A CONTRACTOR GETS A ORDER FROM A OFFICE FOR ELECTRIC WIRING FIXING OF LIGHT AND FAN. IN ORDER IT IS SPECIFICALLY MENTIONED THAT WHICH MAKE AND MODEL OF ITEMS WILL BE USED BY THE CONTRACTOR. IN WORK ORDER, TOTAL CONSIDERATION IS FIXED FOR A SINGLE AMOUNT FOR SUPPLY OF BOTH GOODS AND SERVICES.
WHETHER IT IS QUALIFIED AS COMPOSITE / MIXED SUPPLY. WHETHER IT MAY BE TAXED @ 18% ASSUMING SUPPLY OF SERVICE AS PRINCIPAL SUPPLY.
Debate on whether contractor's electric wiring contract is composite or mixed supply under GST; suggested item-wise invoicing. A contractor received an order for electric wiring, including fixing lights and fans, with specific makes and models mentioned. The contract provided a single price for both goods and services. The discussion focused on whether this qualifies as a composite or mixed supply under GST. One expert deemed it a composite supply, while another suggested it could be a mixed supply due to the fixed total consideration. A recommendation was made to use item-wise invoicing to potentially reduce tax liability. It was concluded that for non-government offices, the applicable tax rate would be 18%. (AI Summary)
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