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<h1>Understanding GST: Composite vs. Mixed Supplies and Their Different Tax Treatments Under the Law</h1> The GST law distinguishes between composite and mixed supplies, which are combinations of goods and services with different tax treatments. A composite supply involves goods or services that are naturally bundled in the ordinary course of business, with one being the principal supply, such as a hotel stay with breakfast. The tax rate is based on the principal supply. In contrast, a mixed supply consists of goods or services provided together for a single price but not naturally bundled, like a gift basket; the highest tax rate among the items applies. Proper classification determines the applicable tax rate and timing.
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