Classification of supply—composite supply (naturally bundled service) u/s 2(30) of CGST Act, 2017— whether the consideration payable under the Second Contract for inland/local transportation and ancillary services like in-transit insurance will be taxable under GST - Held that:- The First Contract is no contract at all unless tied up with the Second Contract. The two promises – supply of the goods and their transportation to the Contractee’s site are, therefore, not separately enforceable in the present context. The supplies of goods and services of transportation etc are, therefore, naturally bundled.
Supply of goods, packed and transported with insurance, is a composite supply and supply of goods is the principal supply.
Ruling:- Services of transportation, in-transit insurance and loading/unloading, being ancillary to the principal supply of goods, shall be treated to taxation under Section 8 (a) of the GST Act, and the consideration receivable on that account be taxed accordingly. IAC Electricals Pvt Ltd, In Re....[2018] 2 TAXLOK.COM 144 (AAR-WB)