/
Concept of Supply
o Levy and Collection of GST - (Sec. 9]
MEANING AND o Scope of Supply under GST - (Sec. 7]
SCOPE OF o Meaning of Taxable Event
o Taxable event in the erstwhile
SUPPLY UNDER indirect tax system
SUPPLY oTaxable event in GST
GST
Taxable event in the Indirect tax system
prior to GST
Taxable Event prior
to cST
Provision of Service
Tax/Dutíes
Levied
Service Tax
Taxable
Event in
Levy of Tax in GST
Supply in GST
Manufacture or Exclse Duty
Gopds
Gopds imparted into Custom Duty
or exported Irom sUPPLY OFOne Tax, I.e. Goods
India GOODS and Servlce Tax
InterState Sale of
g0ods
Intra-State Sale af
Central Sales
Tay
Value Added
AND/OR would be levled on
SERVICESs supply of goods and
services
GST SUPPLY f
goods Tax
Provision of Entertalnment
Entertainment Tax
Scope of Supply - Section 7 of CGST Ac, 2017 Scope of Supply: Contd.
Supply includes :7(1)X(a): Supply by an entity lo its constituent members or vice versa.
aAll forms of supply of goods or services or both such as sale, amended by Finance Act, 2021, retrospective amendmcnt wef July 1,
2017)
transfer, barter, exchange, llcence, rental, lease or disposal
made or agreed to be made fọr a consideratlon by a person In o Sec 7(1A): The expression 'Supply' includes:. Activities deemed as
supply of goods or supply of services as speciied in schedule Il
the course or furtherance of business: [Amended vide CGST (Amendment) Act, 2018).
Import of servlces for a conslderation whether or not in the
o Sec 7(2) - Neither treanted as supply of goods nor services.
course or furtherance fbusiness. o Sec 7(2Xa): Activities not treaied as supply as specificd in schedule Il
o Sec 7(2Xb): Activities or transaction undertaken by government.
GThe actlvities specified In Schedule I, made or agreed to be o Section 7(3): Activities to be notified by government
Governnent may specify activiticsb y notification tot
made without a conslderatlon to be treated as a
Sunnh of
n
supply of services, or a supply of services
and not tas
as a supply of goods.
61 62
1
Scope of Supply -
Includes
Analysis
Goods [Sec. 2(52)] → every
than MONEY & movable
SECURITIES property other Scope of Supply -
✔
Includes
Actionable claim Actionable Claim (Sec. 2 (1))
Analysis
same mcaning -→
Growing Crops (Schedule IIl) Goods
Transfer of Property Act, 1882
Grass and things, Supply
which are agreed toattached to or forming
part
Non Taxable Supply
(Schedule lI)
contract of supply be severed before supply ofor theunderlanda
(oher than lottery, betting and
gambling)
n
Services |Sec. 2(102)] → Goods
Anything other than when used as a
Money
P
but incudes consideration to setle an
activities
any other mode, from relating to the use of money or its Securities Money |Sece 2(75)| Maam obligation or excbeee with
Indian legal tender of
currency or denominationone form, curency or conversion by cash or by Perder another denomination but
for which a separatedenomination, to another fom, shall not nchude any
consideration is charged: MoyeN qurrency that is held for its
nunismatig value.
Scope of Supply - Analysis SCHEDULE I
Actlvities to be troated as 3upply even W made without Consideration
Example 1: Mr. X sold goods to Mr. Y amounting to Permanent transfer or disposal of business assets where input tax credit has
Under GST, it would be treated as g0ods Rs. 50,000.
have been supplied by been availed on such assets.
Mr. X to Mr. Y and hence GST will be levied. 2. Supply of goods or services or both between related persons or between
distinct persons when made in the course or furtherance of business:
Example 2: Mr. X, a Chartered Accountant has provided his service (Provlded that gifs no cceeding Rs. 50,000 in value in a flnancial year by an employr to
to Mr. Y in filing his income tax returns. Under GST, it would be an employee shall not be treated as supply ofgoods or services or both.)
treated as Mr. X hAs supplied his service to Mr. Y. 3. Supply of goods-
(a) by a principal to his agent where the agent undertakes to supply such goods
on behalf of the principal; or
Eample 3: Mr. X, a dealer of Blue Star air-conditioners transfers receive such
() by an agent to his principal where the agent undertakes to
two air conditioners from his stock in trade for personal use at his goods on behalf of the principal.
residence. As per Schedule I (1) permanent transfer or disposal of
business assets to a private or non-business use without any of
4. Import of services by a taxable person from a related person or frombusiness.
consideration will be treated as supply. of
his other establishments outside India, in the course or furtherance
66
65
SCHEDULE I
OR 8UPPLY OF SERVICE
Why Schedule Il ? ACTMTIES TO BE TREATED AS SUPPLY OF GOODS
Bill 1. Transfer
2. Land and Building
3. Treatment or process
4. Transfer of business assets
5. Supply of Services
6. Composite supply
7. Supply of Goods
90.00
ÇASH
67