2. Section 2(95) “supply’’ shall have the
meaning as assigned to it in section 3
Supply 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,
supply
Sale
Transfer
Barter
Exchange
Licence
Rental
Lease
Disposal
K.Vijaya Kumar, Asst.Commr. Belgaum,
C.Excise
2
3. SCHEDULE I
MATTERS TO BE TREATED AS SUPPLY
EVEN IF MADE WITHOUT CONSIDERATION
• Permanent transfer/disposal of business
assets where input tax credit has been
availed on such assets.
• Supply of goods or services between
related persons, or between distinct
persons.
• Supply of goods by a principal to his
agent where the agent undertakes to
supply such goods on behalf of the
principal.
• Importation of services by a taxable
person from a related person or from any
of his other establishments outside India,
in the course or furtherance of business.
Supply includes,-
importation of services,
for a consideration
whether or not in the
course or furtherance of
business.
A supply specified in
Schedule I, made or
agreed to be made
without a
consideration.
K.Vijaya Kumar, Asst.Commr. Belgaum,
C.Excise
3
4. SCHEDULE II
MATTERS TO BE TREATED
AS SUPPLY OF GOODS OR SERVICES
1. Transfer
Any transfer of the title in goods is a supply of goods.
a) Any transfer of goods or of right in goods or of undivided
share in goods without the transfer of title thereof, is a
supply of services.
b) Any transfer of title in goods under an agreement which
stipulates that property in goods will pass at a future date
upon payment of full consideration as agreed is a supply of
goods.
2. Land and Building
a) Any lease, tenancy, easement, licence to occupy
land is a supply of services.
b) Any lease or letting out of the building including a
commercial, industrial or residential complex for business
or commerce, either wholly or partly, is a supply of services.
3. Treatment or process
(a) Any treatment or process which is being applied to another
person’s goods is a supply of services.
4. Transfer of business assets…………………………………
…………………………………………………
Schedule II,
in respect of
matters mentioned
therein, shall apply
for determining
what is, or is to be
treated as a supply
of goods or a
supply of services.
Whether to be treated
as a supply of goods or
a supply of services ?
K.Vijaya Kumar, Asst.Commr. Belgaum,
C.Excise
4
5. Activities or transactions
specified in schedule III;
or
Activities or transactions
undertaken by the
Govts., which they are
engaged as public
authorities as specified
in Schedule IV,
shall be treated neither as
a supply of goods nor a
supply of services.
SCHEDULE III
ACTIVITIES OR TRANSACTIONS WHICH SHALL
BE TREATED NEITHER AS A SUPPLY OF GOODS
NOR A SUPPLY OF SERVICES.
Services by an employee to the employer
in the course of or in relation to his
employment.
Services by any Court or Tribunal established
under any law for the time being in force.
Services by a foreign diplomatic mission
located in India.
Services of funeral, burial, crematorium or
mortuary including transportation of the
deceased.
K.Vijaya Kumar, Asst.Commr. Belgaum,
C.Excise
5
6. The Central or a State Government may,
upon recommendation of the Council,
specify, by notification, the transactions
that are to be treated as—
a supply of goods and not as a supply
of services; or
a supply of services and not as a
supply of goods; or
neither a supply of goods nor a supply
of services.
K.Vijaya Kumar, Asst.Commr. Belgaum,
C.Excise
6
7. The tax liability shall be determined in
the following manner —
(a) a composite supply comprising
two or more supplies, one of which
is a principal supply, shall be
treated as a supply of such
principal supply;
(a) a mixed supply comprising two or
more supplies shall be treated as
supply of that particular supply
which attracts the highest rate of
tax.
K.Vijaya Kumar, Asst.Commr. Belgaum,
C.Excise
7
8. (2) The time of supply of goods shall be
the earlier of the following dates,
namely,-
(a) the date of issue of invoice by
the supplier (or the last date on
which he is required to issue the invoice)
or
(b) the date on which the supplier
receives the payment with
respect to the supply:
K.Vijaya Kumar, Asst.Commr. Belgaum,
C.Excise
8
9. The earliest of the following dates,
namely—
a) the date of the receipt of goods, or
b) the date of payment or
c) thirty days from the date of issue
of invoice by the supplier.
If it is not possible to determine under
clause (a), (b) or (c), the date of entry
in the books of account of the
recipient of supply.
K.Vijaya Kumar, Asst.Commr. Belgaum,
C.Excise
9
10. (4) In case of supply of vouchers, the time of supply
shall be-
a) the date of issue of voucher or
b) the date of redemption of voucher.
