UPS & battery supplied at combined ‘single price’ constitutes a ‘mixed supply’: WBAAAR
Facts: M/s Switching Avo Electro Power Ltd which is engaged in manufacture of power backups including uninterrupted power supply system and solar products. The appellant has sought for advance ruling on the classification of supply of UPS along with batteries.
Issue Involved: Whether supplies of UPS along with external storage batteries are naturally bundled which could be treated as composite supply or mixed supply within the meaning of Section 2(30)/2(74) of CGST Act/ WBGST Act, 2017.
Held: The Hon’ble AAAR, West Bengal vide Order No. 04/WBAAAR/Appeal/2018 dated May 10,2018, upholds the order of AAR, supply of UPS and battery under a single contract at a combined single price, liable to GST as ‘mixed supply’ u/s 2(74) of CGST/WBGST Act, 2017. when UPS is supplied with built-in batteries i.e the supply of battery is inseparable from supply of the UPS, then it should be treated as a ‘composite supply’ under the tariff heading 8504 under Sl. No. 375 of Schedule III in terms of Notification No. 1/2017-Central Tax (Rate). However, it has further been decided that the strength of the battery or make of a battery or the number of battery is not unique to UPS but varies as per requirement of the customer and therefore, same can be put to different uses when supplied with UPS, holds that supply in present case cannot be considered as a ‘composite’ or ‘naturally bundled supply’.
Citation: [TS-386-AAAR-2018-NT]