# Multiple Supplies Taxed at Individual Rates

## When Does This Apply?

When an activity involves multiple supplies but those supplies are:

Neither composite supply (not naturally bundled), NOR
Mixed supply (no single price),

AND each supply has independent significance with separate consideration shown — then each supply is taxed at its own applicable rate.

## Key Distinction

Scenario	Treatment
Naturally bundled, single price	Composite – rate of principal supply
Not bundled, single price	Mixed – highest rate
Independent, separate consideration	Each taxed individually

## Rule of Thumb

If the invoice shows separate values for goods and services, each line is taxed at its own GST rate.

Worked example

### Example 1

Car Servicing: A service center performs servicing of a car involving spare parts (goods) and labour (service), where the value of goods and the value of labour are shown separately on the invoice. The spare parts are taxed at the rate applicable to those goods and labour is taxed at the rate applicable to repair services. They are NOT clubbed as composite or mixed.

⚠️ Common exam mistakes

Forcing a 'composite' or 'mixed' classification when supplies clearly have separate consideration.
Bunching together goods and services taxable at different rates when the invoice already shows them separately.

Reference:

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