Supply means and 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.
Taxability of any Activities arises on basis of activities to be treated as Supply of goods or Supply of Service.
Activities which are treated as a Supply of Goods or Supply of Service as per Schedule II of Sec 7 of Central Goods and Service Tax Act 2017: -
1. Any Transfer of title in Goods or any Transfer of right in Goods without transfer of title.
2. Any Lease, Tenancy or letting out of Land or building or Residential Complex or Industrial wholly or partly for business or Commerce.
3. Renting of Immovable Property or Construction of a complex, building, civil structure or a part thereof, including a complex or building intended for sale to a buyer, wholly or partly, except where the entire consideration has been received after issuance of completion certificate.
4. Any Treatment or Process is to be applied on Goods amount to be Supply of Services.
5. Any Supply of goods by any unincorporated association or body of persons to a member thereof for cash, deferred payment or other valuable consideration.
6. Transfer of business assets either transferred as a going concern or Transfer of business assets or disposal of Assets under dissolution of business.
Activities which are Not Covered under Supply as Per Schedule III of Sec 7 of the Central Goods and Service Tax Act: -
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. Functions performed by the MPs, MLAs, Members of municipality and Member of other local authorities
4. Duties performed by any person who holds any constitutional post
5. 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.
6. Services of funeral, burial, crematorium or mortuary including transportation of the deceased
7. Sale of land and sale of building where entire consideration has been received after issuance of completion certificate
8. Actionable claims other than lottery, betting and gambling
Activities which are treated as Supply of Goods or Service even Supply if made without Consideration: -
1. Permanent transfer or disposal of business assets where input tax credit has been availed on such assets.
2. Supply of goods or services or both between related persons or between distinct persons as specified in section 25, when made in the course or furtherance of business: Provided that gifts not exceeding fifty thousand rupees in value in a financial year by an employer to an employee shall not be treated as supply of goods or services or both.
3. Supply of goods—
(a) by a principal to his agent 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.
Exempted Supply: - Exempted Supply means Supply of any Goods or Service which may be wholly exempted from Goods and Service Tax.
Taxable Supply: - Taxable Supply means Supply of any Goods or Service on which Chargeable Tax under Central Goods and Service Tax Act 2017.
Composite Supply: - Composite Supply means Supply of two or more Taxable Goods or Supply of Two or more Taxable Service or Supply of Combination of two or more Goods or service in naturally bundle supplied in conjunction with each other in the ordinary course of Business, out of two or more supply one should be Principle Supply.
Natural bundle means combination of supply two or more Goods or Supply of Service of two or more Service which interrelated to each other in such manner as such Goods or Services complementary to each other i.e. supply of one Good or Service shall be required on basis of Supply of Good or Service of another service.
Mixed Supply: - Mixed Supply means Supply of two or more Taxable Goods or Supply of Two or more Taxable Service or Supply of Combination of two or more Goods or service not in Naturally bundle supplied in conjunction with each other in the ordinary course of Business, in other words which do not consider Composite Supply.
Continuous Supply of Goods: - Continuous Supply of Goods means Supply of Goods which to be provided or agrees to be provided on continuous basis for a certain period.
Continuous Supply of Services: - Continuous Supply of Services means Supply of service which to be provided or agrees to be provided on continuous basis for a certain period.
Inter – State Supply of Goods or Service: - Inter State Supply of Goods or Service means Supply of Goods or Service or Both from one territory of State to territory of another State.
Intra – State Supply of Goods or Service: - Intra State Supply of Goods or Service means Supply of Goods or Service or Both within the Territory of State in which Tax Payer is registered.
Inward Supply: - Inward Supply means Purchases whether Taxable Purchase or exempted Purchases made by Tax Payer or Expense incurred by Taxpayer whether liable to Reverse charge or not.
Outward Supply: - Outward Supply means Sale of Goods or Service Provided by Tax Payer weather Taxable Sale of Goods or Taxable Service or Exempted Sale of Goods or Exempted Service.
Principal Supply: - Principal Supply means Predominate Supply of Goods or Service out of two or more supply of Goods or Supply service or both as Composite Supply in a natural bundle.