Project Explores Indirect Tax Concept of Supply Under GST

PROJECT OF LAW OF TAXATION-II (INDIRECT TAXES)
SUBMITTED TO AND UNDER

GUIDANCE OF DR. KAMLESH
KUMAR SHUKLA SIR

KUMAR SHUKLA SIR

KUMAR SHUKLA SIR
EXPLORATION AND ASSESSMENT OF THE CONCEPT OF SUPPLY

UNDER GST
1. INTRODUCTION
Under GST, Supply is considered a taxable event for charging tax. The liability to pay tax arises
at the ‘time of supply of goods or services’. Thus, determining whether or not a transaction falls
under the meaning of supply is important to decide GST’s applicability 1.The taxable event in
GST is supply of goods or services or both. Various taxable events like manufacture, sale,
rendering of service, purchase, entry into a territory of state etc. have been done away with in
favour of just one event i.e. supply. The constitution defines “Goods and Services Tax” as any
tax on supply of goods, or services or both, except for taxes on the supply of the alcoholic liquor
for human consumption. The Central and State governments will have simultaneous powers to
levy the GST on Intra-State supply. However, the Parliament alone shall have exclusive power to
make laws with respect to levy of Goods and Services Tax on Inter-State supply 2.Under the
erstwhile indirect tax regime, there was no concept of Supply. The stage at which indirect taxes
were levied varied under different tax laws. The ‘excise duty’ was charged on goods
manufactured when they were taken out of the factory. ‘Service Tax’ was levied based on certain
rules known as the ‘point of taxation’ rules, for services rendered. A VAT would arise on the
value of the sale of goods or provision of services. The present system has merged all taxes to
maintain a single taxable event3.
2. RELEVANT DEFINITIONS
Supply includes sale, transfer, exchange, barter, license, rental, lease and disposal. If a person
undertakes either of these transactions during the course or furtherance of business for
consideration, it will be covered under the meaning of Supply under GST.
As per Section 74 of the GST Act, Supply includes: All forms of supply of goods and/or
1
Definition of Supply under GST: Scope Explained, cleartax.in, https://cleartax.in/s/supply-under-gst-scope, last
visited on 01/04/2019
2 SUBMITTED TO AND UNDER
GST: The Meaning and Scope of Supply, cbec-gst.gov.in, https://cbec-gst.gov.in/pdf/e-version-gst-fliers/eflier-
GUIDANCE OF DR. KAMLESH , last visited on 02/04/2019
meaning-scopeofsupply14062017.pdf
3 KUMAR SHUKLA SIR
4
services such as 1) sale, 2) transfer, 3) barter, 4) exchange, 5) license, 6) rental, 7) lease or

8)Disposal, made or agreed to be made for a consideration by a person in course of or
furtherance of business.
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. Supply should be made within the taxable territory5.
While these six parameters describe the concept of supply, there are a few exceptions to the
requirement of supply being made for a consideration and in the course or furtherance of
business. Any transaction involving supply of goods or services without consideration is not a
supply, barring few exceptions, in which a transaction is deemed to be a supply even without
consideration. 6 Further, import of services for a consideration, whether or not in the course or
furtherance of business is treated as supply.
Meaning of various Terms:

