Classify the following supplies into mixed supply and composite supply: (i) Train ticket including meals supply (ii) Supply of health care services along with consumables and medicines (iii) Supply of toothpaste with too

CS Professional · Advanced Tax Laws · PYQS · June 2023
Classify the following supplies into mixed supply and composite supply: (i) Train ticket including meals supply (ii) Supply of health care services along with consumables and medicines (iii) Supply of toothpaste with toothbrush (iv) Providing lodging facility in hotel along with breakfast and dinner (v) A laptop seller sold laptop along with laptop bag.

Answer & Explanation:

Classification of Supplies into Mixed Supply or Composite Supply: (i) Train ticket including meals supply: Composite supply. The principal supply is transportation of passengers, and meals are naturally bundled and supplied in conjunction with it. (ii) Supply of health care services along with consumables and medicines: Composite supply. Health care service is the principal supply, and consumables/medicines are naturally bundled with it. (iii) Supply of toothpaste with toothbrush: Mixed supply. These are not naturally bundled and can be supplied separately. The intention is to sell them together for a single price. (iv) Providing lodging facility in hotel along with breakfast and dinner: Composite supply. Lodging is the principal supply, and breakfast/dinner are naturally bundled and supplied in conjunction with it in the ordinary course of business. (v) A laptop seller sold laptop along with laptop bag: Composite supply. Laptop is the principal supply, and the laptop bag is naturally bundled with it.

Topics: Goods and Services Tax (GST)

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