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Supply of pencil with sharpener and eraser is not composite supply.

Supply of pencil with sharpener is not a composite supply but a mixed supply as per advance ruling.

#tax #GST #CaseLaws #COVID19
The ruling states that the applicant has used the word “accessory” along with sharpener and eraser which means they are not essential or integral to pencil but they are useful and therefore, they are not naturally bundled.
The AAR

notes that the argument of the applicant that these items are generally sold together in this industry is not acceptable because they are also sold independently and it is a marketing technique to increase sale of sharpener and eraser.
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