1. Sale: Transferring the property in goods from one to another, upon valuable
consideration.
2. Transfer: Any transfer of goods or right in goods or of undivided share in goods without
transfer of title thereof.
3. Barter: To exchange one commodity for another without use of money.
4. Exchange: To swap, to part with, give or transfer for an equivalent with the use of
money.
5. License:
SUBMITTED TO Permission
AND UNDER granted by competent authority to exercise certain privileges
GUIDANCE
visited OF DR. KAMLESH
on 01/04/2019
5 KUMAR SHUKLA SIR
meaning-scopeofsupply14062017.pdf , last visited on 02/04/2019
6
Ibid.
without such authorization the activity would have constituted as an illegal act7.
6. Rental: Periodical payment for the use of another property.
7. Lease: Contractual agreement by which one party conveys an estate in property to
another party, for a limited period, subject to various conditions, in exchange for
something of value, but still remain ownership.
8. Disposal: To pass or into the control of someone else; to alienate, bestow, or part with.
As per section 2(52)8 “goods” means every kind of movable property other than money and
securities but includes actionable claim, growing crops, grass and things attached to or forming
part of the land which are agreed to be severed before supply or under a contract of supply.
As per section 2(102)9 “services” means anything other than goods, money and securities but
includes activities relating to the use of money or its conversion by cash or by any other mode,
from one form, currency or denomination, to another form, currency or denomination for which
a separate consideration is charged; Example: A foreign exchange dealer while exchanging
one currency for another also charges a commission (often inbuilt in the difference between the
purchase price and selling price currency). The related activity of providing the services for
which a commission is charged separately would be very much a ‘supply’ 10. In relation to the
supply of goods or services or both includes—(a) any payment made or to be made, whether in
money or otherwise, in respect of, in response to, or for the inducement of, the supply of goods
or services or both, whether by the recipient or by any other person but shall not include any
subsidy given by the Central Government or a State Government;
1. Consideration can be in monetary or non-monetary form or partly in monetary form and

partly in non-monetary form.
(a) Monetary consideration includes payment by cash, cheque or credit card, bank transfer and
deduction from bank account.
(b) Non-monetary consideration essentially means compensation in kind such as the following:
Barter, Part Exchange Doing or agreeing to do an act. (a) any payment made or to be made,
7
Supply Under GST, www.taxmann.com, https://www.taxmann.com/bookstore/bookshop/bookfiles/GST
%20(%20CA-Intermediate%20)chapter2.pdf, last visited on 03/04/2019
8 GUIDANCE OF DR. KAMLESH
Section 2(52), The Central Goods and Services Tax Act, 2017
9 KUMAR SHUKLA SIR
Section 2(102), The Central Goods and Services Tax Act, 2017
10
whether in money or otherwise, in respect of, in response to, or for the inducement of, the
supply of goods or services or both11, whether by the recipient or by any other person but shall
not include any subsidy given by the Central Government or a State Government;
2. Meaning of “in respect of, in response to, or for the inducement of

It means there must be a direct link between the supply and the consideration. Inducement
means to gives something to a person so that he will do something else in return. For Example:
A restaurateur offered ‘free’ meals to drivers of buses carrying passengers as an inducement to
bring potential customers to his business premise12. Since the meals were not given to drivers of
empty buses, there is a direct link between the act of bringing passengers to the food outlet and
the provision of the free meals. The consideration here is the free meals provided. For
Example: Donation is not a consideration because there is no supply of goods or services by the
orphanage to the donor in return.
3. Consideration may flow from recipients of supply of from any other person:
When Mr. A has a binding contract with Mr. B to supply hampers to the clients, there is a taxable
supply made by Mr. B to Mr. A since there is a direct link between the supply made and the
consideration given13. (b) the monetary value of any act or forbearance, in respect of, in response
to, or for the inducement of, the supply of goods or services or both, whether by the recipient or
by any other person but shall not include any subsidy given by the Central Government or a
State Government:
Provided that a deposit given in respect of the supply of goods or services or both shall not be
considered as payment made for such supply unless the supplier applies such deposit as
consideration for the said supply14; For example: Mr. Parveen, partner of AB & Associates,
retires from firm. Firm enters into ‘non competence agreement’ with Mr. Parveen for 5 years
against a consideration of ` 5 crore. In this case, forbearance on part of Mr. Parveen i.e. not to
11
12 GUIDANCE OF DR. KAMLESH
Ibid.
13 KUMAR SHUKLA SIR
Ibid.
14
carry on competitive business becomes a taxable supply and thus, liable to GST.
3. ELEMENTS OF SUPPLY
Supply has two important elements: 1. Supply is done for a consideration 2. Supply is done in
course of furtherance of business. If the aforementioned elements are not met with, it is not
considered as a sale.
Examples:(1)Mr. A buys a table for Rs.10,000 for his personal use and sells it off after 10
months of use to a dealer. This is not considered as supply under CGST as this is not done by Mr
A for the furtherance of business. (2) Mrs. B provides free coaching to neighbouring students as
a hobby. This is not considered as supply as this act is not performed for a consideration.
However, as specified in Schedule I of GST Act, certain activities are considered as supply even
if it is made without consideration.
3.1. SUPPLY FOR CONSIDERATION
Consideration has specifically been defined in the CGST Act, 2017. It can be in money or in
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 the recipient or by any other
person. A deposit given in respect of the supply of goods or services or both shall not be
considered as payment made for such supply unless the supplier applies such deposit as
consideration for the said supply.15 Further, when there is barter of goods of services, the same
activity constitutes supply as well as a consideration. When a barber cuts hair in exchange for a
painting, hair cut is a supply of services by the barber. It is a consideration for the painting
received. However, there are exceptions to the requirement of ‘Consideration’ as a pre-condition
for a supply to be called a supply as per GST. As per schedule to CGST Act, 2017, activities as
mentioned below shall be treated as supply even if made without consideration:
1. Permanent transfer or disposal of business assets where input tax credit has been availed on
such assets.
2.SUBMITTED
Supply of goods or UNDER
TO AND services or both between related persons or between distinct persons as
GUIDANCE
specified OF DR. KAMLESH
in section 25, when made in the course or furtherance of business: Provided that gifts
KUMAR SHUKLA SIR
15

