Supply under GST (goods and services tax)

Supply under GST (goods and services tax)

1. 1
Definitions, Scope
of Supply, Levy &
Collection Under
GST
CA Ganesh Prabhu Balakumar
B.Com, MFM, F.C.A, LL.B, DISA (ICAI)

2. 2
Introduction of GST
Goods&ServicesTax
DualGST:CGST/SGSTOrIGST
SingleTaxpayableonTaxableSupply
Applicability-WholeIndiaexceptJammu&
Kashmir
Force–NotificationintheOfficialGazette

3. 3
India (Sec 2(56) of CGST Act)
TerritoryofIndia
Territorialwaters
Seabed&sub-Soil
ContinentalShelf
ExclusiveEconomicZones
MaritimeZones
AirSpacesaboveTerritory
&waters

4. 4
Definitions {Sec 2(1) to Sec 2(121)}
Goods & Services
Persons
Location & Place
Supply
ITC
Misc...

5. 5

6. 6
Goods & Services under CGST Act
Goods -Sec 2(52) Services -Sec 2(102)
“Goods” means “Services” means
Every kind of movable property Anything
Other than money and securities Other than goods, money and
securities
but includes actionable claim,
growing crops, grass and things
attached to or forming part of the land
which are agreed to be served before
supply or under a contract of supply
but includes activities relating to
•the use of money; or
•its conversion by cash or any other
mode, from one form, currency or
denomination, to another form,
currency or denomination
for which a separate consideration is
Charged

7. 7

8. 8
Person (Sec 2(84) of CGST Act)
Includes
a)Anindividual
b)AHinduUndividedFamily
c)Acompany
d)Afirm
e)ALimitedLiabilityPartnership
f)Anassociationofpersonsorabodyofindividuals,
whetherincorporatedornot,inIndiaoroutsideIndia
g)AnycorporationestablishedbyorunderanyCentralAct,
StateActorProvincialActoraGovernmentCompanyas
definedinSection2(45)oftheCompaniesAct,2013
h)Anybodycorporateincorporatedbyorunderthelawsof
acountryoutsideIndia.

9. 9
Person (Sec 2(84) of CGST Act)
(I )A co-operative society registered under law relating
to co-operative society
(j)A local authority
(k)A Central Government or State Government
(l)Society as defined under the Societies Registration
Act, 1860
(m)Trust; and
(n)Every artificial juridical person, not falling within any
of the above

10. 10
Supplier (Sec 2(105) of CGST Act)
In relation to any Goods or Services or Both shall mean 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

11. 11
Recipient (Sec 2(93) of CGST Act)
Inrelationtoanygoodsorservicesorboth
Where a
consideration is
payable
for the supply of
goods or services
or both
The person who is liable
to pay that
consideration.
Where no
consideration is
payable
for the supply of
goods
The person to whom the
goods are:
•delivered or made
available; or
•possession or use of
the goods is given or
made available.
Where no
consideration is
payable
for the supply of
services.
The person to whom the
service is rendered.

12. 12
Recipient (Sec 2(93) of CGST Act)
•AnyreferencetoaPersontowhomaSupplyismade
shallbeconstruedasareferencetotheRecipientofthe
Supplyand
•ShallincludeanAgentactingassuchonbehalfofthe
RecipientinrelationtotheGoodsorServicesorBoth
Supplied

13. 13
Taxable Person (Sec 2(107) of CGST Act)
Means a person
a)Who is registered; or
b)Who is liable to be registered u/s 22 or 24
Means a person
•who occasionally undertakes transactions involving
supply of goods or services or both in the course or
furtherance of business, whether as principal, agent or
•in any other capacity, in a State or a Union territory where
he has no fixed place of business
Casual Taxable Person (Sec 2(20) of CGST Act)

14. 14
Non –Resident Taxable Person -Sec 2(77)
MeansAnyPerson
•Who occasionallyundertakestransactions
involvingsupplyofGoodsorServicesorBoth,
whetherasprincipalorAgentorinanyother
capacity
•Butwhohasnofixedplaceofbusinessor
residenceinIndia

15. 15
Principal (Sec 2(88) of CGST Act)
Means a person
•On whose behalf an agent carries on the business of
supply or receipt of Goods or Services or Both
Means a person,
•including a factor, broker, commission agent, arhatia, del
credere agent, an auctioneer, other mercantile agent,
whatever name called, who carries on business of supply
or Receipt of Goods or Services or both on behalf of
another
Agent (Sec 2(5) of CGST Act)

16. 16
Job Work u/s 2(68) of CGST Act
Job Work is defined as :
Means
•Any Treatment or
•Process
•Undertaken by a Person
•On goods belonging to
•Another Registered Person
•Expression “Job
Worker” shall be
constructed
Accordingly

17. 17
Agriculturist (Sec 2(7) of CGST Act)
MeansanIndividualoraHUFwhoundertakescultivationof
Land–
a)ByOwnLabour,or
b)BytheLabourofFamily,or
c)ByServantsonWagespayableincashorKindorby
hiredlabourunderpersonalsupervisionorthe
personalsupervisionofanymemberofthefamily

18. 18
Family (Sec 2(49) of CGST Act)
Means
a)TheSpouseandchildrenoftheperson,and
b)Theparents,grand-parents,brothersandsistersofthe
personiftheyarewhollyormainlydependentonthe
saidperson

19. 19
E-Commerce Operator -Sec 2(45)
Means any person
•Who Owns, Operates or Manages digital or Electronic
facility or platform for E -Commerce
Means
•The supply of Goods or Services or Both including digital
Products over digital or electronic network
E –Commerce (Sec 2(44) of CGST Act)

