Tax Invoice for supply of goods and service

[Kaustubh Karandikar]

XYZ (Manufacturer) is making and supplying “Hanging Banner Assembly” attracting 18% GST. In the same invoice he is also charging separately, installation charges, freight charges and scaffolding charges and charging same GST rate i.e. 18%. Is it the correct way of issuing the invoice or for installation charges, freight charges and scaffolding charges he need to prepare service invoice separately with corresponding SAC Code and applicable GST Rate?

[KASTURI SETHI]

In my view, HSN code for supply of services should be mentioned separately. Tax invoice is for goods and services both.

[Ganeshan Kalyani]

In my view, the supply of hanging banner assembly along with installation, freight and scaffolding is a composite supply if a single price is charged and in that case GST@18% is applicable on entire amount. However, in the present case, you are charging separate price for the goods and separate for the services. Therefore, I am also of the view that separate HSN and rate would be applicable on goods and services separately.

[KASTURI SETHI]

Well explained by Sh.Ganeshan Kalyani, Sir.

AI Summary

Composite supply: single-price goods-and-services attracts uniform GST; separate pricing requires distinct HSN/SAC and rates on invoice A tax invoice may include both goods and services; if a single price is charged for bundled goods and services it constitutes a composite supply and the principal supply's GST rate applies to the entire amount. If goods and services are separately priced, they must be treated as separate supplies: the invoice should identify goods by HSN and services by SAC and apply the corresponding GST rates to each component.