not exceeding fifty thousand rupees in value in a financial year by an employer to an employee
shall not be treated as supply of goods or services or both.
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 (b) by an agent to his principal where the agent undertakes to
receive such goods on behalf of the principal.
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 business16.
3.2. SUPPLY IN THE COURSE OF FURTHERANCE OF BUSINESS
GST is essentially a 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. Sale of goods or service even as a vocation is a
supply under GST. Therefore, even if a famous politician paints paintings for charity and sells
the paintings even as a one-time occurrence, the sale would constitute supply. However, there is
one exception to this ‘Course or Furtherance of Business’ rule i.e., import of services for a
consideration.
4. TYPES OF SUPPLY
There are a few supplies which are made together with two or more items. Such supplies are
further classified into Composite Supply and Mixed Supply.17 A composite supply means a
supply made by a taxable person to a recipient comprising two or more supplies of goods or
services or any combination thereof, which are naturally bundled and supplied in conjunction
with each other in the ordinary course of business, one of which is a principal supply. For
instance, a travel ticket from Mumbai to Delhi may include service of food being served on
board, free insurance, and the use of airport lounge. In this case, the transport of passenger,
constitutes the pre-dominant element of the composite supply, and is treated as the principal
supply and all other supplies are ancillary. The GST Law lays down the tax liability on a
GUIDANCE OF DR.and
GST: The Meaning
16 KAMLESH
Scope of Supply, cbec-gst.gov.in, https://cbec-gst.gov.in/pdf/e-version-gst-fliers/eflier-
KUMAR SHUKLA SIR
17
composite or mixed supply in the following manner. 1. Composite Supply comprising two or
more supplies one of which, is a principal supply, shall be treated as supply of such principal
supply. 2. Mixed Supply comprising two or more supplies, shall be treated as supply of that
particular supply which attracts the highest rate of tax18.
A supply comprising of two or more goods/services, which are necessarily supplied in
conjunction with each other as per frequent business practices followed in that area. In other
words, these items cannot be supplied individually. There is a principal supply and a secondary
supply in the whole transaction. In such cases, the tax rate on principal supply will apply on the
entire supply. E.g. Buying a Dry Fruit Gift Box for Diwali. It includes dry fruits, a box and a
wrapper. Box and wrapper cannot be sold individually without the main content which is dry
fruit. This is composite supply19.A supply comprising of two or more goods/services, wherein the
supplies are independent of each other and are not necessarily required to be sold together is
called a mixed supply. The first condition to be met for mixed supply is that ‘it should not be a
composite supply’. In such cases, the tax rate that is higher of the two supplies will be applicable
to the entire supply. E.g Buying a Christmas package consisting of cakes, aerated drinks,
chocolates, Santa caps and other gift items. Each of these items can be sold separately and are
not dependent on each other. This is mixed supply. Import of goods/services with consideration
is considered as supply whether for personal or business use.
5. SCOPE OF SUPPLY
5.1. ACTIVITIES CONSIDERED AS A SUPPLY OF GOODS AS PER SCHEDULE
II OF THE GST ACT
Transfer – Transfer of title of goods
Transfer of business assets:
1. Business assets transferred/disposed of with or without consideration.
2. If the owner ceases to be a taxable person then his business assets will be assumed to be

