Geometry Compass Box Classified as Mixed Supply, Attracts 18% GST: AAR

The Authority for Advance Ruling (AAR) classified a geometry compass box as a mixed supply, attracting an 18% Goods and Services Tax (GST) rate. The AAR determined that the compass box, containing various items like a compass, scale, and protractor, constitutes a composite supply where the principal supply cannot be distinctly identified, thus falling under the tax rate applicable to the highest-rated item within the box. This ruling clarifies the GST treatment for such educational kits and emphasizes the importance of correctly classifying supplies consisting of multiple goods to determine the applicable tax rate. Businesses dealing with such mixed supplies need to carefully consider the classification to ensure accurate tax compliance.