WHAT IS SUPPLY IN GST ?
Supply define Under section 2(92) read with section 3 ‘supply’ includes all forms of supply of goods and/or services such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business Some Examples :-
- i) Rajkumar provide Coaching survice to Mr. Vishal without any consideration .It is not Supply.
- ii) Aakash Sold a new bike to Mr.chetan and he agree to pay consideration within 3 months.It is supply.
According to schedule I ,following activity/ transaction treated as supply even if consideration not present :-
i). Permanent transfer/disposal of business assets where input tax credit has been availed on such assets
Exp :-Mr.Mangesh purchase plant and machinery of Rs.10 lac in F.Y. 2016-2017 .He avail input tax credit in the year of purchase,subsequently he transfer his asset to Mr.prakash permanently. It is supply even consideration may not be present
ii). Supply of goods or services between related persons, or between distinct persons as specified in section 10, when made in the course or furtherance of business.
Exp :-Mr. A and Mr. B are partners in a partnership firm AB and Company. A&B shall be treated as related person. A transaction of supply between A & B in the course or furtherance of business shall be treated as supply even if made without consideration
iii). 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.
Exp :- Rajkumar under the contract to sale table fans on behaif of Ms.vivek for that Vivek send table fans to him And at end of year he send back old lot of fans and receive new one.It include in definition of supply.
Iv) 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.
Activity which not supply
Activities and transactions specified in Schedule III –
- Services by an employee to the employer in the course of or in relation to his employment;
- Services of funeral, burial, crematorium or mortuary including transportation of the deceased.
- Actionable claims, other than lottery, betting and gambling
- Sale of land / Sale of building after occupation or completion will not attract GST. Thus, sale of building before completion or before occupancy will attract GST.
- Supply of goods from a place in the non-taxable territory to another place in the non- taxable territory without such goods entering into india.
Examples
- i) Survice Provided by employee of RBI to RBI even if consideration may present.
- ii) Vidharbha and company has a branch located in USA .He sale a good to Mr.Sangkara in Shrilanka .This type supply excluded from definition of supply.
Difference between Composite and Mixed Supply
| Basis | Composite Supply | Mixed Supply |
| Defination | As per Sec 2(30) “Composite Supply” means Supply made by taxable person to a recipient consisting of two or more taxable supply of goods or survices or both or any combination thereof which are naturally bundled and supply in conjunction with each other one of which is principal supply. | As per Sec 2(74) “Mixed Supply “ means two or more supplies of goods or survices ,or any combination thereof ,made in conjuction with each other by a taxable person for an single price where such supply does not constitute a composite supply. |
| Main item | Principal item | Item with highest tax rate |
| Tax rate | Tax rate of principal item | Highest tax rate of all the items |
| Example
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A 5 star hotel in Pune providing a stay package with breakfast.
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Sale of cricket kit ,however item may be sale individualy.
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