SUPPLY OF GST
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| Supply of GST |
TAXABLE EVENT:-Taxable event under GST law is SUPPLY OF GOODS or SUPPLY OF SERVICES OR BOTH.
Its means NO SUPPLY NO GST
SCOPE OF SUPPLY:- Section 7
Section 7(1)(a):- All forms of SUPPLY OF GOODS OR SUPPLY OF SERVICES or both such as sale, transfer, or disposal or agreed to be made for a consideration by a person in the COURSE OR FURTHERANCE OF BUSINESS.
- GOODS:- Section 2(52) Every kind of movable property other than money, securities including Actionable claims, Growing crops, grass, and things attached to or forming parts of the land which are agreed to be served before SUPPLY.
- ACTIONABLE CLAIMS:-
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| Actionable claims |
- SERVICES: - Section 2(102) Anything’s other than GOODS, MONEY, SECURITIES.
Section 7(1)(b):- Import of Services for a consideration whether or not in the COURSE OR FURTHERANCE OF BUSINESS.
In simple ways, if any services are import in India whether connected in business or not shall be levied GST then whole services deemed to be SUPPLY if supply then GST shall be levied.
- This section is applicable only for SERVICES & not for GOODS.
- Import of services as referred under section 2(11) of IGST Act,2017, where
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| Supply of Services |
Example: - MR.A, a proprietor has received the architect services for his house in Jaipur from an architect located in London at an agreed consideration of Rs 10,000/-. The import of services by MR. A is a supply under section 7(1)(b) though it is not in the course or furtherance of business.
NOTE:-If services may be in course of furtherance of business or not this implies that import if services even for personal consumption would qualify as SUPPLY and if SUPPLY then GST shall be levied.
Section 7(1)(c):- Activities specified in SCHEDULE 1 made or agreed to be made without consideration.
SCHEDULE 1:-
- Permanent transfer or disposal of business assets where ITC has been availed on such assets.
Example:- Mr.Rohit is the director of the XYZ company and 5th June 2020 purchase 4 computers at RS 2,00,000/- and paid GST @10% RS 20,000/- and value of goods is Rs 2,20,000/- and 18th Aug 2020 ITC has been taken by Mr.Rohit then thereafter MR. Rohit donates all 4 computers to NGOs without consideration. since ITC was taken earlier, it would be considered as DEEMED SUPPLY.
- Supply of goods and/or services between related persons or distinct persons:- SUPPLY OF GOODS or SERVICES or both between:-
NOTE:- Gifts not exceeding Rs.50,000/- in value in a financial year by employers to an employee shall not be treated as SUPPLY OF GOODS or SERVICES or both.
Example: - Mohan, a Chartered Accountant, has a registered Head-office in Delhi. He has also obtained registrations in the state of West Bengal in respect of his newly opened branch office. Mohan shall be treated as distinct persons in respect of registrations in West Bengal and Delhi.
- Supplies by the principal to an agent or vice-versa supply of goods:-
- Supply of goods by principal to his agents where agents have undertaken to supply such goods on the behalf of the principal;
` 2. Supply of goods by agents to his principal where an agent undertakes to receive such goods on behalf of the principal.
- Import of services by a person from a related person or from any of his other establishments outside India, IN THE COURSE OR FURTHERANCE OF BUSINESS.
Section 7(1)(d):-The activities to be treated as supply of goods or supply of services as referred to in SCHEDULE II
Section7(1)(1A):- Certain activities shall be treated either as supply of goods or supply of services as referred to be in SCHEDULE II.
In schedule II,7 activities or transactions is specified TRANSFER/LAND & BUILDING/TREATMENT OR PROCESS/TRANSFER OF BUSINESS ASSETS/SUPPLY OF SERVICES/COMPOSITE SUPPLY/SUPPLY OF GOODS whether treated as either supply of goods or services.
