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TMI BlogThe Meaning and Scope of SupplyX X X X Extracts X X X X X X X X Extracts X X X X ..... ake laws with respect to levy of goods and services tax on inter-state supply. The term, supply has been inclusively defined in the Act. The meaning and scope of supply under GST can be understood in terms of following six parameters, which can be adopted to characterize a transaction as supply: 1. Supply of goods or services. Supply of anything other than goods or services does not attract GST. 2. Supply should be made for a consideration 3. Supply should be made in the course or furtherance of business 4. Supply should be made by a taxable person 5. Supply should be a taxable supply 6. While these six parameters describe the concept of supply, there are a few exceptions to the requirement of supply being ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ployment. 2. Services of funeral, burial, crematorium or mortuary including transportation of the deceased. 3. Sale of land and, sale of building where the entire consideration has been received after completion certificate is issued or after its first occupation. Actionable claims are included in the definition of goods, however, schedule III provides that actionable claims other than lottery, betting and gambling shall be neither goods nor services. Supply for consideration Consideration has specifically been defined in the CGST Act, 2017. It can be in money or kind. Any subsidy given by the Central Government or a State Government is not considered as consideration. It is immaterial whether the payment is made by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4. Import of services by a taxable person from a related person or from any of his other establishments outside India, in the course or furtherance of business. Supply in the Course or Furtherance of Business GST is essentially tax only on commercial transactions. Hence only those supplies that are in the course or furtherance of business qualify as Supply under GST. Hence any supplies made by an individual in his personal capacity do not come under the ambit of GST unless they fall within the definition of business as defined in the Act. CBEC vide press release dated 13.07.2017 has clarified that sale of old gold jewellery by an individual to a jeweller will not constitute supply as the same cannot be said to be in the cours ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tes supply under GST. Taxable supply For a supply to attract GST the supply must be taxable. Taxable supply has been broadly defined and means any supply of goods or services or both which is leviable to tax under the Act. Exemptions may be provided to the specified goods or services or to a specified category of persons / entities making supply. Supply in the taxable territory For a supply to attract GST the place of supply should be in India except the state of Jammu and Kashmir. The place of supply of any goods or services is determined based on Sections 10, 11, 12 and 13 of IGST Act 2017. Inter/Intra State supply The location of the supplier and the place of supply determines whether a supply is treated as an Int ..... X X X X Extracts X X X X X X X X Extracts X X X X
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