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of <h1>GST Act: UPS and Battery Supply Classified as Mixed Supply</h1> <h3>In Re : Switching Avo Electro Power Ltd.</h3> In Re : Switching Avo Electro Power Ltd. - 2018 (13) G.S.T.L. 84 (A. A. R. - GST), [2018] 2 GSTL (AAR) 64 (AAR) Issues: Classification of supply of UPS along with battery as Composite Supply or Mixed Supply under the GST Act.Analysis:1. The Applicant sought a ruling on the classification of the supply of UPS along with the battery, specifically whether it can be treated as a Composite Supply under Section 2(30) of the GST Act. The Advance Ruling Authority admitted the application as the issue was not pending or decided elsewhere.2. The classification of goods involved (UPS and battery) was determined based on the Rate Notifications on Goods. The Rules for Interpretation of the Customs Tariff Act were to be followed for interpretation of the Notifications.3. Note 3 to Section XVI of the Tariff Act defines a composite machine and its classification. However, its applicability is subject to the definitions of composite supply and taxability under Section 8(a) of the GST Act.4. Batteries and UPS were classified under specific Tariff Heads based on their functions and characteristics. UPS provides emergency power during mains power failure, while batteries store and release energy. The UPS requires the battery to function effectively.5. When a UPS is supplied with a built-in battery inseparable from it, it qualifies as a composite supply under Note 3. However, if UPS and battery are separately supplied but charged as a single contract, they constitute a Mixed Supply as per Section 2(74) of the GST Act.6. The ruling determined that the supply of UPS and Battery should be considered a Mixed Supply as they are supplied under a single contract at a combined single price. This classification is valid unless declared void under the provisions of the GST Act.Conclusion:The judgment clarified the classification of the supply of UPS along with the battery, distinguishing between Composite Supply and Mixed Supply under the GST Act based on the nature of the contract and pricing.
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