“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.
Illustration: – A supply of a package consisting of canned foods, sweets, chocolates, cakes, dry fruits, aerated drinks and fruit juices when supplied for a single price is a mixed supply.
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;
When two (or more) goods, or two or more services ( need not be taxable) , or a combination of goods and services, that each have individual identity and can be suppl ied separately, are deliberately supplied conjointly for a single consolidated price, the supply would be treated as a mixed supply.
Most importantly, such a supply should not qualify as a composite supply, for it to be treated as a mixed supply, i.e., in case of a mixed supply:
The two or more supplies are not naturally bundled and supplied conjointly in the ordinary course of business;
The principal supply cannot be identified – more than one of the supplies form the “predominant element” of the supply.
Where the conjoint supply is neither a composite supply, nor supplied for a single price, the two or more supplies would be treated as individual supplies or non-composite supply, and not as a ‘mixed supply’.
Illustrations for consideration:
(a) Supply of toothpaste, brush, plastic container for the two: The three goods can be said to be naturally bundled and supplied in the ordinary course of business. While the plastic container is ancillary to the supply, both toothbrush and toothpaste could be the predominant elements of the supply. In a composite supply, there can be only one principal supply and therefore, this supply would be a mixed supply.
(b) Supply of laptop and printer: Although a printer is used for the purpose of printing, the commands for which can be given through the laptop, the two goods are not naturally bundled and supplied conjointly in the ordinary course of business. Therefore, this supply is a mixed supply.
(c) Supply of repair service for an accident vehicle for a single consolidated price.
(d) Supply of lectures in a coaching centre and monthly excursions such as trekking, etc.:
The two services are not naturally bundled in the ordinary course of business.
Therefore, this supply is a mixed supply as it is for a single price.
The tax rates applicable in case of mixed supply would be the rate of tax attributable to that one supply (goods, or services) which suffers the highest rate of tax from amongst the supplies forming part of the mixed supply. Therefore, a mechanism for separating the supplies could be examined, in case of mixed supplies where tax rates are differing.
It is important to ensure there is a single price is assigned in respect of the various supplies that are involved. And the supplies so involved are unnaturally bundled together for suc h single price. If the price were not one single amount but the visible aggregation of individual prices then, even if supplied together, each of them may be regarded as an individual non – composite supply.