Mixed Supply and Composite Supply under GST
Mixed Supply and Composite Supply under GST Let us understand first the term “supply” simply means all forms of supply of goods/ services. It is carried out during the course of business. There are two types of supplies under GST, Composite and Mixed. Both of these supplies help to determine the correct GST rate and provides uniform tax treatment under GST for such supplies. Bundled Supply A bundled supply means supply of goods and/or services in a combination. This concept was mainly found in service tax where a bundled service meant a combination of two or more services. Here are some ways to identify whether it is a naturally bundled(Composite) or mixed one them: 1. If buyers mostly expect such services to be provided as a package, then the package will be treated as naturally bundled. For example, most business conventions look for combination of hotel accommodation, auditorium and food. 2. If most of the service providers in the indu...