Chapter III (Sections 7-11) of the Central Goods and Services Tax (CGST) Act, 2017 deals with provisions related to Levy and Collection of Tax. Section 8 of Central Goods and Services Tax Act, 2017 (12 of 2017) provides for Tax liability on composite and mixed supplies under CGST Act 2017.
Recently, we have discussed in detail section 7 (i.e. Scope of Supply) of CGST Act 2017. Today, we learn the provisions of section 8 of the CGST Act 2017. Complete Details of CGST Section 8 – Tax liability on composite and mixed supplies. You may CLICK HERE to download list of all sections of CGST Act 2017 in PDF format.
Did you know? CGST Act 2017 have been enacted by Parliament in the Sixty-eighth Year of the Republic of India to make a provision for levy and collection of tax on intra-State supply of goods or services or both by the Central Government and for matters connected therewith or incidental thereto.
Notes on Section 8 of CGST Act 2017
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.