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CMA Intermediate · Direct and Indirect Taxation · Computation of GST Liability

Sharma Traders, a registered supplier, sells a gift pack for Rs 2,000 in a single price. It contains chocolates (GST 18%), dry fruits (GST 12%) and a scented candle (GST 5%). The items are not naturally bundled and none is the principal supply. GST payable on the pack is:

GST payable is Rs 360. The gift pack is a mixed supply, so it is treated as the item attracting the highest rate, which is 18 percent, and 18 percent of Rs 2,000 equals Rs 360.

  1. ARs 360Correct
  2. BRs 240
  3. CRs 100
  4. DRs 233

Explanation

The pack is a mixed supply because the items are not naturally bundled, and Section 8(b) treats it as the supply attracting the highest rate. The highest rate is 18%, so tax is 2,000 x 18% = Rs 360. Rs 240 wrongly uses 12%.

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