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This is a new concept introduced in GST which will cover supplies made together whether the supplies are related or not. The concept of composite supply in GST regime is similar to the concept of bundled services under Service Tax Laws. However, the concept of mixed supply is entirely new.

Composite supply

Composite supply means a supply is comprising two or more goods/services, which are naturally bundled and supplied in with each other in the ordinary course of business, one of which is a principal supply. The items cannot be supplied separately.

Conditions for composite supply-

Any supply of goods or services will be treated as composite supply if it fulfils BOTH the following criteria:

  1. Supply of 2 or more goods or services together, AND
  2. It is a natural bundle, i.e., goods or services are usually provided together in normal course of business. They cannot be separated.

Illustration in Revised GST law: Where goods are packed, and transported with insurance, the supply of goods, packing materials, transport and insurance is a composite supply. Insurance, transport cannot be done separately if there are no goods to supply. Thus, the supply of goods is the principal supply.

Tax liability will be the tax on the principal supply i.e., GST rate on the goods.

If the second condition is not fulfilled it becomes a mixed supply.

Mixed supply

Mixed supply under GST means two or more individual supplies of goods or services, or any combination, made together with each other by a taxable person for a single price. Each of these items can be supplied separately and is not dependent on any other.

It shall not be a mixed supply if these items are supplied separately.

For tax under GST, a mixed supply comprising two or more supplies shall be treated as supply of that item which has the highest rate of tax.

Illustration in Revised GST law: A supply of a package consisting of canned foods, sweets, chocolates, cakes, dry fruits, aerated drink and fruit juices when supplied for a single price is a mixed supply. All can be sold separately. Assuming aerated drinks have the highest GST rate, aerated drinks will be treated as principal supply.

Let us consider another set of examples:

Booking train tickets: You are booking a Rajdhani train ticket which includes meal. It is a bundle of supplies. It is a composite supply where the products cannot be sold separately. You will not buy just the train meal and not the train ticket. The transportation of passenger is, therefore, the principal supply.

composite supply, mixed supply
Train ticket including meal

Rate of tax applicable to the principal supply will be charged to the whole composite bundle. Therefore, rate of GST applicable to transportation of passengers by rail will be charged by IRCTC on the booking of Rajdhani ticket.


composite supply, mixed supply
Buy detergent
composite supply, mixed supply
Get bucket free





Many shops offer a free bucket with detergent purchased. This is a mixed supply as it does not satisfy the 2nd condition, i.e., it can be sold separately. You can buy either just a bucket or just detergent. The highest rate of GST will then apply. Assuming that plastic buckets have the higher rate, this rate will apply on the whole mixed bundle.

GST is a completely new tax regime already taking India by storm. Feel free to read more of our articles in our blog.

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