GUIDANCE OF DR.and
GST: The Meaning
18 KAMLESH
Scope of Supply, cbec-gst.gov.in, https://cbec-gst.gov.in/pdf/e-version-gst-fliers/eflier-
KUMAR SHUKLA SIR
19
supplied to him in course of his business20.
This is not applicable in the following cases:
 Business is transferred to another person.

 Business is carried by a taxable representative.
5.2. ACTIVITIES CONSIDERED AS A SUPPLY OF SERVICES AS PER

SCHEDULE II OF GST ACT
Transfer -Transfer of right in goods without transfer of title.
Land and building –
1. Lease, rent, tenancy, easement, licence to occupy land.

2. Lease or letting out of the building (Building includes commercial/ industrial/residential
complex for business use either wholly or partly).
Transfer of business assets: The owner uses or allows to use business assets for personal use.
Construction of a building/complex intended for sale to a buyer wholly or partly. Temporary
transfer or permitting the use of intellectual property right 21.Renting of immovable property
(Rented residence is exempted from GST) Development of information technology software.
Agreeing to refrain from an act – Non-competition agreements. Transfer of right to use any
goods for a consideration. Any treatment or process which is applied to another person’s goods is
a supply of services.
5.3. ACTIVITIES OR TRANSACTIONS TREATED NEITHER AS THE SALE OF

GOODS NOR SALE OF SERVICES AS PER SCHEDULE III OF GST ACT
Following are the transactions covered under negative list:
1. Services provided by an employee to the employer.

2. Gifts upTOtoAND
SUBMITTED Rs.50,000/-
UNDER in value in a Financial Year, by an employer to an employee
20 KUMAR SHUKLA SIR
21
Ibid.
3. Services of the funeral, burial, crematorium or mortuary including transportation of the

