Composite supply with GST

Composite supply is a unique concept under the Goods and Services Tax (GST) regime. It occurs when two or more goods or services are bundled together, but one of them is the principal supply, and the others are ancillary or supplementary to the principal supply. The entire supply is taxed at the rate applicable to the principal supply.

Your business offers a package deal to customers, including a laptop (principal supply), a printer, and a mouse. The package costs Rs. 40,000, and the applicable GST rate for laptops is 18%. Here’s how you would record this composite supply entry in Tally Prime:

1. Record the composite supply entry in Tally Prime:
   • Debit: Sales Account (Package Deal) – Rs. 40,000
   • Credit: Customer’s Account – Rs. 40,000
   • GST (18%) on the laptop – Rs. 7,200
2. Identify the laptop as the principal supply and apply the GST rate applicable to it.
3. Verify that the composite supply entry is correctly recorded.
4. Ensure that the Input Tax Credit (ITC) is correctly claimed based on the components of the composite supply.