CHAPTER 2. MEANING & SCOPE OF SUPPLY
SUPPLY[Sec.7]
Supply include-
All forms of supply of
goods or services or both 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.
Analysis-
·
The
activity involves supply of goods and services
·
The
supply is for consideration unless otherwise specifically provided
·
Supply
is made in the course of furtherance of business
·
Supply
is made in the taxable territory
·
Supply
is a taxable supply
·
Supply
is made by a taxable person
·
Compulsory
acquisition is supply
·
Barter/exchange/non
-monetary transactions are supply
·
Illegal
activities are supply
·
Immovable
property transactions are always supply
SUPPLIER[Sec.2(105) of
CGST]
The Person supplying
the said goods or services or both and
Shall include an agent
acting-
·
As
such on behalf of such supplier
·
In
relation to the goods or services or both supplied
RECIPIENT[Sec.2(93) of
CGST]
1.
Where
a consideration is payable for the supply of goods and services-
the
person who is liable to pay the consideration
2.
Where
no consideration is payable for the supply of GOODS-
§ the person to whom
goods are delivered or made available or;
§ To whom possession or
use of goods is given or made available
3.
Where
no consideration is payable for supply of services-
The
person to whom the service is rendered
INWARD SUPPLY[Sec.2(67)
of CGST]
Inward supply in
relation to a person shall mean receipt of goods or services or both
·
Whether
by purchase, acquisition or any other means
·
With
or without consideration
OUTWARD SUPPLY[Sec.2(83)
of CGST]
In relation to a
taxable person,
·
Means
supply of goods or services or both, whether-
o
Sale,
transfer, barter, exchange
o
License,
rental, lease or
o
Disposal
or
o
Any
other mode
·
Made
or agreed to be made
·
by
such person
·
In
the course or furtherance of business
TAXABLE SUPPLY[Sec.2(108)
of CGST]
Means,
·
a
supply
·
of
goods or services or both
·
Which
is leviable to tax under this Act
NON TAXABLE SUPPLY[Sec.2(78)
of CGST]
Means
·
A
supply of Goods or services or both
·
Which
is not leviable to tax
o
Under
this act or
o
Under
the IGST
EXEMPT SUPPLY[Sec.2(47)
of CGST]
Exempt Supply means,
Supply
of any Goods or Services or both-
·
Which
attracts nil rate of tax or
·
Which
may be wholly exempt from tax under Sec. 11(of CGST Act), or under Sec. 6 of
the IGST Act
COMPOSITE SUPPLY[Sec.2(30)
of CGST]
Composite supply means
a supply-
·
Made
by a taxable person
·
To
a recipient
·
Consisting
of 2 or more taxable supplies of G/S or both, or any combination thereof,
o
Which
are naturally bundled and supplied in conjunction with each other in the
ordinary course of business;
o
One
of which is a principal supply
MIXED SUPPLY[Sec.2(74)
of CGST]
Mixed supply means
·
Two
or more individual supplies of goods or services or any combination thereof,
·
Made
in conjunction with each other
·
By
a taxable person
·
For
a single price
·
Where
such supply does not constitute a composite supply
A composite supply
comprising of two or more supplies, one of which is a principal supply shall be
treated as a supply of such principal supply.
A composite supply
comprising of two or more supplies, shall be treated as a supply of that
particular supply which attracts the highest rate of tax
TESTS FOR COMPOSITE VS
MIXED SUPPLIES
|
Conditions
to be fulfilled
|
Composite
supply
|
Mixed
supply
|
|
1.
Naturally bundled
|
Yes
|
No
|
|
2.
Supplied together
|
Yes
|
Yes
|
|
3.can
be supplied separately
|
No
|
Yes
|
|
4.One
is prominent supply for recipient
|
Yes
|
No
|
|
5.Other
supply is not ‘aim in itself’ for recipient
|
Yes
|
No
|
|
6.
Each supply priced separately
|
No
|
No
|
|
7. All
supplies are goods
|
Yes
|
Yes
|
|
8. All
supplies are services
|
Yes
|
Yes
|
|
9. One
supply is goods and other supply is services
|
Yes
|
Yes
|
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