Question
When goods are packed and transported with insurance,
the supply of goods, packing materials, transport and insurance as per provisions of CGST Act, 2017, is called as:Solution
When goods are packed and transported with insurance, the supply of goods, packing materials, transport and insurance is called a composite supply. This is because all of the elements of the supply (goods, packing materials, transport, and insurance) are naturally bundled together and supplied in conjunction with each other in the ordinary course of business. The principal supply in a composite supply is the supply of goods. This means that the GST rate on the entire supply is determined by the GST rate on the goods.
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