The Goods and Services Tax (GST) regime in India has brought various concepts to standardize indirect taxation, two of which are Mixed Supply and Composite Supply . These terms might sound similar but have distinct meanings and implications under GST. Correctly categorizing supplies is crucial, as it impacts the applicable tax rates and compliance. Principal Supply: This refers to the good or service which constitutes the predominant element of a composite supply and to which any other goods or services are ancillary. Tax Implications: GST is charged based on the tax rate applicable to the principal supply, irrespective of the tax rates of ancillary items. Define Composite Supply A composite supply consists of two or more goods or services that are naturally bundled and provided together in the usual course of business, with one item being the principal supply. These items are typically sold as a package and are not intended to be offered separately. Example: A common example of a