Page 152 - GSTL_23rd July 2020_Vol 38_Part 4

518 GST LAW TIMES [ Vol. 38
The HP Electroink is the principal supply as for the customers and
suppliers, the Electroink is the main component of the supply, as is
evident from the consumption. The ancillary supplies only help in
transferring the ink from the cartridge to the paper.
(d) There is a single price or the customer pays the same amount, no
matter how much package they actually receive or use :
The invoicing is done on a “per click basis” for all the supplies. Eve-
ry customer is charged a single price for all the goods, irrespective
of the fact that in achieving the final output of a print, there is dif-
ferent proportion of Electroink and other ancillaries consumed.
Therefore, where a single price is charged in relation to bundled
supply of goods or services, the said supply cannot be deemed as a
“mixed supply” under GST. The definition of composite supply nei-
ther restricts nor lays down any condition on the manner of pricing
to be adopted for such classification. Accordingly, bundled supplies
having a single price can be classified as a composite supply, where
other conditions are satisfied in this regard.
In this regard, the Applicant wishes to highlight the illustration
provided in the flier issued by the CBIC wherein, activity of supply
of hotel accommodation service along with supply of breakfast for a
single price is considered as a composite supply.
(e) The elements are normally advertised as a package :
All customers enrolled under the tier program are supplied con-
sumables as a bundle. Further, HP’s agreement with Redington as
indicated earlier provides that such goods shall be used only for
commercial printing purpose ensure that these goods are not sold,
and cannot be used individually.
(f) The different elements are not available separately :
HP’s agreement with Redington as indicated earlier provides that
such goods shall be used only for commercial printing purpose en-
sure that these goods are not sold, and cannot be used individually,
as the same are not available separately under the click program.
(g) The different elements are integral to one overall supply. If one or
more is removed, the nature of the supply would be affected :
The desired print output can only be achieved where all these goods
are used as a bundle. They are integral to ensure the final output by
the customer is in the manner required.
Therefore, considering the above facts and explanations, the HP in-
digo consumables supplied under the tier program satisfies all the
conditions of a composite supply.
52. The principles enunciated in the Impugned Order are contradictory
to other Advance Ruling Orders passed by the Maharashtra AAR.
We wish to bring to your attention that in the following rulings, the au-
thorities have held that the transaction is a Composite Supply.
• Fermi Solar Farms Private Limited (Maharashtra Appellate AAR)
[2018 (17) G.S.T.L. 297 (App. A.A.R. - GST)]
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