Explain in the context of CGST Act, 2017 the following: The liability on composite and mixed supplies

CS Professional · Advanced Tax Laws and Practice · PYQS · December 2017
Explain in the context of CGST Act, 2017 the following: The liability on composite and mixed supplies

Answer & Explanation:

The tax liability on a composite or a mixed supply shall be determined in the following manner; 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. Hence, in case of composite supply, tax rate as applicable to principal supply would apply to entire supply; and 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. Hence, in case of mixed supply, highest tax rate as applicable to any single supply would apply to all supplies forming part of mixed supply.

Topics: CGST Act, 2017

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