Composite Supply
COMPOSITE SUPPLY COMPOSITE SUPPLY Composite supply means • consisting of two or more taxable supplies • naturally bundled • in conjunction with each other • in the ordinary course of business, • one of which is a principal supply. For e.g. Machinery (supply of goods) provided along with warranty and maintenance contract. Principal supply – as per Section 2(90) of CGST Act means supply of goods or services which constitutes the predominant element of a composite supply “Whether services are bundled in the ordinary course of business • Perception of the consumer or the service receiver • Majority of service providers in the in a particular area of business provide similar bundle of services • The nature of various services • Advertised as a single package • Single Price • different elements aren’t available separately • different elements are integral to one overall supply No straight jacket formula can be laid down to determine whether a service is naturall