CHAPTER-SUPPLY UNDER GST

INTRODUCTION

A taxable event is any

transaction or occurrence
that results in a tax
consequence, under GST
regime taxable event is
Supply.

Sec (7) Meaning and Scope of Supply

Sch-I Activities, without consideration, still supply
Sch-Il Supply- either of Goods or Services
Sch-Ill Activities - neither supply of goods nor supply of services

Sec (8) Composite and Mixed Supply

Important Circulars and Clarifications

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Meaning & Scope of Supply [Sec (7)]

Supply

Sec 7(1) Includes Sec7 (1A) Sec7 (2) Excludes

(a) (aa) Any Person (c) Activities to be (a) Activities neither

All forms of Club/Ass Activities made
treated as either supply of goods nor
(X Indi)- or agreed to be
supply of
goods/services- made without supply of goods or supply of services
G/S/B such as
Member for consideration supply of services [Sch-llI]
STBELRLD
consideration [Sch-I]
[Sch-ll] (b)(1)
(Note-1) made
*243G-Panchayat
or agreed to
*243W-Municipality
be made for a (b) Importation-
services for Sec7 (3) activities
Consideration
consideration (b)(2)
in the Course/ whether or not in
Alcohol Liquor
Furtherance the course or
furtherance of Govt- notify -SOS/SOG Licence
of business.
business.

Schedule I- Activities without consideration, still Supply [4 activities]

(1) Permanent Business Asset ITC availed on such asset

Deemed Supply
Transfer/
Disposal of Business Permanently

Asset transferred/disposed

(2) Supply between RP/DP 1 RP/DP 2

Deemed
Supply

Supply in the course or

Related
furtherance of business
Person/Distinct
Employer Employee
Person Gifts up to Rs 50K
Supply
Not

per employee per

(Note-2 & 3)
annum

Note-1 STBELRLD Sale, transfer, barter, exchange, lease, rental, license and disposal.
Note-2 Related Person SCOPE FS: Share/stocks >= 25% in both, Control, Officer/Directors of
each other’s business, Partners in business, Employer and Employee, Family, Sole Agent.
spouse, children, parents, grandparents, brothers and sisters dependent. SC, PGBS D
Note-3 Distinct Person
(1) Same state, separate registration (under same PAN)
(2) One state registration, another state registration (under same PAN)
(3) One state registration, another state not registered

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(3) Supply between Principal and Agent

Principal Agent Third person Agent

Deemed
Supply

Supplies Goods Supplies Goods on Agent receives goods

Supplies Goods

Deemed
behalf of principal on behalf of principal

Supply
and issues invoice in and receives invoice in
his own name his own name

Third person Principal

(4) Importation of Services

Person out of India Supplies Services Person in India

Deemed
In course or

Supply
Related Person/ furtherance of
Own establishment business

Schedule Il [Sec 7(1A)] Activities to be treated as supply of goods/services

Sr. No. Activity Type SOG/SOS

(1) Transfer (a) Title In goods Goods

(b) Rights in goods /undivided share Service
(c) Title in future (Hire purchase) Goods
(2) Land and Building (a) Lease, tenancy, easement to Services
occupy land
(b) Lease, letting out of building Services
(3) Treatment or Process Applied on another person’s goods Services
(4) Transfer of Biz Asset (a) Permanent Transfer/disposal Goods
(b) Temporary Transfer -put to use, Service
made available for non-business use
(c) At the time of closure of business Goods
(5) Others (a) Renting of other Immovable Service
Property (Example- Tower) Service
(b) Construction of complex, building Service
etc (Consideration/ part received
before Completion Certificate /First
Occupancy -whichever is earlier)
(c) Temporary transfer / use of Service
Intellectual Property Right
(d) Development, Up gradation etc. Service
of IT Software

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(e) Agreeing to the obligation to Service

Refrain/tolerate/to do an act for
consideration
(f) Transfer of right to use goods Service
(6) Composite supplies (a) Works Contract Service
(Immovable Property)
(b) Restaurant/Catering Service

Schedule [IlI Sec 7(2)] Activities neither supply of goods nor supply of services

(a) Following Supplies are neither supply of goods nor supply of services. HALF-CNG-BE
(1) Services by Employee to the employer, in relation to employment
(2) Services by Court/ Tribunal
(3) Services by Government Officials (MP, MLA, MLC etc,)
(4) Services of Funeral, Burial & Mortuary Services (Including Transportation)
(5) Sale of Land and Completed Building sale
(6) Actionable claims, other than lottery, betting and gambling
(7) Bond to Bond Transfer
(8) Supply of goods from one Non-taxable-territory to another non-taxable territory without
bring it to India
(9) High sea sale May-23 for 5 marks

(b)
(1) Activities /transaction (notified) taken by the CG/SG/Local Authority under
243G –Panchayat and 243W-Municipality for public
(2) Alcohol Liquor License against license fee or application fees

Sec (8) Composite and Mixed Supply
(a) Composite Supply
*Consist of 2 or more taxable supplies
* Naturally Bundled
* In conjunction with each other (supplied
together in ordinary course)
*One of which is principal supply
*Tax Rate = Rate of principal supply.
Ex: Charger with Mobile Phone,
stay & food in a hotel.

(b) Mixed Supply *Consist of 2 or more individual supplies

* Not naturally bundled
*Can be supplied independently, still supplied
together (supplied together for a single price)
* Not a composite supply
*Tax Rate = Rate applicable to the supply that
attracts Highest rate.
Ex: Chocolate, Cookies and Teddy combo, pen with
notebook

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Circular-

(1) Interstate movement of conveyance/cranes/rigs between distinct person-

 On conveyance- X GST (Neither supply of goods, nor supply of services)

 On repair and maintenance- √ GST

 On movement of goods for further Supply- √ GST

(2) T/f of tenancy rights against tenancy premium (Pagadi)- supply of service
Tenancy Premium charged by outgoing tenant from incoming tenant for transferring
the right to occupy- Supply of Service.
Note:

 If granted for residential house-Exempted.

 Surrendering by outgoing tenant against consideration-Taxable

(3) Printing Contracts-

 Book Xerox- Supply of Service

 Pamphlet, Napkin, Paper Bag- Supply of Goods

(4) Bus Body Building- Supply of Service
(5) Rethreading of tyres- Supply of Service
(6) Service of display of name of donor- Donation to Temple/Charitable Institution does not
constitute supply.

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