Tag: Composite Supply

ArticleGST Article

Madras HC quashes Section 74 SCN for 28% GST chargeable on on Tubes, Tyres and Flaps treated as ‘composite

byCA Bimal Jain

The Hon’ble Madras High Court in the case of MRF Ltd. v. Additional Director DGGI & Anr. held that where the Petitioner voluntarily disclosed short payment on Tyres Tubes and Flaps (TTF) supply treating it as composite supply at 28% rate vide communication dated January 7, 2019 and paid entire tax with interest on February 21, 2019 before DGGI investigation, no fraud, wilful misstatement or suppression exists..

GST ArticleHigh Court

Packing material supplied for selling live honey bee is a part of composite supply

byCA Bimal Jain

The Hon’ble Madras High Court in the case of Tvl. Vibis Natural Bee Farms disposed of the writ petition where the Assessee was engaged in sale of live honey bees and sale of packing material for selling live honey bees was to be treated as part of composite supply with exempted product. Thus, the order passed against the Assessee treating value of packing material as a value of supply demanding tax was to be set aside and matter was to be remanded to pass fresh orders.

AARGST Article

Wheat crushing services provided to State Government eligible for exemption if ‘value of goods’ < 25% of value of supply

byCA Bimal Jain

The AAR, West Bengal, in Aryan Flour Mills Private Limited held that, crushing of wheat and addition of nutrients in atta is a composite supply and the principal supply is crushing service. The service are provided to state government under Public distribution and since the value of goods involved in such composite supply does not exceed 25% of the value of supply the Applicant is eligible for exemption