Integrated Goods and Services Tax

1. Determination
of Nature of Supply
Under IGST
Poojitha.K
Assistant Professor

5. Nature or Features of Supply

7. 6. Supply Includes

21. Types of Supply Under IGST
Types of
supply
Based on
Combination
Mixed Supply
Composite
supply
Continuous
supply
Based on
Location
Inter-state
supply
Intra-state
supply
Territorial
waters
Based on
Recipient
Inward supply
Outward
supply
Based on Tax
Treatment
Exempted
supply
Zero-rated
supply
Taxable
supply
Non-taxable
supply

22. 1. Based on Location
a. Inter-state supply – It is a supply of goods or services where the location
of the supplier and place of supply are either in two different states, two
different union territories or a state and a union territory. It also includes
import of goods or import of goods or services into the territory of India.
The following shall be treated as inter-state supply:
When the supplier is located in India and place of supply is outside India.
Supply to or by a SEZ developer or SEZ unit is a Inter-state supply.
b. Intra-state supply – It is a type of supply where the location of the
Recipient and the place of supply is in the same state or same union
territory.

23. c. Territorial Water supply – It is a type of supply where the location of supplier and
or place of supply is in territorial waters. The place of supply in this case will be
nearest coastal state or union territory.
2. Based on Combination
a. Mixed Supply – This supply is a combination of two or more goods or services
made together for a single price. Each of these items can be supplied
separately and is not dependent on any other.
A mixed supply will have the tax rate of the item which have highest rate of tax.
If the items can be sold separately, then it would be mixed supply.
Example : A Diwali gift box consisting of canned foods, sweets, chocolates,
cakes, dry fruits, Aerated drinks, supplied for a single price is a mixed supply
because all these can be sold separately.

24. b. Composite supply – It means a supply made by taxable person to a
recipient consisting of two or more taxable supplies of goods or
services which are naturally bundled and supplied in the ordinary
course of business, one of which is a principal supply.
Example : Goods are parked and transported with insurance.
Insurance and transport cannot be done separately. If there are no
goods, transport cannot be done separately. Thus, supply of goods is
principal supply.
c. Continuous supply - Continuous supply is divided into continuous
supply of goods and continuous supply of services. continuous supply
of goods means goods which is provided or agreed to be provided
continuously or on recurrent basis under a contract, whether or not
by means of a wire, cable, pipeline or others for which the supplier
invoices the recipient on a regular or periodical basis.

25. Continuous supply of services means services which are provided
or agreed to be provided on a recurrent basis under a contract for a
period exceeding three months with periodic payment obligations.
3. Based on Recipient
a. Inward supply – Inward supply hall mean receipt of goods or
services or both whether by purchase acquisition or any other
means with or without consideration.
b. Outward supply – It means supply of goods or services or both
whether by sale, transfer, barter, exchange, license, rental, lease or
disposal made or agreed to be made in the course of furtherance of
business.

26. 4. Based on Tax Treatment
a. Exempted supply – Exempted supply is one which attracts nil rate
of tax or which may be wholly exempt from tax. The taxable person
shall not be required to pay tax. It includes non-taxable supply and
supply attracting nil rate of tax.
b. Zero Rated supply – It includes Exports or supply made to a SEZ
developer or SEZ unit. GST is not applicable in India for Exports.
Hence all exports made by registered taxpayer under GST is a zero
rated supply. It is eligible for refund.

27. c. Non- Taxable supply – It is the sale of any goods or services which
attracts nil rate of tax and is similar to exempted supply. There are
three types of exemption from charging GST they are:
 Supplies made outside GST system
 GST free supply
 Input taxed supplies
d. Taxable Supply – It means supply of goods or services which are
leviable to tax under GST Act.

28. Time of Supply

52. Place of Supply of Goods or Services or Both

54. Need or Importance of Place of Supply
• Goods & Services Tax (GST) is a destination based consumption tax,
mean tax should effectively where consumption of such supplies at
destination thereof or as the case may at point of consumptions.
• Place of supply is required to determine whether a supply is subject to
SGST or IGST, according to Intra-state or Inter-state transaction. Hence,
Place of supply play a vital role in determining which state going to
consume tax.
• The place of supply determines whether a transaction is intra-state or
interstate. In other words, the place of Supply of Goods or services is
required to determine whether a supply is subject to SGST plus CGST in a
given State or union territory or else would attract IGST if it is an inter-
state supply.

76. Place of Supply of Services - OIDAR

79. Summarized points for Place of supply

90. Thank You