How to Determine Composite Supply as a Service or Goods ?

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where supply comprising of two or more supplies, one of which is a principle supply. 



Lets understand this term with an example:-

Suppose : A professional training institute gets its training material printed from a printing press. The content of the material is provided by the training institute who owns the usage rights of the same while the physical inputs including paper used for printing belong to the printer.


Are you Able to Identify, whether supply of  training material by the printing press constitute supply of goods or supply of services ?

Let us Identify:

First understand the term 


What is composite Supply?

 composite supply means a supply made by a taxable person to a recipient and:

- comprises two or more taxable supplies of goods or services or both, or any combination thereof.

- are naturally bundled and supplied in conjunction with each other, in the ordinary course of business

- one of which is principle supply ( Section 2(30) of the CGST Act 2017 )

A composite supply comprises of two or more supplies, one of which is a principle supply, shall be treated as a supply of such principle supply ( Section 8 of the CGST Act, 2017).


In the normal course of business printing press considered supplier of service as is it a printing service, but this is not only the term, 

Principle Supply of is printing of the printing press.


In the case of printing books where content is supplied by the publisher or the person who owns the usage right to the tangible inputs while the physical inputs including paper used for printing belongs to the printer, supply of printing ( of the content is supplied by the recipient of supply) is the principal supply and thereof, such supplies would constitute supply of service. 

Also Circular No, 11/11/2017 dated 20/10/2017 specifically on this point  has clarified that supply of books printed with content supplied by the recipient of such printed goods, is composite supply and the question, whether such supplies constitute supply of goods or service would be determined on the basis of what constitute of the principal supply.

Principal supply has been defined in section 2(90) of the CGST Act as supply of goods or service which constitute the predominant element of composite supply and to which any other supply forming part of that composite supply is ancillary. 

In this case Printing is principal supply and paper used for printing is ancillary to the printing service and thereof, such supplies would constitute supply of service.


After understanding above term next to understand is Mixed Supply. 

I will link the Mixed Supply Here in next blog. 

Please Share, so that I got motivated and will bring for you a good informative content.

Thank You😊




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