Supply or service

[Ravikumar Doddi]

Dear sir,

Applicant is a supplier and service provider of automobile glass fitting does their activity covered under supply or service. Glass/mirror cost ₹ 2000-00 and fitting charges ₹ 400-00 total ₹ 2400-00 kindly enlighten with the provisions and HSN/SAC.

[Spudarjunan S]

Dear Sir,

You need to classify the supply as either goods or services based on the predominant part of the entire supply i.e. identify the principle supply. once you identified the principal supply, then identify the HSN for supply of goods or services as required.

The provisions under CGST Act, which you need to take care for such analysis are given below for your reference:

• Section 2(90) - “principal supply” means the supply of goods or services which constitutes the predominant element of a composite supply and to which any other supply forming part of that composite supply is ancillary;
• Section 2(30) - “composite supply” means a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply;
• Illustration - Where goods are packed and transported with insurance, the supply of goods, packing materials, transport and insurance is a composite supply and supply of goods is a principal supply;
• Section 2(74) - “mixed supply” means two or more individual supplies of goods or services, or any combination thereof, made in conjunction with each other by a taxable person for a single price where such supply does not constitute a composite supply.
• Illustration - A supply of a package consisting of canned foods, sweets, chocolates, cakes, dry fruits, aerated drinks and fruit juices when supplied for a single price is a mixed supply. Each of these items can be supplied separately and is not dependent on any other. It shall not be a mixed supply if these items are supplied separately;

[Rajagopalan Ranganathan]

Sir ,

The work undertaken by you will fall under "other installation service not elsewhere classified" with heading 995468 attracting CGST @9%, SGST @9% or IGST @18% (vide page No. 1469 and 1352 of R. K. Jain's GST Tariff of India (GST Rates & Exemptions for Services)

[KASTURI SETHI]

It is a case of mixed supply.

[Alkesh Jani]

Sir,

In this regards, if Invoice issued indicates both the activity separately, than it is individual supply and GST is to be charges accordingly.

in either case, I will go with the views given by our experts.

Thanks

AI Summary

Principal supply analysis determines whether automobile glass fitting is treated as goods or services for GST purposes. Whether automobile glass fitting is a supply of goods or services depends on identifying the principal supply when goods and fitting are combined: if one element predominates it is a composite supply taxed according to that principal element; absent a predominant element a mixed supply may arise. Separate invoicing can render the components individual supplies. Classification should follow the statutory definitions and HSN/SAC guidance.