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Sale of Mixed & Composite Supplies under GST in Tally.ERP9

Under GST , all supplies which are bundled with two or more supplies of goods or services or combination of goods and services are classified, with distinct characteristics as:

  • Mixed Supply
  • Composite Supply

It is important thus to understand the implications of composite supply vs. mixed supply, especially in the GST era.

Mixed Supply under GST :

The supply of two or more individual supplies of goods or services, or any combination of goods and services, by a taxable person, for a single price, is called a Mixed Supply.

The GST Rate on Mixed Supply will be the Highest GST Rate applicable on the goods or services included in the given combination of the mixed supply.

Consider a kit which contains as below, a watch, a pen, a tie and a wallet as a combo for Rs. 4,000.

Graphical Example of Mixed Supply under GST in TallyERP9
(Fig-159)

In the illustration,

  • Watch, Pen, Tie and Wallet are bundled as a kit.
  • The supply of a tie does not naturally necessitate the supply of other elements (Watch, Wallet, and Pen) and vice versa.
  • The kit is supplied for a single price. Hence, the supply of this kit is a mixed supply.

To calculate the tax liability on mixed supply, the tax rate applicable on the goods or services attracting the highest rate of tax, in the combination of goods and services, will be considered. In this case it is 18%, the highest tax rate.

Composite Supply under GST :

The supply of two or more supplies of goods or services by a taxable person, which comprises of a combination of goods and services naturally bundled and supplied together in the ordinary course of business, is called as a Composite Supply.

The elements in a composite supply of goods and services are generally bifurcated as:

  • Principal Supply - the pre-dominant element in the Composite Supply of goods or services
  • Dependent Supply - dependent on the principal supply

A Composite Supply example could be –

a 5 star hotel in Mumbai providing a Stay Package with Breakfast.

This will be a Composite Supply as the package of accommodation facilities and breakfast is a natural combination in the ordinary course of business for a hotel. In this case, the hotel accommodation is the principal supply, and breakfast is the dependent supply.

The GST rate on Composite Supply will be equal to the GST Rate Applicable on the Principal Supply of such Goods and Services, included in the composite supply.

1. Sale of Mixed Supply under GST in Tally.ERP9

Step-1 : Create Stock Item for the Mixed Supply with GST details in Tally.ERP9

Create stock items for the products Watch, Wallet, and Pen with applicable tax. Now for corporate offer, create one more product - Corporate Kit, as shown below by enabling BOM and description (press F12 Configure to enable options Add description for stock items and Enable component list details (Bill of Materials) :

1.  Go to Gateway of Tally > Inventory Info. > Stock Items > Create .

Creating Stock Items for Sale of Mixed Supply in TallyERP9
(Fig-160)

2.  Create BOM, and add items which are part of combo kit. In this scenario, each item has one quantity for one Corporate Kit:

Stock Item Components under BOM for Mixed Supply Sale in TallyERP9
(Fig-161)

3.  Now enable GST for Corporate Kit, enter the HSN code and tax rate of the item which has the highest tax rate of among the combo.

Assigning GST Rate of Mixed Items Kit for sale of Mixed Supply in TallyERP9
(Fig-162)

Your stock item for the mixed supply is created and ready to be used in transactions.

Step-2 : Transfer Individual Items to Mixed Supply Stock Item in Tally.ERP9

Since items are procured individually and used to create the corporate kit. The items need to be transferred to reduce the quantity of individual items and create stock quantity for the combo kit.

Before transferring the items to corporate kit, the stock summary will appear as shown:

Stock Summary of Mixed Items sale in TallyERP9
(Fig-163)

In Tally.ERP 9 the transfer can be achieved by recording a stock journal voucher for transfer of items. You have to create a voucher type under stock journal to record such transaction.

1.  Go to Gateway of Tally > Inventory Info. > Voucher Type > Create .

Creation of Voucher Type of Manufacturing Journal for sale of Mixed Supply in TallyERP9
(Fig-164)

2.  Enable the option Use as a Manufacture Journal?

3.  Save the voucher type.

Now transfer the items to Corporate Kit using newly created stock journal voucher.

To transfer items to create 10 Corporate kits

1.  Go to Gateway of Tally > Inventory Vouchers > Press Alt + F7 to select the specific voucher type.

2.  Select Corporate Kit in field Name of the product .

3.  Select Name of BOM .

4.  Specify Qty as 10. Automatically, related items will be moved under the kit as shown below:

Stock Journal Voucher for Manufacture of Mixed Items Sale in TallyERP9
(Fig-165)

5.  Save the transaction.

After the stock transfer, the stock for the corporate kit is increased and individual items stock is reduced to the same extent.

Stock Summery of Mixed Items after Stock Transfer in TallyERP9
(Fig-166)

Step-3 : Sale Voucher of Mixed Supply of Goods in Tally.ERP9

1.  Go to Gateway of Tally > Accounting Vouchers > F8: Sales .

2.  Click F12: Configure and enable the option Provide additional descriptions for stock item name? to view the additional description recorded in stock item master.

3.  Select the applicable tax ledgers (central and state/union territory taxes for local supply, integrated tax for interstate supply).

Sale Voucher of Mixed Supply of Goods in TallyERP9
(Fig-167)

4.  Save the transaction.

5.  Open the voucher in alteration mode and click : Print . The printed invoice with item description, discount value and GST tax details appears as shown:

Print Preview of Sale Voucher of Mixed Supply of Goods in TallyERP9
(Fig-168)

2. Sales of Composite Supply Under GST (Expense Apportioning) Using Sales Invoice in Tally.ERP9

You can record the sales of a composite supply using a sales invoice. The rate of tax applicable on the principal supply will be considered as the rate of tax for the composite supply.

For composite supply:

  1. Create a service ledger to participate in the sales of composite supply .
  2. Record sales of composite supply .

Step-1 : Create Service Ledger for Sale of Composite Supply under GST in Tally.ERP9

1.  Go to Gateway of Tally > Accounts Info. > Ledgers > Create .

Creating Service Ledger for Sale of Composite Supply under GST in TallyERP9
(Fig-169)

2.  Is GST Applicable? - Not Applicable . The option Include in assessable value calculation for appears.

3.  Include in assessable value calculation for - GST .

  • Appropriate to - Goods , as the principal supply is considered as goods in this example.

4.  Press Ctrl+A to accept.

Step-2 : Sales of Composite Supply with Goods as Principal Item and Service (Expenses) is secondary in Tally.ERP9

1.  Go to Gateway of Tally > Accounting Vouchers > F8: Sales .

Sale of Composit Supply with both Goods and Services (Expenes) under GST in TallyERP9

(Fig-170)

2.  Select the service ledger (in this example, the ledger applicable for transportation charges) .

3.  Select the applicable tax ledgers (central and state/union territory taxes for local supply, integrated tax for interstate supply).

You can view the tax details by clicking : Tax Analysis . Click F1 : Detailed to view the tax break-up.

Tax Analysis of Sale Invoice of Composit Supply with both Goods and Services (Expenes) under GST in TallyERP9
(Fig-171)

 
GST Sales in Tally.ERP9 - Nil Rated, Exempted, Sales involves Consignee and Buyer, Works Contract Service GST Using Tally.ERP9 Sale of Sevices as Reverse Chargeable (RCM) under GST in Tally.ERP9


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