CHAPTER III LEVY AND COLLECTION OF TAX

Section 8: Tax liability on composite and mixed supplies

The Central Goods and Services Tax Act, 2017

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.

Leading cases

Union of India v. Mohit Minerals Pvt. Ltd. (2022)GST Council recommendations are persuasive and do not bind Parliament and State legislatures; IGST on ocean freight levied on importers under CIF contracts violates the composite supply principle in Section 8 of the CGST Act; appeals dismissed.

Questions on this section

2 questions in 2 of our papers cite Section 8.

Practise questions on Taxation Law