Composite Supply

[JAISIMHA Rao]

Dear Sir,

We have purchased Heat pump, Descaler and water tank from different suppliers with separate HSN Codes and the same has been supplied and Installed in customers place. And all these items has been billed in a single invoice. Heat Pump as 28% GST and all others had 18% GST. Now the GST Auditors contention is they are a composite supply. Request your thoughts and suggestions on this.

AI Summary

Composite supply treatment may require applying the principal supply rate to ancillary items rather than itemwise taxation.
Whether multiple goods plus incidental installation form a composite supply hinges on whether one component is the principal supply with others merely ancillary; availability of components separately, routine packaging, and effect of removal on the supply's nature are key tests. A single invoice or single price is not conclusive. Separately, ITC entitlement should follow statutory eligibility where valid tax invoices exist and credits are not blocked, despite portal reconciliation requirements; suppliers should be urged to upload invoices and the claimant bears the burden of proof.