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gst percentage for gift hamper

25 September 2017

hello,

we are into food business and has come out with a gift hamper comprising of sweets, Namkeen and cookies. all are under different GST category... should we calculate individual gst or will there be a different GST for gifts and hampers comprising food products. different billing for them will be difficult to bill... pls advice

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6 Replies

anshul aggarwal (Consultant) (1074 Points)
Replied 25 September 2017

Different Gst as per HSN code will be applicable

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anshul aggarwal (Consultant) (1074 Points)
Replied 25 September 2017

Shift for billing on computer in case you are doing manual billing that can only help people doing business with multiple hsn codes

Abhishek Agrawal (3 Points)
Replied 25 September 2017

ok thanks.

balaraman jayagopi (21 Points)
Replied 26 September 2017

see the definition of mixed supply

SKumar (Manager) (385 Points)
Replied 26 September 2017

AA,

As Mr Balaraman has pointed out correctly, this hamper constitutes a Mixed Supply and will be taxable accordingly.

i.e.

A mixed supply comprising two or more supplies shall be treated as a supply of that particular supply which attracts the highest rate of tax

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anshul aggarwal (Consultant) (1074 Points)
Replied 26 September 2017

Yes you are correct this is a case of mixed supply where it has to be taxed at highest rate. But it will be quite injustice to customer to pay 18% tax on item that is exempted or is at 5%. Also it depends on business if they can charge and collect tax from customer at highest rate. Govt. motive is just to gather tax from both hands without seeing practical situation of the business.