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of <h1>Understanding Composite vs. Mixed Supply: Key Differences in Bundling and Principal Supply Explained</h1> Composite supply involves two or more taxable supplies of goods or services that are naturally bundled and supplied together in the ordinary course of business, where one is the principal supply. An example is purchasing a TV with warranty and maintenance services, where the TV is the principal supply. Mixed supply refers to multiple individual supplies of goods or services offered together for a single price, which can typically be sold separately, such as selling water bottles with a refrigerator. The key difference lies in the natural bundling and principal supply aspect of composite supply versus the separability in mixed supply.
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