Consultancy and Support services aren’t naturally bundled; not treated as Composite Supplies: AAR

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GST : Where applicant has entered into consultancy agreement with foreign ship owner and contended that supply of Marine Consultancy Services (MCS) consisting of consultancy service and support service is a composite supply as these services (i.e., consultancy service and support service) are naturally bundled and supplied in conjunction with each other in ordinary course of business, one of which (i.e., consultancy service) is principal supply,

since foreign ship-owner has categorically made it clear in agreement that some of services may also be availed from other consultants, services are not needed to have been bundled together, and thus, requirement of ‘principal supply’ would, therefore, not be met, and consequently, provision of services under impugned agreement would not be a composite supply under GST Act

Citation-GST-ARA-18/2017-18/B-26

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