deceased
4. Services by any court or Tribunal.
5. Duties performed by the MP/MLA/MLC/ Members of Local Bodies.
6. Duties performed by any person as a Chairperson or a Member or a Director in a body
established by the Central Government or a State Government or local authority.
7. Duties performed by any person who holds any post in pursuance of the provisions of the
Constitution in that capacity.
8. Sale of Land22
9. Sale of Building (However, If construction of a complex /building intended for sale to a
buyer and part of the consideration is received before completion, then it will be treated
as Supply of Services)
10. Actionable claims, other than lottery, betting and gambling.
6. TIME PLACE AND VALUE OF SUPPLY
Under GST, 3 types of taxes can be charged in the invoice. SGST and CGST in case of an intra-
state transaction and IGST in case of an interstate transaction. But deciding whether a particular
transaction is inter or intrastate is not an easy task. Think about an online training where
customers are sitting in different parts of the world. Say in case, hotel services, where the
receiver may have an office in another state and may be visiting the hotel only temporarily, or
where goods are sold on a train journey passing through different states. To help address some of
these situations, the IGST act lays down certain rules which define whether a transaction is inter
or intrastate. These rules are called the place of supply rules.
6.1. IMPORTANCE
Time of supply means the point in time when goods/services are considered supplied’. When the
seller knows the ‘time’, it helps him identify due date for payment of taxes. Place of supply is
required for determining the right tax to be charged on the invoice, whether IGST or
CGST/SGST will
GUIDANCE OF DR.apply. Value of supply is important because GST is calculated on the value of
KAMLESH
KUMAR SHUKLA SIR
22
the sale. If the value is calculated incorrectly, then the amount of GST charged is also incorrect.
7. TIME OF SUPPLY
Time of supply means the point in time when goods/services are considered supplied’. When the
seller knows the ‘time’, it helps him identify due date for payment of taxes.CGST/SGST or IGST
must be paid at the time of supply. Goods and services have a separate basis to identify their time
of supply. Let’s understand them in detail23.
7.1. TIME OF GOODS
Time of supply of goods is earliest of:
1. Date of issue of invoice
2. Last date on which invoice should have been issued
3. Date of receipt of advance/ payment*.
For example: Mr. X sold goods to Mr. Y worth Rs 1,00,000. The invoice was issued on 15th
January. The payment was received on 31st January. The goods were supplied on 20th
January.GST is not applicable to advances under GST. GST in Advance is payable at the time of
issue of the invoice. Notification No. 66/2017 – Central Tax issued on 15.11.201724Let us
analyze and arrive at the time of supply in this case. Time of supply is earliest of : 1. Date of
issue of invoice = 15th January 2. Last date on which invoice should have been issued = 20th
January Thus the time of supply is 15th January. What will happen if, in the same example an
advance of Rs 50,000 is received by Mr. X on 1st January?The time of supply for the advance of
Rs 50,000 will be 1st January(since the date of receipt of advance is before the invoice is issued).
For the balance Rs 50,000, the time of supply will be 15th January.
7.2. TIME OF SUPPLY OF SERVICES
Time of supply of services is earliest of:
1. Date of issue of invoice
2.SUBMITTED TO AND UNDER

