Section 8 of GST – Tax liability on composite and mixed supplies. Full Details of GST Section 8 – Tax liability on composite and mixed supplies. After Providing List of all sections of GST here we provide Detailed Explanation of Goods and Service Tax all Sections.
Must Read – List of all sections of GST
Section 8 of GST – Tax liability on composite and mixed supplies
The tax liability on a composite or a mixed supply shall be determined in the following manner, namely;
- (a) a composite supply comprising two or more supplies, one of which is a principal supply, shall be treated as a supply of such principal supply; and
- (b) a mixed supply comprising two or more supplies shall be treated as a supply of that particular supply which attracts the highest rate of tax.
Relevant circulars, notifications, clarifications issued by Government
- Circular No. 34/8/2018 dated 01.03.2018 clarifying on the taxability of certain services;
- Circular No. 13/13/2017 dated 27.10.2017 regarding unstitched salwar suits;
- Circular No. 11/11/2017 dated 20.10.2017 regarding taxability of printing contracts;
- Chapter four of the compilation of the GST Flyers as issued by the CBIT can be referred to for a gist of the statutory provisions, titled ‘Composite Supply and Mixed Supply’.
Related provisions of the Statute
|Section or Rule||Description|
|Section 2(30)||Definition of Composite Supply|
|Section 2(90)||Definition of Principal Supply|
|Section 2(74)||Definition of Mixed Supply|
|Schedule II||Activities to be treated as a supply of goods or a supply of services|
Every supply should involve either goods, or services, or a combination of goods or a combination of services, or a combination of both. The law provides that such supplies would be classifiable for the purpose of tax treatment, either as wholly goods or wholly services, in the case of all such combinations. Schedule II of the Act provides for this classification in some of the listed instances thereunder.
Must Read –