If a person makes a supply composed of more than one component for a single price, such person shall determine whether the supply constitutes a single composite supply or multiple supplies.

The phrase 'single composite supply' means any supply of goods or services, where the supply has more than one component, taking into account the contract and circumstances of the supply as a whole.

Any supply shall be considered a single composite supply in the following cases:

1. If the supply includes all of the following:

   1. A principal component;

   2. A component or components essential or necessary to the supply, including incidental elements which naturally accompany the supply, but are not a significant part of it, or do not constitute an aim in themselves, but a means of better enjoying the principal supply.

2. If the supply comprises two or more elements so closely linked as to form a single indivisible supply which it would be artificial to split.

A single composite supply may occur if all of the following conditions are met:

1. The supplier shall not define the price of the components of the supply separately or charge a different price for the same.

2. All components of the supply shall be supplied by a single supplier.

If a taxable person supplies more than one component for a single price and the supply is not a single composite supply, then the supply of the components shall be deemed multiple supplies.