Goods and Services Tax

When does the liability to pay GST arise in respect of supply of services?
Question 6
Bill
Time of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 6. When does the liability to pay GST arise in respect of supply of services?
Ans. Unlike goods, in the case of services, the time of supply is determined by the fact whether the invoice for supply of services has been issued within the prescribed period or beyond such prescribed period.
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Where it is not possible to determine the time of supply in terms of sub-section 2, 3, 5 or 6 of Section 12 or that of Section 13 of MGL, how will time of supply be determined?
Question 5
Bill
Time of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 5. Where it is not possible to determine the time of supply in terms of sub-section 2, 3, 5 or 6 of Section 12 or that of Section 13 of MGL, how will time of supply be determined?
Ans. There is a residual entry in Sectio

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What is time of supply of goods sent on approval basis?
Question 4
Bill
Time of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 4. What is time of supply of goods sent on approval basis?
Ans. In case of supply on approval basis, the time of supply shall be the time at which it is known whether a supply will take place or six months from the date of supply, whichever is earlier.
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What is time of supply of continuous supply of goods?
Question 3
Bill
Time of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 3. What is time of supply of continuous supply of goods?
Ans. The time of supply of continuous supply of goods is;
a) where successive statements of accounts or successive payments are involved, the date of expiry of the period to which such successive statements of accounts or successive payments relate.
b) where there are no successive

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When does the liability to charge GST arise in respect of supply of goods?
Question 2
Bill
Time of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 2. When does the liability to charge GST arise in respect of supply of goods?
Ans. Section 12 of the MGL provides for time of supply of goods. The time of supply of goods shall be the earliest of the following namely,
(i) the date on which the goods are removed by the supplier, where the supply of goods require removal

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What is time of supply?
Question 1
Bill
Time of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 1. What is time of supply?
Ans. The time of supply fixes the point when t

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Whether goods supplied on hire purchase basis will be treated as supply of goods or supply of services? Why?
Question 16
Bill
Meaning and Scope of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 16. Whether goods supplied on hire purchase basis will be treated as supply of goods or supply of services? Why?
Ans. Supply of goods on hire purchase shall be treated as supply of goods as there is transfer of title, albeit at a future date.
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Whether Works contracts and Catering services will be treated as supply of goods or supply of services? Why?
Question 15
Bill
Meaning and Scope of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 15. Whether Works contracts and Catering services will be treated as supply of goods or supply of services? Why?
Ans. Works contract and catering services shall be treated as supply of service as specified in Schedule-II of MGL.
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Whether transfer of right to use goods will be treated as supply of goods or supply of service? Why?
Question 14
Bill
Meaning and Scope of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 14. Whether transfer of right to use goods will be treated as supply of goods or supply of service? Why?
Ans. Transfer of right to use goods shall be treated as supply of service because there is no transfer of title in such supplies. Such transactions are specifically treated as s

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What are inter-state supplies and intra-state supplies?
Question 13
Bill
Meaning and Scope of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 13. What are inter-state supplies and intra-state supplies?
Ans. Inter-state and intra-state supplies have specifically been defined in Section 3 & 3A of IGST Act respectively. Broadly, where the location of the supplier and the place of supply are in same state it will be intra-state and where it is in different states it wi

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Whether provision of service or goods by a club or association or society to its members will be treated as supply or not?
Question 12
Bill
Meaning and Scope of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 12. Whether provision of service or goods by a club or association or society to its members will be treated as supply or not?
Ans. Yes. Provision of facilities by a club, association, society or any such body to its members shall be treated as supply. This is

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A dealer of air-conditioners transfers an air conditioner from his stock in trade, for personal use at his residence. Will the transaction constitute a supply?
Question 11
Bill
Meaning and Scope of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 11. A dealer of air-conditioners transfers an air conditioner from his stock in trade, for personal use at his residence. Will the transaction constitute a supply?
Ans Yes. As per Schedule-I (1) business assets put to a pri

