TaxTMI 
TaxTMI 
2021 (1) TMI 493
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....has further submitted that as per definition under Section 2(74) of the CGST Act, 2017, '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. He has stated that as per the above definition it can be clearly seen that there should be a single price for two or more individual supplies of goods or services, or any combination thereof, made in conjunction with each other by a taxable person and in this case the applicant will charge separate price on all products; that as each of these items can be supplied separately and is not dependent on the other, they cannot be classified as composite supply; that the customer can buy all the three items together or any single item separately and therefore the applicant shall charge tax on each item separately as per the applicable tax rate on such item; that there shall not be a single highest rate of tax charged on total amount of the invoice as per the definition of mixed suply. The applicant has concluded his submission by stating that accordingly, the said supply....
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.... common parlance, especially in Gujarat as 'chuno'. Also the tobacco referred to by the applicant is not the tobacco, which is used in cigarettes or biris but chewed or held in the mouth, typically between the cheek and gums and is, therefore, called the Chewing Tobacco. But, before dwelling on the issue of whether the above is a mixed supply in GST or otherwise, we feel it necessary to find out under which sub-headings each of the above 3 items fall and what is the GST liability on each of them. 6. In order to determine the classification of the above 3 items, we will be first required to refer to the Notification No.01/2017-Central Tax (Rate) dated 28.06.2017 containing the headings, sub-headings as well as the rates of Central Tax GST applicable to various goods which are covered under 6 schedules as under: (i) 2.5 per cent. in respect of goods specified in Schedule I, (ii) 6 per cent. in respect of goods specified in Schedule II, (iii) 9 per cent. in respect of goods specified in Schedule III, (iv) 14 per cent. in respect of goods specified in Schedule IV, (v) 1.5 per cent. in respect of goods specified in Schedule V, and ....
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....nd out the tariff heading of Chewing Tobacco, we need to refer to Chapter- 24 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) which pertains to 'Tobacco and manufactured tobacco substitutes'. The said item appears at Heading 2403. Heading 2403 reads, as under: 2403 OTHER MANUFACTURED TOBACCO AND MANUFACTURED TOBACCO SUBSTITUTES; "HOMOGENISED" OR "RECONSTITUTED" TOBACCO; TOBACCO EXTRACTS AND ESSENCES - Smoking tobacco, whether or not containing tobacco substitutes in any proportion : 2403 11 -- Water pipe tobacco specified in Sub-heading Note to this Chapter: 2403 11 10 --- Hookah or gudaku tobacco 2403 11 90 --- Other 2403 19 -- Other: 2403 19 10 --- Smoking mixtures for pipes and cigarettes --- Biris: 2403 19 21 ---- Other than paper rolled biris, manufactured without the aid of machine 2403 19 29 ---- Other 2403 19 90 --- Other - Other : 2403 91 00 -- "Homogenised" or "reconstituted" tobacco 2403 99 -- Other : 2403 99 10 --- Chewing tobacco 2403 99 20 --- Preparations containing chewing tobacco 2403 99 30 --- J....
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....17, the said item appears at Sr. No.131 of Schedule-I of the said notification [on which GST liability is 5% (2.5% CGST + 2.5% SGST)] and reads as under: Sr.No. Chapter/Heading/Sub-heading/Tariff item Description of goods 131. 2522 Quicklime, slaked lime and hydraulic lime, other than calcium oxide and hydroxide of heading 2825. 10. Next, we need to find whether the combination of the 3 items discussed above i.e. Grated supari, slaked lime and chewing tobacco shall be considered as a 'mixed supply' (as asked by the applicant). For this purpose, we feel it necessary to go through the definitions of both 'composite supply' and 'mixed supply' as defined under Section 2 of the CGST Act, 2017 in order to find out whether the above would be covered under the definitions of 'composite supply' or 'mixed supply'. 10.1 Composite supply, is defined as per Section 2(30) of the CGST Act, 2017 and reads, as under: "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....
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....to produce a sense of euphoria in the body which is akin to that of smoking. It is also believed to produce a sense of well being, warm sensations in the body, sweating, salivation, palpitation and heightened alertness, tolerance to hunger and increased capacity and stamina to work. In this context, we would like to refer to an item known in common parlance as 'gutkha', which is a combination of the above 3 products. The said item is defined as under: "Gutka, ghutka guṭkha or betel quid is a chewing tobacco preparation made of crushed areca nut (also called betel nut), tobacco, catechu, paraffin wax, slaked lime and sweet or savory flavourings, in India, Pakistan, other Asian countries, and North America". 10.3 It can be seen from the above that Gutkha, which in itself is a combination of grated supari, slaked lime, chewing tobacco and some other flavouring ingredients is similar in nature to the combination mentioned hereinabove. Gutkha is an item which is easily available in the open market, is widely popular across the country and consumed by crores of people across the length and breadth of India. Thus, it can be said that the combination formed by mixing requ....
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....pply of goods, wherein chewing tobacco is the principal supply, it can be safely concluded that the aforementioned combination is not a 'mixed supply' of goods. 11. Now, since it has been established that the above supply of combination of 3 items made by the applicant is a 'composite supply' of goods with chewing tobacco being the principal supply, we are required to examine the classification and tax liability on the same. For this purpose, we will be required to refer to Section 8 of the CGST Act, 2017, which reads as under: "The tax liability on a composite or a mixed supply shall be determined in the following manner, namely:- (a) a composite supply comprising two or more supplies, one of which is a principal supply, shall be treated as a supply of such principal supply; and (b) a mixed supply comprising two or more supplies shall be treated as a supply of that particular supply which attracts the highest rate of tax." 11.1 So, in view of Section 8(a) above, it can be seen that a composite supply comprising of two or more supplies, one of which is a principal supply, shall be treated as a supply of such principal supply. Therefore, in the insta....