Composite supply or mixed supply

[Umakant Malpani]

I am an e-Rickshaw dealer. E Rickshaw are charged at 12% in Gst while the battery required is charged at 28%. I buy both these items from different Suppliers. Can it be case of composite supply where e rickshaw being the primary item and I charge 12% tax on aggregate?

[KASTURI SETHI]

It is a mixed supply. When you sell battery separately , pay GST @28%

[Kishan Barai]

If you can't get Complete ITC then it would be added to your Cost that you need to charge from Customer, excess GST paid could be used to import goods from foreign country and pay IGST (Part of Import Duty) from it

[KASTURI SETHI]

Yes. Perfect advice by Sh.Kishan Barai, an expert.

AI Summary

Mixed supply: higher rated component governs GST treatment, batteries taxed at higher rate when sold separately. The transaction is a mixed supply: where the battery constitutes a distinct, separately taxed component attracting a higher GST rate when sold separately, that higher rate applies to the battery component and the whole supply cannot be taxed at the lower vehicle rate. If input tax credit on batteries is not available, the unrecoverable tax increases the dealer's cost and should be passed to the customer; excess tax credit may be applied against other GST liabilities such as IGST on imports.