Page 161 - GSTL_7th May 2020_Vol 36_Part 1

2020 ] IN RE : AQUAA CARE (SURAT) RO TECHNOLOGIES PRIVATE LIMITED 119
(iii) The applicant has also attaching the photos of the water in container
which clearly proves that the container is not sealed.
Thus, with detailed submission hereinabove the applicant believes that the transaction of
selling of water by the applicant is exempt from GST.
2.8 Question No. 2 :-
Where applicant is selling water in containers whether selling of container and
water is composite supply?
Provisions of CGST Act, 2017 for Composite SUPPLY :-
Section 2(30) of CGST Act, 2017 and Illustration as given in the Act :-
“composite supply” means a supply made by a taxable person to a recipient
consisting of two or more taxable supplies of goods or services or both, or
any combination thereof, which are naturally bundled and supplied in con-
junction with each other in the ordinary course of business, one of which is
a principal supply;
Illustration. Where goods are packed and transported with insurance, the
supply of goods, packing materials, transport and insurance is a composite
supply and supply of goods is a principal supply;
Further Section 8 of The CGST Act, 2017 deals with taxability of composite or a
mixed supply, which reads as under :-
The tax liability on a composite or a mixed supply shall be determined in
the following manner, namely :-
(a) a composite supply comprising two or more supplies, one of
which is a principal supply, shall be treated as a supply of such
principal supply;
2.9 Understanding and Interpretation of the applicant :-
(i) For being a composite supply there [are] 3 conditions which [are] to
be satisfied :-
 two or more taxable supplies of goods or services or both;
 naturally bundled and supplied in conjunction with each
other in the ordinary course of business; and
 one of which is a principal supply.
If the above three conditions are satisfied then the supply shall be
taxable at the rate of principal supply of goods or services.
Let’s evaluate the provisions pertaining to composite supply in the
present case :-
For selling of purified water it is to be filled in some glass, bottles or
containers.
In case the customer carry the same on their own there is nothing
like composite supply as first condition two or more taxable sup-
plies are not there.
(ii) In case where the applicant is providing the container;
 the applicant is supplying water and for supply of water they
are providing containers and hence there is supply of two or
more taxable supplies;
 water cannot be sold standalone without filling in the con-
tainers and thus the supply is naturally bundled and sup-
GST LAW TIMES  7th May 2020  161