Hsn code clarification

Is it a natural practice to supply LCD with computer server(or vice versa) or it occurs once in a while?

may be twice or thrice in a year.

It is mixed supply, since these are not naturally bundled in industry. Therefore HSN Code will be 8528 and rate of tax will be 28%.

Dear Sir,

How we can mention HSN code as 8528 because it is for monitors only but we are supplying complete system (data processing maching with server and LED monitor) whose HSN code is 8471.

Please clarify.

Please refer Section 8 of CGST Act, where it is clarified that in case of mixed supply comprising two or more supplies shall be treated as a supply which attracts the highest rate of tax. In your case it is 28% and HSN 8528.

You can mention both the product details in the desciption but HSN is 8528 for the purpose of GST.

Section 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.

Illustration.— A supply of a package consisting of canned foods, sweets, chocolates, cakes, dry fruits, aerated drinks and fruit juices when supplied for a single price is a mixed supply. 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;

Section 8. The tax liability on a composite or a mixed supply shall be determined in the following manner, namely:— (a) a composite supply comprising two or more supplies, one of which is a principal supply, shall be treated as a supply of such principal supply; and (b) 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.

I would suggest to supply them separately to avoid high tax rate on Computer server.

But received PO for single item (Complete workstation)

If both the items can be sold separately and it is not a normal practice in industry(as you said only twice or thrice in a year) then it is a mixed supply.

If it is a normal practice to sell both of them together then it is a composite supply.

Now since you are more close to this type of industry, only you can say whether it is a normal practice or not to supply these 2 products together. Then you apply section 8 accordingly.

Refer example above for more clarity.

Dear Sir,

We have electronic goods trading company.. We receive PO for all electronic items in single value as package price. Here all items are having 18%gst. My question is what would be hsn code and what item descripttion should be mentioned in invoice if we have to invoice in single value price