Introduction:
The GST Act came in force from 1st July, 2017. There were many interpretation issues with respect to the definitions, glossary and terms use in the law. Since, such definitions were adopted from various legacy laws in India prior to GST; such as Service Tax, State VAT, Central Excise Act, Luxury Tax, Entertainment Tax, etc. it was difficult to make applicable one definition for different sectors. Hence, some modifications from existing definitions were made. Therefore, it was important to established a nexus of the terms used in the GST definitions. The definition discussed here is”Composite Supply”.
So what do you mean by”Composite Supply”?
Section 2(30) of CGST Act, 2017 –“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 ordinary course of business, one of which is a principal supply;
Illustration.— Where goods are packed and transported with insurance,the supply of goods, packing materials, transport and insurance is a composite supply and supply of goods is a principal supply;
Conclusion:
Therefore it is understood that As per Gst Act if “Composite Supply” is made the principal Goods/Service rate applicable to both Principal as well as other Goods and Services.”Composite Supply” means Supply of which naturally bund .eg Mobile with Charger.