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The text below is these clauses of the section as served by the CBIC tax information portal on 17 September 2026, with the portal's own amendment footnote markers (shown as small numerals before a bracket) and its footnotes.[1] The Act as published in the Gazette of India is the legal source.
Clauses 2(30), 2(74) and 2(90), verbatim (show)
(30) "composite supply" means a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply;
Illustration.- Where goods are packed and transported with insurance, the supply of goods, packing materials, transport and insurance is a composite supply and supply of goods is a principal supply;
(74) "mixed supply" means two or more individual supplies of goods or services, or any combination thereof, made in conjunction with each other by a taxable person for a single price where such supply does not constitute a composite supply.
Illustration.- A supply of a package consisting of canned foods, sweets, chocolates, cakes, dry fruits, aerated drinks and fruit juices when supplied for a single price is a mixed supply. Each of these items can be supplied separately and is not dependent on any other. It shall not be a mixed supply if these items are supplied separately;
(90) "principal supply" means the supply of goods or services which constitutes the predominant element of a composite supply and to which any other supply forming part of that composite supply is ancillary;
* Enforced w.e.f. 22nd July 2017.
2(30)composite supply
"composite supply" means a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply; Illustration.- Where goods are packed and transported with insurance, the supply of goods, packing materials, transport and insurance is a composite supply and supply of goods is a principal supply;Section 2(30)
A taxable person supplies a recipient with two or more taxable supplies naturally bundled and supplied together in the ordinary course of business, with a principal supply. The law does not settle what makes supplies naturally bundled and supplied in conjunction in that course.
2(74)mixed supply
"mixed supply" means two or more individual supplies of goods or services, or any combination thereof, made in conjunction with each other by a taxable person for a single price where such supply does not constitute a composite supply. Illustration.- A supply of a package consisting of canned foods, sweets, chocolates, cakes, dry fruits, aerated drinks and fruit juices when supplied for a single price is a mixed supply. Each of these items can be supplied separately and is not dependent on any other. It shall not be a mixed supply if these items are supplied separately;Section 2(74)
A taxable person makes two or more individual supplies together for a single price, and the combination is not a composite supply. The statutory illustration distinguishes the packaged combination from its items supplied separately.
2(90)principal supply
"principal supply" means the supply of goods or services which constitutes the predominant element of a composite supply and to which any other supply forming part of that composite supply is ancillary;Section 2(90)
The principal supply is the predominant goods or services element of a composite supply. Every other supply in that composite supply is ancillary to it.
Questions to answer on the file
Questions a reviewer answers from the engagement file, grouped by the part of the section they come from. They describe what the section asks; they do not decide it.
Composite supply, mixed supply and principal supply clauses (30), (74) and (90) with their Illustrations
Questions to answer on the file6 questions
Unsettled questions
The words of section 2 do not answer this question. Where one decides a matter on the file, the answer depends on the position taken on it.
- What makes two or more supplies naturally bundled and supplied in conjunction with each other in the ordinary course of business? Clause (30) turns on the phrase and nowhere defines it. The section 8 record leaves the same phrase unanswered; this position serves both.
References
- Central Board of Indirect Taxes and Customs. "Section 2. Composite supply, mixed supply and principal supply". Central Goods and Services Tax Act, 2017, CBIC tax information portal. Retrieved 17 September 2026.
External links
- CGST Act, 2017, Section 2 on the CBIC tax information portal