Supply Under GST

DIRECT AND
INDIRECT TAXES
IMPACT OF
GST
INCIDENCE OF TAX – Taxable Event
• Determines the point at which Central Excise Duty Manufacturing

tax should be levied and the
reason of levying the tax CST
Inter State sale of
goods
TAXABLE EVENT in
• Determines the occurrence of a Previous Indirect VAT
Intra State sale of
goods
particular event because of tax Regime
which tax is levied on the event Customs Duty
Imports into or
Exports from India
Provision of Services in
• Taxable event is the event on the Service Tax
India
happening of which tax is levied
Happening of taxable
Tax is levied Tax becomes payable
event
TAXABLE EVENT in GST = Supply of Goods or Services or both
Supply of both goods

Supply of Goods Supply of Services
and services
GOODS OR SERVICES UNDER GST
Section 2(52): “goods” means every kind of movable property
other than money and securities but includes actionable claim,
growing crops, grass and things attached to or forming part of Section 2(102): “services” means anything
the land which are agreed to be severed before supply or under other than goods, money and securities but
a contract of supply. includes activities relating to the use of money
or its conversion by cash or by any other mode,
from one form, currency or denomination, to
→ Goods must be movable goods
another form, currency or denomination for
→ Intangibles are goods like sale of copyrights, trademarks etc.
which a separate consideration is charged.
→ No actionable claims other than lottery, gambling and betting
→ Securities are NOT considered good or service
→ Supply of money is neither good nor services → Economic activity
→ Interest, dividends, loans borrowings NOT taxable under GST → Value addition
→ Refrain from act or Tolerating an Act is a supply of service → Intangible
→ Works Contract service – transfer of goods involved → Instantly perishable
SUPPLY UNDER GST (u/s 7)
Supply has TWO important

elements:
 Supply is done for a

consideration
 Supply is done in course

of furtherance of
business
CHARACTERISTICS OF
SUPPLY
1) Supply can be of goods or services or both
SUPPLY of both Goods and Services
Composite supply Mixed supply

COMPOSITE SUPPLIES
[Sec 2(30) of CGST Act]
Composite supply means a supply made by a taxable person to a recipient

 consisting of two or more taxable supplies of goods or services or both, or any combination
thereof,
 which are naturally bundled and supplied in conjunction with each other in the ordinary course of
business,
 one of which is a principal supply.
 How to determine the tax liability? A composite supply Principal supply = Supply of
comprising of two or more supplies, one of which is a principal goods/services which constitute the
supply, shall be treated as a supply of such principal supply predominant element of a
composite supply and to which all
other services are ancillary to it.
MIXED SUPPLIES
[Sec 2(74) of CGST Act]
Mixed supply means:

 two or more individual supplies of goods or services, or any combination thereof, made in
conjunction with each other by a taxable person
 for a single price where such supply does not constitute a composite supply.
o A supply can be a mixed supply only if it is NOT a composite supply – Each supply in the mixed
supply is not dependent on each other and can be supplied independently.
 How to determine the tax liability? A mixed supply comprising of two or more supplies shall be treated
as supply of that particular supply that attracts highest rate of tax.
2) Supply must be for consideration
3) Supply must be for furtherance for business
4) Supply must be made in the Taxable Territory
5) Supply must be made by a taxable person
6) Supply must be a taxable supply
SCOPE OF
SUPPLY
INCLUSIONS IN EXCLUSIONS
SUPPLY FROM SUPPLY
Negative List of
Taxable Supplies
Services
Sec.7(1)(b) Sec.7(1)(c) +
Sec.7(1)(a) Sec.7(1)(d) + Sec.7(2) + Schedule Sec.7(2)
Importation of Schedule-I
Supply for Schedule-II III Activities Activities
service for Supply
consideration Deemed to be specified in undertaken by
consideration without
supply schedule III Government
consideration
Transactions covered under Deemed
Supply
Land and Treatment or Transfer of Supply of Composite

Transfer Supply of goods
Building Process Business Assets Services Supply
Transfer of Title of Lease, Tenancy,

Goods Easement, license
Transfer of Right in Leasing or Letting

Goods without out Building
transferring title
Transfer of title in
future
THANK YOU

Supply Under GST

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Supply Under GST

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DIRECT AND

• Determines the point at which Central Excise Duty Manufacturing

TAXABLE EVENT in GST = Supply of Goods or Services or both

Supply of both goods

Supply has TWO important

 Supply is done for a

 Supply is done in course

SUPPLY of both Goods and Services

Composite supply Mixed supply

Composite supply means a supply made by a taxable person to a recipient

Mixed supply means:

Land and Treatment or Transfer of Supply of Composite

Transfer of Title of Lease, Tenancy,

Transfer of Right in Leasing or Letting

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