

we purchase rikshaw at 12 % and its battery separately at28% now at which rate of gst rikshaw can b sold with installed battery

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3 Replies

Anmol Singla (808 Points)
Replied 31 December 2017

in my view as rickshaw is a predominant supppy tax should be charged at12%

DIPESH PATEL (8 Points)
Replied 31 December 2017

Anmol hi is right if this is case of composite supply but if it is treated as mixed supply tax rate shall be 28%

Baljeet Singh (CA, B.Com (H)) (954 Points)
Replied 31 December 2017

This is a case of Composite supply, because One item (Rickshaw) cannot do without the Other item (Battery).

I agree that the battery can be used independently but the rickshaw cannot. This will not be a mixed supply.

Conclusion - This is case of composit supply where rikshaw is a Principal product. Motorised rickshaws fall udner HSN 8703 which are taxed at 28%.

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