Meaning of term Mixed supply

What is term Mixed supply


The details about Mixed supply are explained here. 

Mixed supply

Mixed 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.

Mixed supply

The following Mixed supplies shall be treated as a supply of services, namely:—

         i.            Works contract as defined in clause (119) of section 2;  and

       ii.            Supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink (other than alcoholic liquor for human consumption), where such supply or service is for cash, deferred payment or other valuable consideration.

Tax liability on Mixed and mixed supplies

The tax liability on a Mixed or a mixed supply shall be determined in the following manner, namely: —

         i.            a Mixed supply comprising two or more supplies, one of which is a principal supply, shall be treated as a supply of such principal supply;  and

       ii.            a mixed supply comprising two or more supplies shall be treated as a supply of that particular supply which attracts the highest rate of

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