(5) In case it is not possible to determine the time
of supply under the provisions of sub-section (2), (3)
or (4) the time of supply shall,-
a) date of periodical return filed or
b) the date on which the CGST/SGST is paid.
K.Vijaya Kumar, Asst.Commr. Belgaum,
C.Excise
10
11. (1) The time of supply of services shall be
the earlier of the following dates,
namely:-
(a) the date of issue of invoice or
(b) the date of receipt of payment.
(3) The time of supply shall be the earlier of the following dates, namely-
(a) the date of receipt of payment or
(b) 60 days immediately from the date of invoice.
UNDER FORWARD CHARGE
UNDER REVERSE CHARGE
K.Vijaya Kumar, Asst.Commr. Belgaum,
C.Excise
11
12. The time of supply shall be-
(a) the date of issue of voucher. or
(b) the date of redemption of voucher.
(5) Where it is not possible to determine the time of supply
of services in the manner specified in sub-sections (2), (3)
or (4), the time of supply shall,-
(a) the date of filing of periodical return.
(b) the date on which the CGST/SGST is paid.
SUPPLY BY VOUCHER
K.Vijaya Kumar, Asst.Commr. Belgaum,
C.Excise
12
13. Is it as per old rate or new rate ?
(b) in case the goods or services
have been supplied after the
change in rate of tax,-
(a) in case the goods or services
have been supplied before
the change in rate of tax ,-
In two different situations:-
K.Vijaya Kumar, Asst.Commr. Belgaum,
C.Excise
13
14. (i) where the invoice issued and the payment is also received after the change,
the time of supply, whichever is earlier; or
(ii) where the invoice issued prior to change but the payment is received after the
change, then the date of issue of invoice; or
(iii) where the payment is received before the change, but the invoice issued after
the change, then the date of receipt of payment.
Date of invoice Vs Date of payment received.
Case Before Change After Change Effective Date
1 Invoice issued.
Payment received
Whichever is earlier.
2 Invoice issued Payment received Date of invoice
3 Payment received Invoice issued Date of receipt of payment
BEFORE THE CHANGE IN
RATE OF TAX , –
K.Vijaya Kumar, Asst.Commr. Belgaum,
C.Excise
14
15. (i) where the payment is received after the change but the invoice issued prior
to the change, the time of supply shall be the date of receipt of payment; or
(ii) where the invoice issued and the payment received before the change, the
time of supply shall be the date of receipt of payment or date of issue of
invoice, whichever is earlier; or
(iii) where the invoice issued after the change in rate of tax but the payment is
received before the change, then the date of issue of invoice.
Case Before Change of
Rate of Tax
After Change of the
Rate of Tax
Effective date
1 Invoice issued. Payment received Date of receipt of payment
2 Invoice issued.
Payment received.
whichever is earlier
3 Payment received Invoice issued Date of invoice
AFTER THE CHANGE
IN RATE OF TAX, –
K.Vijaya Kumar, Asst.Commr. Belgaum,
C.Excise
15
16. The value of a supply of goods
and/or services shall be the
transaction value,
that is the price actually paid or
payable for the said supply of
goods and/or services,
where the supplier and the
recipient of the supply are not
related and the price is the sole
consideration for the supply.
K.Vijaya Kumar, Asst.Commr. Belgaum,
C.Excise
16
17. (a) any taxes, duties, cesses, fees and charges levied under any
statute, other than the (SGST Act/the CGST Act), if charged
separately by the supplier to the recipient;
(b) any amount that the supplier is liable to pay in relation to
such supply but which has been incurred by the recipient of
the supply and not included.
(c) incidental expenses, such as, commission and packing,
charged by the supplier to the recipient of a supply.
(d) Interest or late fee or penalty for delayed payment of any
consideration for supply; and
(e) Subsidies directly linked to the price excluding subsidies
provided by the Central Govt. and State Govt.
K.Vijaya Kumar, Asst.Commr. Belgaum,
C.Excise
17
18. The value of the supply shall
not include any discount that
is given:
before or at the time of the supply
provided such discount has been duly
recorded in the invoice issued in
respect of such supply; AND
after the supply has been effected,
provided that:
……………………………
K.Vijaya Kumar, Asst.Commr. Belgaum,
C.Excise
18
19. Where the value of the supply of goods or
services cannot be determined under sub-
section (1), the same shall be determined in
such manner as may be prescribed.
Notwithstanding anything contained in sub-
section (1) or sub-section (4), the value of
such supplies as may be notified by the
Central or a State Government in this behalf
on the recommendation of the Council shall
be determined in such manner as may be
prescribed.
K.Vijaya Kumar, Asst.Commr. Belgaum,
C.Excise
19
