Supply of Pencils Sharpener with Pencils is Mixed Supply

In re Doms Industries Pvt. Ltd. (GST AAR Gujarat)

Supply of sharpeners along with pencils amounts to ‘Mixed Supply’ taxable at the higher rate among all the supplies

The AAR, Gujarat in the matter of M/s. Doms Industries Pvt. Ltd. [Advance Ruling No. GUJ/GAAR/R/ 2022/52 dated December 30, 2022] has held that the supply of pencil-sharpeners along with pencils will be covered under the category of ‘Mixed Supply’ and that HSN code will be used which attracts higher rate of tax among all the taxable supplies containing in a pack/box.

Facts:

M/s Doms Industries Pvt. Ltd. (“the Applicant”) is a manufacturer and supplier of all kind of the stationary items. The Applicant has submitted that vide Notification No. 2/2022- Central Tax (Rate) dated July 13, 2022 (“the Goods Rate Notification”), the GST rate on Sharpener and Scales was increased from 12% to 18% w.e.f. July 18, 2022. Further, the Sharpener and Scales are sold by the Applicant in a kit, which is a combination of sharpener or scales and other products, which are liable to GST rate at 5% and 12%.

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