Follow Us:

In Kalani Infrastructure Pvt. Ltd., Kota (Raj) (2021) 35 J.K.Jain’s GST & VR 151, Hostel Accommodation Service with Food etc. was held to be the “Mixed Supply” by the Hon’ble Appellate Advance Rulings authority.

Whereas in the case of Symmetric Infrastructure Pvt. Ltd., Kota, (Raj) (2021) 36 J.K.Jain’s GST & VR 226, the Coaching services to students, along with supply of goods/printed material/ test papers, uniform, bags and other goods, have been treated as a “Composite Supply”, by the Advance Rulings Authority of the same State,.

Our views.─1. In my view, Coaching services to students along with supply of other material does not fulfill the criteria of Composite Supply as laid down u/s 2(30), GST Act, 2017, which reads as under;

Composite Supply & Mixed Supply - Hands and puzzle

2(30). “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;

Illustration: Where goods are packed and transported with insurance, the supply of goods, packing materials, transport and insurance is a composite supply and supply of goods is a principal supply.

As against the above the definition of “Mixed Supply” given in  S.2(74), is as  under;

(74) “mixed supply” means two or more individual supplies of goods or services, or any combination thereof, made in conjunction with each other by a taxable person for a single price where such supply does not constitute a composite supply;

Illustration: A supply of a package consisting of canned foods, sweets, chocolates, cakes, dry fruits, aerated drinks and fruit juices when supplied for a single price is a mixed supply. Each of these items can be supplied separately and is not dependent on any other. It shall not be a mixed supply if these items are supplied separately.

2. In both the above cases, modus operendi of the taxable supply is almost the same. The “Coaching services to students along with other material” can not be treated to be naturally bundled and supplied in conjunction with each other in the ordinary course of business.

3.The charging of Consolidated amount does not fit in the clear definition of “Composite Supply”.

4. Further, in the case of Network Partner, the issue of eligibility of ITC, has not been answered by the Advance Rulings Authority.

5. With due regard to Hon’ble Advance Rulings Authority, I write to state that in my view, the Advance Rulings in Symmetric Infrastructure Pvt. Ltd., Kota, (Raj), (2021) 36 J.K.Jain’s GST & VR 226, is wrong to this extent.


Author Bio

I am s/o J.K.Jain , Jaipur & is Writer & Analyst of Fortnightly magazine "J.K.Jain's GST & VR". Extended Consultation work of GST. Expert in Commentary of GST/VAT. My e-mail ID is opjain02@yahoo.co.in & Tel No. is 9414300730/9462749040. Analytical interpretation of GST Act/Rules a View Full Profile

My Published Posts

Royalty Collection Contractor – Levy of GST- Constitutional Validity of Condition in notfn 14/2018-CT(R) GST on Royalty on Minerals excavated from Mines – Constitutional Validity Delayed submission of Reconciliation Statement in GSTR-9C – Late Fee/Penalty not leviable Affiliation granted for imparting education is not exempt GST on Operation & Maintenance of Mansi Wakal dam on ESCO Model View More Published Posts

Join Taxguru’s Network for Latest updates on Income Tax, GST, Company Law, Corporate Laws and other related subjects.

Leave a Comment

Your email address will not be published. Required fields are marked *

Search Post by Date
July 2024