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TMI BlogMeaning and Scope of SupplyX X X X Extracts X X X X X X X X Extracts X X X X ..... are the necessary elements that constitute supply under CGST/SGST Act? Ans. In order to constitute a supply , the following elements are required to be satisfied, i.e.- (i) the activity involves supply of goods or services or both; (ii) the supply is for a consideration unless otherwise specifically provided for; (iii) the supply is made in the course or furtherance of business; (iv) the supply is a taxable supply; and (v) the supply is made by a taxable person. Q 5. Can a transaction in which any one or more of the above criteria is not fulfilled, be still considered as supply under GST? Ans. Yes. Under certain circumstances such as import of services for a consideration whether or not in the course or furtherance of business ( Section 7(1) (b)) or supplies made without consideration, specified under Schedule-I of CGST /SGST Act, where one or more ingredients specified in answer to question no.4 are not satisfied, it shall still be treated as supply for levy of GST. Q 6. Import of Goods is conspicuous by its absence in Section 7. Why? Ans. Import of goods is dealt separately under the Customs Act, 1962 , wherein IGST and compensa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot constitute supply. Q 11. A dealer of air-conditioners permanently transfers an air conditioner from his stock in trade, for personal use at his residence. Will the transaction constitute a supply? Ans. Yes. As per Sl. No.1 of Schedule-I , permanent transfer or disposal of business assets where input tax credit has been availed on such assets shall constitute a supply under GST even where no consideration is involved. Q 12. Whether provision of service or goods by a club or association or society to its members will be treated as supply or not? Ans. Yes. Provision of facilities by a club, association, society or any such body to its members shall be treated as supply. This is included in the definition of business in section 2(17) of CGST /SGST Act. Q 13. What are the different types of supplies under the GST law? Ans. (i) Taxable and exempt supplies. (ii) Inter-State and Intra-State supplies, (iii) Composite and mixed supplies and (iv) Zero rated supplies. Q 14. What are inter-state supplies and intra-state supplies? Ans. Inter-state and intra-state supplies have specifically been defined in Section 7(1) , 7(2) and 8( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s (iv) services of funeral, burial, crematorium or mortuary and (v) sale of land and (vi), actionable claims other than lottery, betting and gambling shall be treated neither a supply of goods or supply of services. Vide the CGST (Amendment), 2018 , following transactions have also been inserted in the schedule-III: (vii) Merchant Trading or Out and Out transactions: Supply of goods from a place in the non-taxable territory to another place in the non-taxable territory without such goods entering into India. (viii). (a) Supply of goods while the same are still in Customs Bonded warehouse: Supply of warehoused goods to any person before clearance for home consumption; (viii) (b) High Seas Sales: Supply of goods by the consignee to any other person, by endorsement of documents of title to the goods, after the goods have been dispatched from the port of origin located outside India but before clearance for home consumption. Q 20. What is meant by zero rated supply under GST? Ans. Zero rated supply means export of goods and/or services or supply of goods and/or services to a SEZ developer or a SEZ Unit. Q 21. Will import of ser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Q 26. Whether retreading of tyres is a supply of goods or services? Ans. In retreading of tyres, which is a composite supply, the pre-dominant element is the process of retreading which is a supply of service. Rubber used for retreading is an ancillary supply. Therefore, it is a supply of service. On the other hand, supply of retreaded tyres, where the old tyres belong to the supplier of retreaded tyres, is a supply of goods (retreaded tyres under heading 4012 of the Customs Tariff) ( CBIC Circular No. 34/8/2018-GST dated 1st March, 2018 ) Q 27. Whether activity of bus body building, is a supply of goods or services? Ans. The classification would depend on which supply is the principal supply. In case, a bus body building company builds on the chassis owned by it and sells the completely built buses, it would be supply of goods. On the other hand, if the company builds the body on the chassis belonging to some else, it would be supply of services. Q 28. Whether foods supplied to the patients as part of the healthcare services in hospitals taxable? Ans. Health care services provided by the clinical establishments will include food supplied to the pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n from raw silk or silk worm cocoons for supply of silk yarn Any registered person 4A Raw cotton Agriculturist Any registered person. 5 Supply of lottery State Government, Union Territory or any local authority Lottery distributor or selling agent 6 Used vehicles, seized and confiscated goods, old and used goods, waste and scrap Central Government, State Government, Union territory or a local authority Any registered person 7 Priority Sector Lending Certificate (Notf. 11/2018 Central Tax (Rate) dt. 28.05.2018 Any registered person Any registered person Q 31. Whether insurance service is under reverse charge? Ans. Service supplied by an insurance agent to any person carrying on insurance business, located in taxable territory is under the reverse charge mechanism. The Notification No. 3/2018- Central Tax (Rate) dated 25th January, 2018 defines insurance agent and ta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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