Invoice Format and Composite Supply

[Sangeetha D]

'In a school invoice, where tuition fees, notebooks, and uniforms are supplied together as a composite supply with education being the principal supply, can notebooks and uniforms be considered at a 0% tax rate (since education services are exempt)? And if notebooks and uniforms are sold separately (not bundled with tuition fees), will they be taxable?'

Is this format enough?

ABC Public School

Address: __________

GSTIN (if applicable): __________

Invoice No.: 001

Date: 11-Sep-2025

Student Name: Rahul Sharma

Class: VI

S. No.	Particulars	Qty	Rate (₹)	Amount (₹)	GST Rate	GST Amount
1	Tuition Fee (April – June 2025)	1	15,000	15,000	Exempt	0.00
2	Notebooks & Stationery (bundle)	1	1,200	1,200	Exempt*	0.00
3	School Uniform (bundle)	1	2,000	2,000	Exempt*	0.00

Total Invoice Value: ₹18,200

                             Tax  :  0

Sample format

[Sadanand Bulbule]

1. When tuition fees + notebooks + uniforms are supplied together, it is Composite supply is defined in Section 2(30) of the CGST Act.

In your case:

Principal supply = Education service (which is exempt under Entry 66 of Notification No. 12/2017-Central Tax (Rate)). Notebooks and uniforms are ancillary to the education service when supplied together in one bundle (invoice). As per Section 8 of CGST Act, the tax rate of the principal supply applies to the whole composite supply. Since education is exempt, the entire bundle (tuition + notebooks + uniforms) becomes exempt. That means notebooks and uniforms also get exemption when supplied inextricably bundled with tuition fees.

2. When notebooks or uniforms are sold separately (not with tuition fees), these are treated as independent supplies of goods. Notebooks = taxable at the GST rate applicable to paper/stationery (generally 12%). Uniforms = taxable at the applicable GST rate on garments (usually 5% or 12% depending on value). They will not be exempt simply because the school is an educational institution. Exemption under Notification No. 12/2017 applies only to “education services” and not to sale of goods.

However examine/ascertain the revised rate of tax on note books and uniforms in GST-02 effective from 22/09/2025.

[Shilpi Jain]

If its one package that you are providing and students have no option but to buy the entire package (of fees, notebooks, uniform) as it is then it can be regarded as a composite supply. Factual aspects very important to conclude on this.

AI Summary

Composite supply: bundled tuition with goods takes the principal education exemption, separate sales remain taxable. When tuition is the principal supply and notebooks and uniforms are supplied inextricably as ancillary goods, the transaction is a composite supply and the whole bundle assumes the tax character of the exempt education service. If notebooks or uniforms are sold separately, they are independent taxable supplies subject to the GST rates applicable to those goods. Factual packaging and the purchaser's practical option to buy separately determine composite-supply treatment; invoice presentation should reflect bundling versus separate supply and current tariff rates should be confirmed.