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An individual buys a car for personal use and after a year sells it to a car dealer. Will the transaction be a supply in terms of MGL? Give reasons for the answer.
Question 10
Bill
Meaning and Scope of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 10. An individual buys a car for personal use and after a year sells it to a car dealer. Will the transaction be a supply in terms of MGL? Give reasons for the answer.
Ans. No, because supply is not made by the individu

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What do you mean by “supply made in the course or furtherance of business”?
Question 9
Bill
Meaning and Scope of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 9. What do you mean by “supply made in the course or furtherance of business”?
Ans. No definition or test as to whether the activity is in the course or furtherance of business has been specified under the MGL. However, the following business test is normally applied to arrive at a conclusion whether a

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Whether transfer of title and/or possession is necessary for a transaction to constitute supply of goods?
Question 8
Bill
Meaning and Scope of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 8. Whether transfer of title and/or possession is necessary for a transaction to constitute supply of goods?
Ans. Title as well as possession both have to be transferred for a transaction to be considered as a supply of goods. In case title is not transferred, the transaction w

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Are self-supplies taxable under GST?
Question 7
Bill
Meaning and Scope of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 7. Are self-supplies taxable under GST?
Ans. Inter-state self-supplies such as stock transfers will be taxable as a taxable person has to take state wise registration in terms of Schedule 1(5). Such transactions have been made taxable even if there is no consideration. However, intra-state self-supplies are not taxable.
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Importation of Goods is conspicuous by its absence in Section 3. Why?
Question 6
Bill
Meaning and Scope of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 6. Importation of Goods is conspicuous by its absence in Section 3. Why?
Ans. Importation of goods is dealt separately under the Customs Act, 1962, wherein IGST shall be levied as additional duty of customs in addition to basic customs duty.
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Can a transaction in which any one or more of the above criteria is not fulfilled, be still considered as supply under GST?
Question 5
Bill
Meaning and Scope of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 5. Can a transaction in which any one or more of the above criteria is not fulfilled, be still considered as supply under GST?
Ans. Yes. Under certain circumstances such as importation of service (Section 3(1) (b)) or supplies made without consideration, speci

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What are the necessary elements that constitute supply under MGL?
Question 4
Bill
Meaning and Scope of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 4. What are the necessary elements that constitute supply under MGL?
Ans. In order to constitute a 'supply', the following elements are required to be satisfied, i.e.-
(i) supply of goods and / or services;
(ii) supply is for a consideration;
(iii) supply is made in the course or furtherance of business;
(iv)

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What is a taxable supply?
Question 3
Bill
Meaning and Scope of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 3. What is a taxable supply?
Ans. A 'taxable supply' means

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What is the meaning of ‘Supply’?
Question 2
Bill
Meaning and Scope of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 2. What is the meaning of 'Supply'?
Ans. The term 'supply' is wide in its import and includes 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. It also includes import of se

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What is the taxable event under GST?
Question 1
Bill
Meaning and Scope of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 1. What is the taxable event under GST?
Ans. The taxable event under GST shall be the supply of goods and / or services made for consideration in the course or furtherance of business. The taxable events under the existing indirect tax laws such as manufacture, sale, or provision of services shall stand subsumed in the taxable event known as 'su

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Can the registration certificate be downloaded from the GSTN portal?
Question 43
Bill
Registration
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 43. Can the registration certi

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Will there be any communication related to the application disposal?
Question 42
Bill
Registration
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 42. Will there be any communication related to the application disposal?
Ans. The applicant shall be informed of the fact of grant or rejection of his registration application through an e-mail and SMS by the GST common portal. Jurisdictional details would be intimated to the applicant at this stage.
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What is the process of refusal of registration?
Question 41
Bill
Registration
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 41. What is the process of refusal of registration?
Ans. In case registration is refused, the applicant will be informed about the reasons for such refusal through a speaking order. The applicant shall have the right to appeal against the decision of the Authority. As per sub-section (10) of section 19 of MGL, any rejection of application for regis

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