Meaning of Supply under IGST Act

1. MEANING OF “SUPPLY”
UNDER THE IGST ACT,2016
CA. KRISHAN DEV SINDHU
E: cakrishandev@gmail.com
M:+91-98785-40755 1

2. 2
Presentation Plan
 Introduction of IGST Act, 2016
 Meaning of IGST under IGST Act, 2016
 Taxable Event
 Meaning of Supply
 Applicability of IGST on supply of goods or services

3. THE INTEGRATED GOODS AND SERVICE TAX
ACT, 2016
It extends to the
whole of INDIA
It shall come into force on such
date as the CENTRAL
GOVERNMENT may by notification
in the official Gazette.
The IGST Act, 2016 consists of XI
Chapters and 24 Sections.
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4.  Meaning of “Integrated Goods and Service
Tax” Section 2(14) of IGST Act ,2016
TAX
Levied
Under
IGST Act
on the
SUPPLY
of any Goods
and/ or
Services
in the course of
INTER- STATE
trade or
commerce.
4

5. MUMBAI
Raj & Co.
(Registered
Taxable Person)
OUTWARD TAXABLE
SUPPLY:
MOVEMENT OF GOODS
DELHI
JP Associates
Transaction value : Rs. 1,00,000
Add GST:
CGST Nil
SGST Nil
IGST @ 28% 28,000
Total Value Rs. 1,28,000
Output Tax Liability:
CGST Nil
SGST Nil
IGST 28,000
Analysis of transaction:
 LOCATION OF SUPPLIER
 PLACE OF SUPPLY
Share of Central Government
(Under Article 269A of
Constitutional Amendment Bill,
GST on supply of inter-state trade
or commerce shall be levied and
collected by the Government of
India and shall be apportioned
between the Union and the States
as the manner as may be provided
by the Parliament by law on the
recommendation of the GST
Council.
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6. Central Levied
Tax
Excise Duty:
Manufacture
Service Tax:
Provision of
Service
Custom Duty,
CVD, BCD:
Import
Central sales Tax:
Inter- State Sale
of Goods
State Levied Tax
Sale Tax/ VAT: Intra –
State sale of goods
Entry Tax:
Entry of Goods in
State
Entertainment or
Luxury Tax:
Entertainment or
Luxury
GST
“Supply”
TAXABLE EVENT
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7. Meaning of “SUPPLY”: Section 2(26) of IGST,
2016 /Section of 3 of CGST Act,
2016
SUPPLY
SECTION 3 of CGST, Act
2016
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8. Section 3(1) Section 3(2) Section 3(3) Section 3(4) Section 3(5)
Includes,
Section 3(1)(a)
8 forms of Goods
&/or Services
for consideration
during the course
of business
Schedule II
Treated as
supply of
goods or
services
Schedule III
Activity or
transaction
Shall neither as
Supply of Goods
or Services
Recommendation
of GST council to
treated as supply
Goods/ services/
or neither as G/S
Section 3(5)(a)
Composite
Supply
Section 3(2)(b)
Importation of
Services
Schedule IV
Services of
Central/State/Lo
cal body neither
as supply of
goods or service
Section 3(5)(b)
Mixed
Supply
Section 3(1)(c)
Schedule I
Supply without
consideration
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9. SUPPLY INCLUDES,
Section 3(1)(a): All forms of
supply goods & /
or services
for consideration
during the course
or furtherance of
business
sale
transfer
barter
exchange
license
rental
disposal
lease
Section 2(28)”Consideration” & Section 2(17)”Business” under CGST Law. 9

10. Section 3(1)(b): IMPORTATION OF SERVICES
IMPORTATION OF
SERVICES
CONSIDERATION
BUSINESS OR
PRIVATE PURPOSE
Section 2(11) “Import of Service” & Section 2(12) “India” of IGST Act, 2016.
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11. Section 3(1)(c): SCHEDULE I: SUPPLY WITHOUT CONSIDERATION
SUPPLY
WITHOUT
CONSIDERATION
PERMANENT
TRANSFER /
DISPOSAL
of
BUSINESS
ASSET
GOODS
Principal >>>
Agent /
Agent >>>
Principal
Importation of SERVICES from
RELATED person or his
Establishment by Taxable Person
during the course or furtherance
of business
G/S >RELATED
or DISTINCT
PERSON
during the
course or
furtherance of
business.
Section 2(84) “related persons”, Section 10”Taxable Person” under CGST Act 2016 11

