Question: There is no condition of ‘Single Price’ in Composite Supply. Are there any supplies which are composite and there is no ‘Single Price’? If there is no ‘Single Price’ – then should not we consider the transaction as two separate supplies?
Answer: Generally, all supplies with a separate price should be considered as distinct supplies. However, in case such supplies are inseparable, and it makes no economic sense to provide or receive the other supplies in absence of one supply (which is called the Principal Supply), such supplies are called Composite supply. Such supplies are naturally bundled and supplied in conjunction with each other in the ordinary course of business. A service for a separate price must normally be regarded as distinct and independent and, secondly, a supply which comprises a single service from an economic point of view should not be artificially split, so as not to distort the transaction and the functioning of the GST system. The essential features of the transaction must be ascertained in order to determine whether the taxable person is supplying the customer, being a typical consumer, with several distinct principal services or a single service.
