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HC clears confusion over contentious issue of composite supply under GST

 HC clears confusion over contentious issue of composite supply under GST

The Kerala high court has tried to clear the air over the contentious issue of composite supplies under the Goods and Services Tax (GST) which experts say may become guiding principles to decide cases in litigation. If more than one good or service are supplied by a company, these could be considered composite or mixed under the GST system. If these are considered composite, then the GST rate on principal supply applies to the entire supplies, otherwise different rates as applicable to each transaction would be applicable. Explaining the present case, Niraj Bagri, partner at Dhruva Advisors said, Abbott Health Care gives medical equipment to hospitals and labs to be used without consideration. For this Abbott has signd an agreement with these hospitals and labs. These hospitals and labs, in turn, are bound to procure specified quantity of medical products such as reagents, calibrators, disposals etc through distributors of Abbott for consideration till the tenure of agreement.

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