Date of receipt of advance/ payment.
23 KUMAR SHUKLA
Time, Place SIR of Supply, Cleartax.in, https://cleartax.in/s/time-place-and-value-of-supply-in-gst , last
and Value
24
Ibid.
3. Date of provision of services (if invoice is not issued within prescribed period)
Let us understand this using an example: Mr. A provides services worth Rs 20000 to Mr. B on
1st January. The invoice was issued on 20th January and the payment for the same was received
on 1st February.In the present case, we need to 1st check if the invoice was issued within the
prescribed time. The prescribed time is 30 days from the date of supply i.e. 31st January. The
invoice was issued on 20th January25. This means that the invoice was issued within a prescribed
time limit26.The time of supply will be earliest of:
1. Date of issue of invoice = 20th January
2. Date of payment = 1st February. This means that the time of supply of services will be 20th
January.
7.3. TIME OF SUPPLY UNDER REVERSE CHARGE
In case of reverse charge the time of supply for service receiver is earliest of:
1. Date of payment
2. 30 days from date of issue of invoice for goods (60 days for services) w.e.f. 15.11.2017 ‘Date
of Payment’ is not applicable for goods and applies only to services. Notification No. 66/2017 –
Central Tax27.
For example: M/s ABC Pvt. Ltd undertook service of a director Mr. X worth Rs. 50,000 on 15th
January. The invoice was raised on 1st February. M/s ABC Pvt Ltd made the payment on 1st
May. The time of supply, in this case, will be earliest of –
1. Date of payment is1st May
2. 60 days from date of date of invoice is 2nd April. Thus, the time of supply of services is 2nd
April.
8. PLACE OF SUPPLY
It is very important to understand the term ‘place of supply’ for determining the right tax to be
25 GUIDANCE OF DR.
Time, Place and KAMLESH
Value of Supply, Cleartax.in, https://cleartax.in/s/time-place-and-value-of-supply-in-gst , last
KUMAR SHUKLA
visited on 02/04/2019 SIR
26
Ibid.
27
2
charged on the invoice. For example:
Location of Service Receiver Place of supply Nature of Supply GST Applicable
Maharashtra Maharashtra Intra-state CGST + SGST
Maharashtra Kerala Inter-state IGST
8.1. PLACE OF SUPPLY OF GOODS
Usually, in case of goods, the place of supply is where the goods are delivered. So, the place of
supply of goods is the place where the ownership of goods changes. What if there is no
movement of goods. In this case, the place of supply is the location of goods at the time of
delivery to the recipient. For example: In case of sales in a supermarket, the place of supply is
the supermarket itself. Place of supply in cases where goods that are assembled and installed will
be the location where the installation is done28. For example, A supplier located in Kolkata
supplies machinery to the recipient in Delhi. The machinery is installed in the factory of the
recipient in Kanpur. In this case, the place of supply of machinery will be Kanpur.
8.2. PLACE OF SUPPLY OF SERVICES
Generally, the place of supply of services is the location of the service recipient. In cases where
the services are provided to an unregistered dealer and their location is not available the location
of service provider will be the place of provision of service. Special provisions have been made
to determine the place of supply for the following services: 1. Services related to immovable
property 2. Restaurant services 3. Admission to events 4. Transportation of goods and passengers
5. Telecom services 6. Banking, Financial and Insurance services29.
In case of services related to immovable property, the location of the property is the place of
provision of services.Example 1: Mr. Anil from Delhi provides interior designing services to Mr.
28 GUIDANCE OF DR.
Time, Place and KAMLESH
Value of Supply, Cleartax.in, https://cleartax.in/s/time-place-and-value-of-supply-in-gst , last
KUMAR SHUKLA
visited on 02/04/2019 SIR
29
Time, Place and Value of Supply, Cleartax.in, https://cleartax.in/s/time-place-and-value-of-supply-in-gst , last
Ajay(Mumbai). The property is located in Ooty(Tamil Nadu). In this case, place of supply will
be the location of the immovable property i.e. Ooty, Tamil Nadu. Example 2: A registered
taxpayer offers passenger transport services from Bangalore to Hampi. The passengers do not
have GST registration. What will be the place of supply in this case? The place of supply is the
place from where the departure takes place i.e. Bangalore in this case.
9. VALUE OF SUPPLY OF GOODS AND SERVICES
Value of supply means the money that a seller would want to collect the goods and services
supplied. The amount collected by the seller from the buyer is the value of supply. But where
parties are related and a reasonable value may not be charged, or transaction may take place as a
barter or exchange; the GST law prescribes that the value on which GST is charged must be its
‘transactional value’30. This is the value at which unrelated parties would transact in the normal
course of business. It makes sure GST is charged and collected properly, even though the full
value may not have been paid.
10. TAXABLE SUPPLY, SUPPLY BY A TAXABLE PERSON, SUPPLY IN A

TAXABLE TERRITORY
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.31 A supply to attract GST should be made by a taxable person.
Hence, a supply between two non-taxable persons does not constitute supply under GST. A
“taxable person” is a person who is registered or liable to be registered under section 22 or
section 24. Hence, even an unregistered person who is liable to be registered is a taxable person.
Similarly, a person not liable to be registered but has taken voluntary registration and got himself
registered is also a taxable person. It should be noted that GST in India is State-centric. Hence, a
person making supplies from different States needs to take separate registration in each State.
Further, the person may take more than one registration within a State if the person has multiple
business verticals. A person who has obtained or is required to obtain more than one registration,
whether in one
GUIDANCE OFState or Union territory or more than one State or Union territory shall, in respect
DR. KAMLESH
KUMAR SHUKLA SIR
Ibid.
30

