Supply under GST Law

Supply under GST is defined under Section 7 CGST Act, 2017 (read along with schedules laid down under said act) as explained hereunder: -



Section 7, CGST Act-2017

 

S.7(1)-Supply includes

S.7(1A)

 

S.7(2)

 

S.7(3)

 

7(1)(a)-All forms of Supply of* G/S/B made/to be made for consideration in course/furtherance of business

 

Classify supply as supply of G/S as stated under Sch-II of CGST Act-2017:

(P.1)- Trf. Of goods: involves trf. Of title at current/future point of time then only it be supply of goods or else it is only supply of services;

(P.2)- Lease of land/comm./Indus./Resi complex is a supply of service;

(P.3)- SoS= Job-work services;

(P.4)- SoG: a. business goods trf. for personal use on owner’s direction; b. Goods still being part of business however, owner/business ceases to be registered under GST; SoS: Business Goods used for pvt. Purpose;

(P.5)- SoS: Rent-out/Construction/Trf. Or allowing use of IPR/Devp. IT software/trf. RoU for consideration/Agree to Refrain or tolerate or perform any act;

(P.6)- WCS/Supply of restaurant service are deemed supply of service only.

Below activity shall not be included in Supply as stated under Sch-III of CGST Act-2017:

(P.1)- Services by ‘ee to ‘er under contract of employment;

(P.2)- Services by court/tribunal/consumer redressal forum;

(P.3)- Functions/Duties entrusted to MP/Member of State Legislature/MLA/Member of panchayat or municipality/Post held as per authority assigned under Indian Constitution/Chairperson, member, director in body set-up by CG/SG/LA;

(P.4)- Service of funeral/burial/crematorium/mortuary/transportation of deceased;

(P.5)- Sale of land or sale of building subject to Sch.II P.5;

(P.6)- Supply of Actionable claim other than lottery/betting/gambling;

(P.7)- Supply from one NTT to another NTT w/o goods entering India is not supply;

(P.8)- a. Supply of warehoused goods w/o obtaining clearance of same; b. Supply of goods by way of trf. Of title docs. While goods are dispatched from port in foreign country and still in high sea  

 

 

 

 

 

 

                                                          

Govt. may specify any supply as supply of G/S

 

7(1)(aa)-Activities/Transac.  by person other than indi. To its members/constituents or vice-versa for cash/delayed payment /other consideration

7(1)(b)-Import of services for consideration whether or not in course/furtherance of business

7(1)(c)-Activities listed under Sch-I of CGST Act-2017, deemed as supply w/o consideration-

(P.1)- Business Asset on which ITC allowed and availed in past, if is now being disposed off even w/o consideration, still it is suppy;

(P.2)- Any supply of G/S betwn. related (other than principal-agent)/distinct person w/o consideration, is still a supply;

(P.3)- Betwn. principal-agent (invoices raised/issued in name of agent), any supply of goods even if w/o consideration, is still a supply;

(P.4)- Import of services from any related person outside India/from his estd. Outside India even if w/o consideration but in course/furtherance of business, is still a supply.

Abbreviation

Stands For

Abbreviation

Stands For

G/S/B

Goods/Services/Both

SoS

Supply of Services

Transac.

Transaction

Devp.

Development

Indi.

Individual

RoU

Right of Use

Sch

Schedule

WCS

Work Contract Service

w/o

Without

‘ee

Employee

G/S

Goods/Services

‘er

Employer

Betwn.

Between

CG/SG/LA

Central Government/State Government/Local Authority

Estd.

Established

NTT

Non-Taxable Territory

Trf.

Transfer

P.

Paragraph

SoG

Supply of Goods

 

 

Hope, it is being helpful in providing summarised understanding of what supply (taxable event) is for attracting levy of GST. Stay tuned for more of such summary content.

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