GST – Concept of Supply
By: – CA Akash Phophalia
Goods and Services Tax – GST
Dated:- 11-7-2016
Introduction :
The most awaited GST is all about supply as it merger sale and service in the term supply. The learned author aims at enlightening readers about the concept and importance of supply.
Meaning and scope of supply
The law provides for the definition and scope of apply. In simple terms, supply includes all the following –
* All forms of supply of goods and/or services such as
* sale,
* transfer,
* barter,
* exchange,
* license,
* rental,
* lease or
* disposal made or agreed to be made for a consideration by a person in the course or furtherance of business
* Importation of service, whether or not for a consideration and whether or not in the course or furtherance of business,
* A supply specified in schedule I, made or agreed to be made without a consideration.
* Schedule I – All the following matters will be considered as supply without
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in goods will pass at a future date upon payment of full consideration as agreed, is a supply of goods.
* Land and Building
* Lease, tenancy, easement, license to occupy land is a supply of services.
* Lease or letting out of the building including a commercial, industrial or residential complex for business or commerce, either wholly or partly, is a supply of services.
* Treatment or process
* Treatment or process which is being applied to another person's goods is a supply of services.
* Transfer of business assets
* Goods forming part of the assets of a business when transferred or disposed of so as no longer to form part of those assets, whether or not for a consideration, such transfer or disposal is a supply of goods.
* Where, by or under the direction of a person carrying on a business, goods held or used for the purposes of the business are put to any private use or are used, or made available to any person for use, for any purpose other than a purpose of th
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ivil structure or a part thereof, including a complex or building intended for a sale to a buyer, wholly or partly except where the entire consideration has been received after issuance of completion certificate, where required, by the competent authority or before its first occupation, whichever is earlier.
* Here, the expression "construction" includes additions, alterations, replacements or remodeling of any existing civil structure;
* Temporary transfer or permitting the use or enjoyment of any intellectual property right;
* Development, design, programming, customization, adaption, up gradation, enhancement, implementation of information technology software;
* Agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act;
* Works contract including transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract;
* Transfer of the right to use any goods for any purp
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, by notification, the transactions that are to be treated as-
(i) a supply of goods and not as a supply of services; or
(ii) a supply of services and not as a supply of goods; or
(iii) neither a supply of goods nor a supply of services.
Branded Supply
The supply of any branded service by an aggregator, as defined in section 43B, under a brand name or trade name owned by him shall be deemed to be supply of the said service by the said aggregator. Here, aggregator means a person, who owns and manages an electronic platform, and by means of the application and a communication device, enables a potential customer to connect with the persons providing service of a particular kinds under the brand name or trade name of the said aggregator.
Conclusion
Thus, GST act had covered almost all sorts of services as existingly defined and all sorts of manufacturing and trading activity in the ambit of supply considering different type and nature of transactions.
Scholarly articles for kno
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