Composite Supply vs Mixed Supply

[prakash kumar]

Dear Professional Colleagues,

I want to raise a practical issue with respect to GST implementation.

We are a manufacturer as well as trader of UPS (Static Converter). We supply battery along with UPS. UPS(Static Convertors) is covered under tarifff Heading 8504, which is taxable under GST at the rate of 18%. While Battery is covered under tariff heading 8506, which is taxable at the rate of 28% under GST.
Whether said supply is composite supply or mixed supply? What will be the rate of tax applicable on said supply?

If it is mixed supply, can we raise separate bill for UPS & Battery? Advice the best possible way.

Thank you for your valuable time.

AI Summary

Composite supply principle: principal-supply characterization determines GST rate, but mixed-supply treatment may apply for separable items.
Whether a UPS bundled with a battery is a composite supply or mixed supply decides GST treatment: if supplies are naturally bundled with a principal supply, Section 8 makes the bundle taxable at the principal supply's rate (UPS as principal, battery ancillary). If the items are separable with different tariff headings and tax rates, the package may be a mixed supply permitting separate taxation or invoicing. Practical considerations-functional dependence, relative value, HSN codes-and risk of input/output tax mismatch support seeking an Advance Ruling or using separate invoicing as safeguards.