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Services can't be called as 'naturally bundled' where buyer has an option to choose services separately out of bundle

September 4, 2020[2020] 119 taxmann.com 25 (AAAR-KARNATAKA)
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GST: Package of bundled services supplied by appellant for a single price in terms of Relocation Management Service Agreement (RSA) and Statement of Work (SOW), is a mixed supply in terms of section 2(74) and taxability of mixed supply will be determined in terms of section 8(b)

• In addition, appellant also provides different packages of bundled services and there is a specific rate for each such package. Client may choose several individual services from list (called as 'a la carte' services) or may opt for any package. However, it cannot be said that services are so bundled in ordinary course of business. Moreover, fact that client can choose from list of services based on employee requirement shows that there is no natural bundling of services in this case. Bundling of services is a construct of appellant's business model to which there is a commercial expediency. They are bundled based on requirement of client. Therefore, 'a la carte' services provided by appellant, relating to employee relocation is neither a composite supply nor a mixed supply.

• [Cartus India (P.) Ltd., In re [2019] 110 taxmann.com 345 (AAR - KARNATAKA) – Modified]

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