ISSUE OF GST INVOICE FOR TAXABLE GOODS AT DIFFERENT RATES

[KERAGODEGOPALARAO ANANTHARAO]

Dear sir,

We are purchasing Growbags at the rate of 18%, We are selling Cocopeat at the rate of 5%.

Cocopeat is filled in Growbags and sell to the customers. What is the rate of filled bag?

Shall we make separate entry in Invoice or shall we make one invoice.

if separate in invoice what is rate of tax? If one in invoice what is rate of tax?

AI Summary

Composite supply: rate of the principal goods applies to packed goods; packing included in transaction value under GST.
Packing material value is includible in transaction value; when packing is incidental and the supply is a composite supply dominated by the principal good, the principal good's rate applies to the entire transaction. Alternatively, separate invoicing of components may be employed but risks classification as a mixed supply. If inputs bear a higher tax rate than outputs, refund mechanisms for excess input tax credit may be available. The key factual question is whether the growbag is incidental packing or a distinct supply, which governs invoicing and rate determination.