Taxable Event Under GST Regime: Supply Includes

1. Presented by
CA Nisha Kulthia

3.  a) 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
 b) import of services, for a consideration whether
or not in the course or furtherance of business,
and
 c) activities specified in Schedule I, made or
agreed to be made without a consideration.
 d) activities to be treated as supply of goods or
supply of services as specified in ScheduleII

5. Taxable
supply(G+S)
►All good and services(except the exclusions)
► Exports- zerorate supply
but Exclude-Exempt supplies;
Non Taxable
supply
• Basic Customs Duty
• Stamp Duty
• Tax levied by Local bodies
• supply of the alcoholic liquor for human consumption
Exempt supply
• supply of petroleum crude, high-speed diesel (HSD), petrol, natural gas and aviation
turbine fuel (ATF)
From such date as may be notified by the Government on recommendation of the Council.
Exempt supply
(schedule -1)
gifts not exceeding INR50,000
in value in a financial year by an employer to an employee (considered as related parties)
Import of
Goods or
Services
Deemed as supply of goods or services or both
BCD and IGST
Deemed
exports(147)
applicable for goods which are ‘manufactured’ in India define condition -CG notify
where goods supplied do not leave India
AND
payment received either in Indian rupees or in convertible foreign exchange
Reverse
Charge(G+S) Purchase from unregistered supplier to a registered person

6. Goods
Movable property other than money and securities but includes actionable claim, growing crops, grass
and things attached
to or forming part of the land
Not covered
1. Intangible properties
2. securities( not intend to include stock market transactions)
Services Anything other than goods
Aggregate
Turnover
• Value of all taxable supplies,
• Exempt supplies, exports of goods and/or services
• Inter-State supplies
of a person having the same PAN
Minus
CGST
SGST
UTGST
Tax paid under Reverse Charge on Inward supplies
Consideration
(a) any payment
made or to be made,
whether in money or otherwise,
(b) monetary value of any act or forbearance
a. in respect of, in response to, or for the inducement of, the supply of goods or services or both
b. whether by the recipient or by any other person
c. but shall not include any subsidy given by the Central Government or a State
Government;
Deposit- not be considered as payment unless the supplier applies such deposit as consideration

7. Sr. Matter Example to relating matter
1. Permanent transfer/disposal of business
assets where input tax credit has been
availed on such assets.
· A company is donating its used computer, tables etc. to a school or charitable organization or
giving to the employees without consideration.
· Capital goods / plant and machinery transferred to another unit located in another state.
2. Supply of goods or services between related
persons
· Holding company provides corporate guarantee to subsidiary company for enabling them to
raise loan from banks.
orBetween distinct persons [as defined in
Sec. 25 of GST Act], when made in the
course or furtherance of business.Provided
that gift not exceeding Rs. 50,000 in value
in a financial year by employer to
employee shall not be treated as supply of
goods or services or both .
Generally no amount is charged for providing this guarantee but such transaction will be
conside
Stock transfer made to a unit outside the state or to a different business vertical of the same as
Employer and employee is covered in the definition of related person. Thus, any supply of
goods or services by employer to employee even free of cost would have been covered under
the scope of supply . But when the GST bill was passed in the Lok sabha on 29.03.2017 , this
clause was inserted to provide exemption of gift up Rs 50000 by the employer to employee in a
FY .
sessee will be reckoned as supply.red as supply.
3. Supply of goods— X Company, having godown in Mumbai transfer the goods to clearing and forwarding agent
located in MP, who only receives the goods on behalf of X company. This section makes
deeming provision that such activity of transfer shall be considered as supply and accordingly
GST will be payable.
a) by a principal[as defined in Sec. 2(88)] to
his agent[as defined in Sec. 2(5)] where the
agent undertakes to supply such goods on
behalf of the principal, or
b) by an agent to his principal where the
agent undertakes to receive such goods on
behalf of the principal.
4. Import 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.
If a registered Person Mr. A (India) import consultancy service from a related person Mr. B
(USA) in the course or furtherance of business then it shall be deemed to be supply of service
under this clause and hence taxable under the GST.

8. Imposition of GST is of the nature of Basic
Custom Duty (BCD) which is levied on
importation of goods irrespective of nature of
use of these goods, whether for personal
consumption or commercial use. Now
importation of service whether for personal
purpose or business purpose would be subject to
GST. Such services would be liable to GST under
Reverse Charge Mechanism (RCM).
 Condition for Import of Service-
◦ a) Supplier of service is located outside India,
◦ b) Recipient of service is located in India and
◦ c) Place of supply of service is in India.

9. 1 Transfer of the title in goods Sale of goods by one taxable person to
another.
2 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
Hire Purchase Agreement
3 Transfer/disposal of business
assets, with or without
consideration, under the directions
of the person carrying on the
business
§ Sale of office computer.
§ Free samples
4 Goods forming part of the assets on
ceasing to be a taxable person.
§ Person closing down his taxable business
§ Dissolution of partnership firm
5 Supply of goods by an
unincorporated association/body of
persons (BOP) to its member
§ Goods sold by a body of persons to its
member for cash or on deferred payment.
§ Supply of food, gaming tools, books etc. by
any club to its members.

12.  1. Services by an employee to the employer in the course of or in relation to his
employment.
 2. Services by any Court or Tribunal established under any law for the time being
in force.
 3. a. The functions performed by the Members of Parliament, Members of State
Legislature, Members of Panchayats, Members of Municipalities and Members of
other local authorities; b. The duties performed by any person who holds any post
in pursuance of the provisions of the Constitution in that capacity; or c. The duties
performed by any person as a Chairperson or a Member or a Director in a body
established by the Central Government or a State Government or local authority
and who is not deemed as an employee before the commencement of this clause.
4. Sale of land and subject to clause (b) of paragraph 5 of schedule II ,sale of
building .
 5. Actionable claims, other than lottery, betting and gambling.
 6. Services of funeral, burial, crematorium or mortuary including transportation of
the deceased. Explanation : for the purpose of paragraph 2 , the term “court “
includes District Court ,High Court, Supreme Court
 COMMENTS – Services at 1, 2 ,4 and 5 are similar to the “Exclusion in the
definition of Service” as defined in section 65B(44) of Finance Act,1994 and
services at 6 is taken from Negative List of services as defined in section 66D of
Finance Act, 1994.

13. Turnover aggregate turnover in a financial year does not exceed Rs. 50 Lakh
Option Laps aggregate turnover during a financial year exceeds the limit
Rate of Tax
Manufacturer-1%,
Trader- 0.50%
Restaurant Sector -2.5%.
Records not required to maintain detailed records
Input Tax Credit to
supplier not allowed ITC
Customers who buy
goods from registered
person who is under
composition scheme not allowed ITC
Issue of Tax Invoice not allowed to Supplier
Bill of supply issue mention the words “composition taxable person, not eligible to collect tax on Supplies”
Return
GSTR-4 on a quarterly
Annual return in FORM GSTR-9A
RCM not Covered
collect composition
tax from the buyer not allowed
Interstate supplies not allowed