Goods and Services Tax – GST – By: – Shripada Hegde – Dated:- 1-4-2017 – Clause 29A of Article 366 of the Constitution of India, inserted by 46th amendment to the Constitution gains very much importance as the same lays down the concept of deemed sale and enables the states to tax certain transactions. This was important as taxes were levied either on Sale of Goods or on Provision of Services . However in the GST Regime tax is levied on Supply of Goods and Services and the supply need not necessarily be sale. In the light of the above it is important to know how GST Regime takes care of the controversies or confusions which lead to the insertion of Clause 29A. This article tries to gather the information relating to the same. Issues Covere
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stion which merits consideration is Is there a Supply? . If a transaction is supply it is very much taxable. Supply is defined to include all form of supplies for consideration. Hence, if a person supplies commodities for a consideration, whether at his free consent or under statutory compulsion, it is taxable. Transfer of property in goods involved in the execution of works contract Under the GST regime works contract is a supply of service as per sub-clause (f) of clause 5 of Schedule II. The said entry reads as follows:- (f) works contract including transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract; Hence, it is clear that the value of works contract including the value o
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Clause 29A transfer of right to use transactions were deemed to be sale. However, under the GST Regime the same is specified as service. Supply of goods by an unincorporated association or body of persons to its members Again it is Schedule II which answers our question. Clause 6 to the said schedule specifies that the supply of goods by an unincorporated association or body of persons to its members for a consideration should be considered as Supply of Goods . Further, we should also note that Supply, as per Section 3, need not be done by one person to another. Only condition is that it should be made in the course or furtherance of business. In the earlier law, in order to become sale there was requirement of two persons. Supply of food o
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