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At
first glance, composite supplies and mixed supplies may look very
similar to each other. In both cases, we talk about supplying goods and/or
services as a bundle for a single price. But then, why have our tax
authorities gone to great lengths to differentiate them? Well, let’s see
why:
Difference No.1 - Principal supplies — In a composite supply, one item
or service is clearly the main part of the supply. In a mixed supply, no
one part is necessarily the principal supply (though the part with the
highest GST rate is treated as principal).
Difference No.2 - Individually available supplies — In a composite
supply, it wouldn’t make sense to sell the secondary parts separately
from the principal supply (for instance, the towels provided along with a
hotel room). In a mixed supply, each piece could be sold separately (for
instance, a grocery bundle containing an assortment of snacks and
drinks).
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