31

of each such registration, be treated as distinct persons for the purposes of GST. Hence, a supply
between these entities constitutes supply under GST.32 For a supply to attract GST, the place of
supply should be in India except for 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. 33 The
location of the supplier and the place of supply determines whether a supply is treated as an Intra
State supply or an Inter State supply. Determination of the nature of supply is essential to
ascertain whether integrated tax is to be paid or Central plus State tax are to be paid. Inter- State
supply of goods means a supply of goods where the location of the supplier and place of supply
are in different States or Union territories. Intra State supply of goods means supply of goods
where the location of the supplier and the place of supply are in the same State or Union
territory. Imports, Supplies from and to SEZs are treated as deemed Inter-State supplies.
11. CONCLUSION
The taxable event in GST is supply of goods or services or both. Various taxable events like
manufacture, sale, rendering of service, purchase, entry into a territory of state etc. have been
done away with in favor of just one event i.e. supply. The constitution defines “Goods and
Services Tax” as any tax on supply of goods, or services or both, except for taxes on the supply
of the alcoholic liquor for human consumption. The Central and State governments will have
simultaneous powers to levy the GST on Intra-State supply. However, the Parliament alone shall
have exclusive power to make laws with respect to levy of Goods and Services Tax on Inter-
State supply.

KUMAR SHUKLA SIR
32
Ibid.
33
Ibid.

Project Explores Indirect Tax Concept of Supply Under GST

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PROJECT OF LAW OF TAXATION-II (INDIRECT TAXES)

SUBMITTED TO AND UNDER

SUBMITTED TO AND UNDER

SUBMITTED TO AND UNDER

EXPLORATION AND ASSESSMENT OF THE CONCEPT OF SUPPLY

services such as 1) sale, 2) transfer, 3) barter, 4) exchange, 5) license, 6) rental, 7) lease or

Meaning of various Terms:

1. Consideration can be in monetary or non-monetary form or partly in monetary form and

2. Meaning of “in respect of, in response to, or for the inducement of

3.1. SUPPLY FOR CONSIDERATION

meaning-scopeofsupply14062017.pdf , last visited on 02/04/2019

3.2. SUPPLY IN THE COURSE OF FURTHERANCE OF BUSINESS

Transfer – Transfer of title of goods

Transfer of business assets:

1. Business assets transferred/disposed of with or without consideration.

SUBMITTED TO AND UNDER

supplied to him in course of his business20.

This is not applicable in the following cases:

 Business is transferred to another person.

5.2. ACTIVITIES CONSIDERED AS A SUPPLY OF SERVICES AS PER

Transfer -Transfer of right in goods without transfer of title.

Land and building –

1. Lease, rent, tenancy, easement, licence to occupy land.

5.3. ACTIVITIES OR TRANSACTIONS TREATED NEITHER AS THE SALE OF

Following are the transactions covered under negative list:

1. Services provided by an employee to the employer.

3. Services of the funeral, burial, crematorium or mortuary including transportation of the

6. TIME PLACE AND VALUE OF SUPPLY

7.1. TIME OF GOODS

Time of supply of goods is earliest of:

1. Date of issue of invoice

2. Last date on which invoice should have been issued

3. Date of receipt of advance/ payment*.

7.2. TIME OF SUPPLY OF SERVICES

Time of supply of services is earliest of:

1. Date of issue of invoice

2.SUBMITTED TO AND UNDER

1. Date of issue of invoice = 20th January

7.3. TIME OF SUPPLY UNDER REVERSE CHARGE

1. Date of payment is1st May

charged on the invoice. For example:

Location of Service Receiver Place of supply Nature of Supply GST Applicable

Maharashtra Maharashtra Intra-state CGST + SGST

Maharashtra Kerala Inter-state IGST

8.1. PLACE OF SUPPLY OF GOODS

8.2. PLACE OF SUPPLY OF SERVICES

9. VALUE OF SUPPLY OF GOODS AND SERVICES

10. TAXABLE SUPPLY, SUPPLY BY A TAXABLE PERSON, SUPPLY IN A

GST: The Meaning and Scope of Supply, cbec-gst.gov.in, https://cbec-gst.gov.in/pdf/e-version-gst-fliers/eflier-

meaning-scopeofsupply14062017.pdf , last visited on 02/04/2019

SUBMITTED TO AND UNDER

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