Supply of Goods and Services in GST Law
By: – Sanjeev Singhal
Goods and Services Tax – GST
Dated:- 12-1-2017
Supply is wider term used in GST law as the GST is based on Supply only. Now the question arises what is supply. Supply is transfer of goods and services on which GST will be imposed. Supply has been mainly defined in Section 3 of GST law subject to Schedule- I to IV. Therefore to understand supply of goods and services it is more important to under stand the Schedule- I to IV also whether particular supply is goods or service and there are situations supply shall not constitute as supply and out of the ambit of GST.
Supply has been defined in Section 2[95] as follows;
“Supply” shall have the meaning as assigned to it in section 3.
Scope of Supply [Section 3]
1. Supply includes
A] all forms of supply and /or services such as
* Sale
* Transfer
* Barter
* Exchange
* License
* Rental
* Lease or disposal
Made or agreed to be made for consideratio
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per section 10 in the course or furtherance of business
* supply of goods from principal to agent on behalf of the principal or from agent to principal where agent receive the goods on behalf of principal .
* importation of service by taxable person from related person or his establishment outside India in the course or furtherance of business.
Supply shall be treated as supply of Goods or Services [ Schedule-II ]
* Transfer
* Transfer of title in goods is supply of goods
* Transfer of goods or right in goods or of undivided share in goods with out the transfer of title is supply of service
* Transfer of title in goods under agreement that the property will pass at future date on payment of full consideration shall be supply of goods
Land and Building
* Lease , tenancy, easement, license to occupy land is supply of services
* Lease, letting out of building whether industrial, commercial or residential complex for business or commerce is supply of services.
Treatme
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e consideration is received after issuance of completion certificate from the competent authority or before its occupation which ever is earlier.
* Competent authority means Government or any authority authorized to issue completion certificate namely architect registered under Architect Act , Chartered Engineer registered with Institute of Engineers, License Surveyor of the local body of city or town.
* Construction include here addition, alteration, replacement, remodeling of any existing civil structure
* Temporary transfer or permitting the use of or enjoyment of any intellectual property right.
* Development, design, programming, customization, adoption, upgradation, enhancement, implementation of information technology software.
* Refrain from act, tolerate an act or situation or to do an act.
* Work contract including transfer of property in goods involve in the execution of work contract.
* Transfer of right to use any goods for any purpose for specified period o
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e Government or local authority.
Service by foreign diplomatic mission located in India.
Service of funeral, burial, crematorium or mortuary including transportation of the deceased.
Activities or transaction undertaken by Central Government , State Government or any Local Authority which shall be treated as neither supply of goods nor supply of services………… [Schedule -IV]
* Services provided by Government or Local authority to another Govt. or Local Authority excluding the following.
* Service by department of post by way of speed post, express parcel post, life insurance and agency services.
* Service in relation to aircraft or vessel
* Transport of goods or passenger
Service provided by Govt. or Local authority to individual for discharge of its statutory power or function
* Issuance of passport , Visa, driving license, birth certificate or death certificate
* Assignment of right to use natural resources to individual farmer for the pur
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ided that exemption shall applicable to service tax payable on one time charges upfront or in installment for assignment of right to use such resources.
Service by Govt. on deputing officer after office hour or on holidays for inspection and container stuffing or such other duties for import and export of cargo on payment of Merchant Overtime Charges.
Service provided by Govt. or Local Authority by way of
* Registration under any law
* Testing , calibration, safety check or certificate for protection or safety of worker , consumer or public at large, required under any law
Disclaimer :
The contents of this article are solely for information and knowledge and does not constitute any professional advice or recommendation. Author does not accept any liability for any loss or damage of any kind arising out of this information set out in the article and any action taken based thereon.
About the Author:
Author is practicing chartered accountant in Gurgaon and having specializa
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