GST composite supply test: separate spare parts and maintenance services under one agreement were held to be a mixed supply.

An equipment parts supply and services agreement was examined under GST to determine whether the bundled supplies were a composite supply or a mixed supply. The agreement separately identified spare parts and maintenance services, and its terms showed that the two were not naturally bundled in the ordinary course of business or integral to each other. Although a single consideration was charged for the bundle, the goods and services remained distinct and capable of separate supply, so the essential conditions for composite supply were not met. The supply was therefore correctly classified as a mixed supply.

---

---

Issues: Whether the supplies under the Equipment Parts Supply and Services Agreement constituted a composite supply or a mixed supply under the GST law.

Analysis: The Agreement separately identified supply of spare parts and provision of maintenance services. The terms and structure of the Agreement indicated that the two supplies were not naturally bundled in the ordinary course of business and were not integral to each other. The consideration was charged for the bundle of supplies for a single price, but the agreement itself showed distinct components of goods and services capable of being supplied separately. On this basis, the essential ingredients of composite supply were not satisfied.

Conclusion: The supply under Agreement-2 was correctly classified as mixed supply.

---