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COMPOSITE SUPPLY
Composite supply means
• consisting of two or more taxable supplies
• naturally bundled
• in conjunction with each other
• in the ordinary course of business,
• one of which is a principal supply.


For e.g. Machinery (supply of goods) provided along with warranty and maintenance contract.
Principal supply – as per Section 2(90) of CGST Act means supply of goods or services which constitutes the predominant element of a composite supply
“Whether services are bundled in the ordinary course of business
• Perception of the consumer or the service receiver
• Majority of service providers in the in a particular area of business provide similar bundle of services
• The nature of various services
• Advertised as a single package
• Single Price
• different elements aren’t available separately
• different elements are integral to one overall supply


No straight jacket formula can be laid down to determine whether a service is naturally bundled in the ordinary course of business.
Each case has to be individually examined in the backdrop of several factors.