Circular regarding Mixed and Composite Supply

- Sales Tax - Soham Mashruwala

The GST law is to be framed and then the government will issue circulars and clarify it from time to time. The dispute over the rate of tax is huge when more than one good or service or both are supplied at the same time. Composite supply and mixed supply have been defined under GST law.

Pursuant to this, the type of supply will be considered according to the condition of a supply transaction and the rate of tax on the supply will be charged accordingly. A circular has been issued by the government in this regard. No. 2013/13/2023- GST dated 1.8.2023 which is discussed in today's article.

Article 2(30)

Composite supply is defined in section 2(30) according to which a composite supply is a supply made by a taxable person to a recipient which consists of goods or services or both or any combination of goods and services and is naturally bundled and generally a The supply shall be deemed to be in conjunction with the other and the rate at which the goods will be charged shall be on the amount of all bills.

Article 2(74)

A mixed supply means a substitute of two or more goods or services or both and all supplies are one and is not a composite supply.

Accuracy of the circular

Through the circular, the government has clarified about the food and drinks provided in the cinema hall that whether the food purchased by the customer who comes to the cinema hall is subject to GST rate or whether it is considered as restaurant service, para 3.1 describes what is called restaurant service. has done and according to the government has established a very wide spread of eating joints. In order to identify such transaction as restaurant service in the circular, it has been clarified that taking all these food and beverage services is optional and not dependent on cinema exhibition service.

In the same case, restaurant service will be considered. In case cinema tickets and food are sold together, the rate charged on cinema tickets will be calculated on this transaction.