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Pencil sharpeners sold together will pay a higher GST rate than pencils sold separately

Concerning the GST on pencils and sharpeners, a new update has been released. The Gujarat AAR has outlined the additional GST requirements for pencils and sharpeners. According to the Gujarat AAR, pencils sold with sharpeners will be subject to a higher GST rate than pencils sold without sharpeners, as Mixed Supply requires a higher GST payment. Less GST will be required to be paid if they are sold individually.

Businesses either offer standalone products or packaged products and services. Mix supply is the term used to describe the provision of two or more items offered at the same price. On the other hand, if we discuss overall supply, it refers to the supply of two or more items or services together.

The Finance Ministry adopted an 18% GST for sharpeners in July of last year on the advice of the GST Council. Each product item cannot be given individually for the purpose of commerce, according to the GAAR. Additionally, each may be offered separately. This indicates that supplies for both pencils and pencil sharpeners fall within the category of “mixed supplies.” According to GAAR, the sharpener will be subject to tax even if the kit is inexpensive.

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