12. Section 3(2)
SCHEDULE II TREATED AS SUPPLY OF GOODS OR SERVICES
1.Transfer of
Goods
• SUPPLY OF GOODS
• Title in goods is transfer and payment in future date.
(Hire purchase agreement)
• SUPPLY OF SERVICE
• Transfer of goods without transfer of title.
2. Land & Building
• SUPPLY OF SERVICE
• Land lease/tendency/easement/license to occupy
land.
• Building  lease/let-out of commercial, industrial,
residential complex for business or commerce.
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13. 4.Transfer of
Business Asset
• SUPPLY OF GOODS-----Business
assets > Disposal/ Transfer >> with
or without consideration.
• SUPPLY OF SERVICE-----Business
goods > Private use owner or
another person>> with or without
consideration
• DEEMED SUPPLY----- Ceases to be
taxable person except transfer with
business continuity.
• SUPPLY OF SERVICES
• Treatment/ Process of another person
goods
Example: Job Workers
3.Process
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14. 6.Club,Association,
Society or any
unincorporated
association
• Supply of goods by
unincorporated association
or body of persons to
member
thereof for cash,
deferred payment or
other valuable
consideration.
• SUPPLY OF SERVICES
• Renting  Immovable Property
• Construction  Complex ,Building, Civil Structure
or part thereof
• Intellectual Property right
• IT Software
Development/Design/Programming/
customisation/upgrading/enhancement/
implementation.
• Work Contract  GOODS  Execution of Work
• Right to USE  ANY GOODS
• Supply OF FOOD/Any other Article/ Drinks
5.Specific Supply of
SERVICE
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15. Section 3(3): Activities or transactions specified under SCHEDULE III or SCHEDULE IV
Activity or Transaction SHALL neither
as Supply as GOODS nor Supply of
SERVICES
Service of
EMPLOYEE >>>EMPLOYER
(in the course of employment)
Court or Tribunal under any
law.
MP, MLA, Member of municipality or
local authority
Foreign diplomatic mission
Funeral, burial, cremation
Schedule III
Activity or Transaction undertaken by
the Central/State/Local Authority
SHALL neither as Supply as GOODS
nor Supply of Services
Service of Government, Local
authority >> to >> another
Government , Local authority.
Issuance of Passport, DL,BC,DC, right to
use of natural resources to the individual
farmer.
Municipality, Panchayat, Heathcare &
Education.
Schedule IV
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16. Section 3(4): POWERS OF CENTRAL GOVERNMENT / STATE GOVEREMENT
GST
COUNCIL
CENTRAL
GOVERMENT
STATE GOVERMENTS
TRANSACTIONS
to be treated as A
SUPPLY
OF
GOODS
A SUPPLY
SERVICES
NETHER
SUPPLY
OF
GOODS
NOR
SUPPLY
OF
SERVICES
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17. Section 3(5): TAX LIABILITY ON COMPOSITE OR MIXED SUPPLY
•Composite Supply
Two or more supply
With
PRINCIPAL supply
Shall
Be treated as supply
of
Principal Supply
Supply of principal goods with
packing, transportation and
insurance to the buyer.
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18. Each Independent goods are packed in a single
supply and can be sale individually.
Section 2(27)”Composite supply” and Section 2(66) “Mixed supply” of CGST Act, 2016.
Two or more supply
Shall
Be treated as
particular supply
which
Attracts
HIGHEST RATE OF TAX
• Mixed Supply
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19. 19
•IGST
INTER-
STATE
SUPPLY
•IGSTIMPORT OF
SERVICES
•BCD + IGSTIMPORT OF
GOODS
BASIC CUSTOMS DUTY (Entry No. 83) IS NOT SUBSUMED IN GST & IMPORT OF
GOODS OR SERVICES DEEMED AS INTER- STATE SUPPLY OF GOODS OR
SERVICES

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CA. KRISHAN DEV SINDHU
Email: cakrishandev@gmail.com
Mobile: 09878540755