TAXABLE EVENT UNDER GST
By: – CA Chandan Jha
Goods and Services Tax – GST
Dated:- 24-8-2016
Taxable Event under GST.
* What is Taxable Event.?
(a) Taxable:- Liable to be taxed; subject to tax.
(b )Event: – A thing that happens or takes place, especially one of importance.
(Source :- Oxford Dictionary)
Taxable event: – A taxable event is any event or occurrence that results in a tax liability. Normally taxable event means occurrence creates or attracts the liability to be fixed.
Tax can be imposed only on taxable event.
Taxable event under GST.
Tax will be levied when supply of Goods and/or services. Time of supply of goods and/or services is more important under GST.
Hence the word “supply” is more important. Consideration is not mandatory for supply.
Meaning of Supply.
(a) Supply :- A stock or amount of something supplied or available for use.
(b) Sale :- The exchange of a commodity for money; the action of selling something.
(Source: – Oxford D
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eed commission or brokerage, either supplies or receives any goods and/or services on behalf of any principal, the transaction between such principal and agent shall be deemed to be a supply.
(3) Subject to sub-section (2), the Central or a State Government may, upon recommendation of the Council, specify, 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.
(4) Notwithstanding anything contained in sub-section (1), 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 a supply of the said service by the said aggregator.
Definition of Supply is “inclusive”. Hence any supply of goods or services would get cover, even if not specified in this section.
As per above discussion Supply does not need Considerat
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be made without a consideration is 'Supply'
As per schedule I of model of GST 2016. As follows.
* Permanent transfer/ disposal of business Assets :- Sale/ discard or otherwise without consideration.
* Temporary application of business assets to a private or non-business use :- Such as Business car, plant, building use for personal, partner, director, etc.
* Services put to a private or non-business use :- such as telephone, other services provided to proprietor, partner, director, etc.
* Assets retained after deregistration: – if taxable person de-registered, he will be liable to pay GST. But if transfer of business as a going concern, then it will not be supply. As per schedule II
* Supply of goods and/or services by a taxable person to another taxable or non-taxable person in the course or furtherance of business: – this will be cover like sample, gift, etc.
Provided that the supply of goods by a registered taxable person to a job worker in term of section 43A shall not
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or under the directions of the person carrying on the business 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 by the person.
(2) 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 the business, whether or not for a consideration, the usage or making available of such goods is a supply of services.
(3) Where any goods, forming part of the business assets of a taxable person, are sold by any other person who has the power to do so to recover any debt owed by the taxable person, the goods shall be deemed to be supplied by the taxable person in the course or furtherance of his business.
(4) Where any person ceases to be a taxable person, any goods forming part of the assets of any business carried on by him shall be
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non-requirement of such certificate from such authority, from any of the
Following, namely:-
(i) An architect registered with the Council of Architecture constituted under the Architects Act, 1972; or
(ii) A chartered engineer registered with the Institution of Engineers (India); or
(iii) A licensed surveyor of the respective local body of the city or town or village or development or planning authority;
(2) The expression "construction" includes additions, alterations, replacements or remodeling of any existing civil structure;
(c) Temporary transfer or permitting the use or enjoyment of any intellectual property right;
(d) Development, design, programming, customisation, adaptation, up gradation, enhancement, implementation of information technology software;
(e) Agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act;
(f) works contract including transfer of property in goods (whether as goods or in some oth
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