we are sharing in a very brief way and easy to understand supply under GST (Section 7 of CGST Act):
INCLUDES:
- SALE, TRANSFER, BARTER, EXCHANGE, LICENSE, RENTAL, LEASE, DISPOSAL, FOR CONSIDERATION, IN COURSE OF FURTHERENCE OF BUSINESS
- IMPORT OF SERVICES, FOR CONSIDERATION, WHETHER IN COURSE OF FURTHERENCE OF BUSINESS OR NOT
- ACTIVITIES SPECIFIED IN SCHEDULE-I, WITHOUT CONSIDERATION, IN COURSE OF FURTHERENCE OF BUSINESS
Schedule II: defines activities to be treated as supply of goods or supply of services
LET’S DISCUSS SCHEDULE I:
- Permanent transfer/disposal of Business Assets where ITC has been availed
- Supply Between related parties/distinct persons
- Gift by employer to employee exceeding Rs.50000
- Supply of goods by principal to agent or agent to principal
- Import of services by taxable person from related person or any of his establishment outside India in course of furtherance of business
SCOPE OF SUPPLY (SECTION 7):
EXCLUDES:
- NEGETIVE LIST OF SUPPLIES (SCHEDULE III):
- Services by employee to employer in relation of employment
- Services by any court/tribunal
- Functions performed by members of parliament, state legislature, panchayts, municipalities, other local authorities
- Services of funeral, burial, crematorium
- Sale of Land, Sale of Building (subject to some conditions)
- Actionable claims other than lottery, betting and gambling
- Transactions not covered by definition of supply
EXAMPLE
- Interest on FD
- Dividend
- Interest on saving account
NOT TO BE REPORTED IN GST RETURNS
- Non-Taxable Supplies
EXAMPLE
- Petroleum crude, high speed diesel, motor spirit (petrol), natural gas, and aviation turbine fuel
- Alcoholic liquor for human consumption
TO BE REPORTED IN GST RETURNS