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SECTION 8 OF CGST ACT, 2017 – TAX LIABILITY ON COMPOSITE AND MIXED SUPPLIES 1. Introduction Section 8 of GST Act deals with how tax liability is determined when a supply consists of more than one good or service . 👉 Section 7 answers “what is supply?” 👉 Section 8 answers “how much tax and at what rate?” Thus, Section 8 is the logical continuation of Section 7 . Section 8 applies only when: There is a composite supply , or There is a mixed supply 2. Statutory Provision Section 8 is contained in the Central Goods and Services Tax Act, 2017 . Text of Section 8 (Simplified) Composite Supply → Tax rate of principal supply Mixed Supply → Tax rate of highest taxed item 3. Meaning of Composite and Mixed Supply Before understanding Section 8, we must understand definitions given in Section 2. 4. Composite Supply – Section 2(30) Definition Composite supply means: A supply consisting of two or more taxable supplies of goods or services or both, which are natur...