Free Scraping Tool with Apsara Oil Pastels Constitutes Separate Supply, Taxable at 18% GST: AAR Gujarat

In re Hindustan Pencils Private Limited. (GST AAR Gujarat) Hindustan Pencils Private Limited, a manufacturer of stationery products, sought a ruling on the GST implications of including a “Scraping Tool” in their “Apsara Oil Pastels” pack. The company argued that the tool, classified under a different HSN and tax rate than the oil pastels, should not be considered a separate supply as it was provided free of cost. Alternatively, they contended that it should be treated as a composite supply with the oil pastels, taxed at the oil pastels’ rate. The AAR examined whe...