Question

Our client having business of supplying tyres and tubes. GST rate on Tyres and Tubes is 28% and 18% respectively. Sometimes they supplied tyres along with fitted tubes (tubes fitted in the tyres) and charge GST @28%. Is this composite supply or mixed supply?

Answer

When the tyres & tubes are supplied after these are fitted together then same will be consider composite supply. The definition of composite supply is given in Section-2 of CGST Act, 2017 which are reproduced below
Composite supply means a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply.
There are two product supply together which can be suplied otherwise separately. Accordingly these is covered under mixed supply and the rate of 28% being the highest rate applicable to a product kept in fixed supply will apply.
(Reply dt. 31/01/2019)