What are the key benefits of SBI Credit Cards?

SBI Credit Cards offer a wide range of benefits, including rewards, cashback, lounge access, discounts, and insurance coverage.

How can I apply for an SBI Credit Card?

You can apply for an SBI Credit Card online through the Paisabazaar platform, where you can compare card options and check for pre-approved offers.

What factors should I consider when choosing an SBI Credit Card?

Consider your spending habits, lifestyle, and financial goals to select a card that best suits your needs, such as travel, shopping, or rewards.

How can I manage my SBI Credit Card efficiently?

SBI Card offers a user-friendly mobile app and online banking services to help you manage your card, check statements, make payments, and access additional features.

What precautions should I take to avoid accumulating credit card debt?

Responsible credit card usage includes paying bills on time, managing credit limits wisely, and avoiding unnecessary spending to prevent debt accumulation.

Mixed Supply & Composite Supply under GST

Introduction:

In the world of GST, there are two intriguing concepts that have recently emerged - mixed supply and composite supply. These concepts tackle the issue of supplies that are made together, whether they are related or not. To fully understand their significance, it is important to delve into their definitions and implications.

Supply, in the context of GST, refers to the provision of goods or services in exchange for a consideration, during the course of business. This includes a wide range of activities such as sale, transfer, barter, exchange, license, rental, lease, disposal, and even the import of services for consideration. Additionally, certain activities specified in Schedule I of the GST Act are also considered as supply.

So why do we need to differentiate between mixed supply and composite supply? Well, the GST Council has defined specific rates for different goods and services. These rates play a crucial role in determining the applicable tax on supplies. However, there are cases where goods and services are supplied together, even though they may not be inherently connected. For example, the supply of an air conditioner along with installation services. In such cases, the GST Act provides guidance on how to correctly rate such supplies. This is where the concepts of mixed supply and composite supply come into play. They help determine the appropriate GST rate and ensure uniform tax treatment for such supplies.

Let's first explore the notion of bundled supply. In simple terms, bundled supply refers to a combination of goods and/or services. This concept was prevalent in the service tax regime, where it denoted a combination of two or more services. In order to determine if a supply is naturally bundled, we need to consider certain factors. If buyers usually expect certain services to be provided as a package, then it can be considered naturally bundled. Similarly, if most service providers in industry offer a package of services, that also indicates a naturally bundled supply. Moreover, if there is a main service with ancillary services, it qualifies as a bundled supply. However, it is important to note that the absence of these factors does not necessarily mean the supply is not bundled.

Now, let's delve into the concept of composite supply. A composite supply refers to the supply of two or more goods or services that are naturally bundled together in the ordinary course of business, with one of them being the principal supply. In other words, these items are generally sold as a combination and cannot be supplied separately. To determine if a supply qualifies as composite, it must fulfill two criteria. Firstly, it involves the supply of two or more goods or services together. Secondly, these goods or services are usually provided together in the normal course of business and cannot be separated. In the case of composite supply, the tax rate applicable to the principal supply is charged on the entire supply.

On the other hand, mixed supply refers to a combination of two or more goods or services made together for a single price. Unlike composite supply, each item in a mixed supply can be supplied separately and is not dependent on any other item. In the case of mixed supply, the tax rate applicable to the item with the highest rate of tax is charged on the entire supply.

To differentiate between mixed supply and composite supply, it is essential to rule out the possibility of it being a composite supply. If the items in a supply can be sold separately and are not naturally bundled in the ordinary course of business, then it is considered a mixed supply. For instance, if a person can buy canned foods, sweets, chocolates, cakes, dry fruits, aerated drinks, and fruit juices separately, rather than as part of a Diwali gift box, it is not considered a mixed supply. Each item in such a case will be taxed separately.

Therefore, the distinction between mixed supply and composite supply is crucial in determining the applicable tax rate and ensuring accurate tax treatment for various supplies under GST. By understanding these concepts, businesses can navigate the intricacies of GST effectively and comply with the law.

Note: The examples in this article are for illustrative purposes only and not exhaustive.