Section 2(30) of CGST Act: Meaning of “Composite Supply”

Definition of the term “Composite Supply” under the Central Goods and Services Tax (CGST) Act, 2017

As per Section 2(30) of the Central Goods and Services Tax (CGST) Act, 2017, unless the context otherwise requires, the term “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 conjunction 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.

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