20. 20
ISD
Office of Supplier of
G or S
Receives Tax
Invoice towards
receipt of Input
Services
Distribute Credit of
CGST/SGST/IGST to
a Suppler of G or S
Issues Invoice
or Other
Documents
prescribed for
Distribution of
Credit
Input Service Distributor -Sec 2 (61)

21. 21
Location & Place

22. 22
Place of Business -Sec 2(85) of CGST Act
•A place from where the business is ordinarily carried on
•And Includes a warehouse, a godown, or any other place
where a taxable person
•Stores his goods, Supplies or receives goods or services or
both
•A place where a taxable person maintains his books of
account; or
•A place where a taxable person is engaged in business
through an agent, by whatever name called

23. 23
Business -Sec 2(17) of CGST Act
includes––
(a) any trade, commerce, manufacture, profession, vocation, adventure,
wager or any other similar activity, whether or not it is for a
pecuniary benefit;
(b) any activity or transaction in connection with or incidental or
ancillaryto sub-clause (a);
(c) any activity or transaction in the nature of sub-clause (a), whether or
not there is volume, frequency, continuity or regularity of such
transaction;
(d) supply or acquisition of goods including capital goods and services in
connection with commencement or closure of business;

24. 24
Business -Sec 2(17) of CGST Act
(e) provision by a club, association, society, or any such body (for a
subscription or any other consideration) of the facilities or benefits to its
members;
(f) admission, for a consideration, of persons to any premises;
(g) services supplied by a person as the holder of an office which has been
accepted by him in the course or furtherance of his trade, profession or
vocation;
(h) services provided by a race club by way of totalisator or a licence to book
maker in such club ; and
(i) any activity or transaction undertaken by the Central Government, a State
Government or any local authority in which they are engaged as public
authorities

25. 25
Business Vertical-Sec 2(18) of CGST Act
Meansadistinguishablecomponentofanenterprisethatis
engagedinthesupplyofindividualgoodsorservicesoragroupof
relatedgoodsorserviceswhichissubjecttorisksandreturnsthat
aredifferentfromthoseoftheotherbusinessverticals.
Explanation.––Forthepurposesofthisclause,factorsthatshouldbe
consideredindeterminingwhethergoodsorservicesarerelated
include––
(a)thenatureofthegoodsorservices;
(b)thenatureoftheproductionprocesses;
(c)thetypeorclassofcustomersforthegoodsorservices;
(d)themethodsusedtodistributethegoodsorsupplyofservices;
(e)thenatureofregulatoryenvironment(whereverapplicable),
includingbanking,insurance,orpublicutilities

26. 26
Principal Place of Business –Sec 2(89)
Means the Place of Business specified as Principal place of Business
in the certificate of Registration
Fixed Establishment -Sec 2(50) of CGST
Means a place
•(other than the registered place of business)
•which is characterized by a sufficient degree of permanence and
suitable structure in terms of human and technical resources
•to supply services, or
•to receive and use services for its own needs.

27. 27
Location of the Recipient of Services Sec 2(70)
Whereasupplyisreceived
Place of Business for which the
registration has been obtained
The Location of such Place of
Business
Place other than the place of
business for which registration
has been obtained
(a fixed establishment elsewhere)
The location of such fixed
establishment
More than one establishment,
whether the place of business or
fixed establishment
The location of the establishment
most directly concerned with
the receipt of the supply
In absence of such places The location of the usual place
of residence of the recipient

28. 28
Location of the Supplier of Services Sec 2(71)
Whereasupplyismade
Place of Business for which the
registration has been obtained
The Location of such Place of
Business
Place other than the place of
business for which registration
has been obtained
(a fixed establishment elsewhere)
The location of such fixed
establishment
More than one establishment,
whether the place of business or
fixed establishment
The location of the establishment
most directly concerned with
the provision of the supply
In absence of such places The location of the usual place
of residence of the Supplier

29. 29
Usual Place of Residence –Sec 2(113)
•Incase of an individual, the place where he ordinarily resides
•In other cases, the place where the person is incorporated or
otherwise Legally constituted
Address of Delivery -Sec 2(2) of CGST Act
•Address of the Recipient of Goods or Services or Both indicated on
the Tax Invoiceissued by a Registered Person for Delivery of Such
Goods or Services or Both
Address on Record -Sec 2(3) of CGST Act
•Address of Recipient as available in the records of the Supplier

30. 30
Non Taxable Territory –Sec 2(79)
•The territory which is outside the Taxable Territory
Taxable Territory -Sec 2(109) of CGST Act
•TheterritorytowhichtheProvisionsofthisActApply
•Sec1ofCGSTAct
•ExtentstoWholeofIndiaexceptJ&K
•TaxableTerritoryVsIndia

31. 31
Turnover in State / UT-Sec 2(112) of CGST Act
•TheAggregatevalueofallTaxableSupplies(Excludingthe
valueofInwardSuppliesonwhichTaxispayablebyaperson
onReverseChargebasis)
•ExemptsuppliesmadewithinstateorUnionTerritorybya
TaxablePerson,exportofGoodsorServicesorBoth
•Inter-StatesuppliesofGoodsorServicesorBothmadefrom
theStateorUTbythetaxablepersonbutexcludesCentral
Tax,StateTax,UnionTerritoryTax,IntegratedTaxandCess

32. 32
Aggregate Turnover (Sec 2(84) of CGST Act)
Means the aggregatevalue of all taxable supplies
Excluding the value of inward supplies on which tax is
payable by a person on Reverse Charge basis, exempt
supplies, exports of goods or services or both and inter-
State
Supplies of persons having the same Permanent Account
Number
To be computed on all India basis but excludescentral
tax, State tax, Union territory tax, integrated tax and cess;

33. 33

34. 34
Composite Supply -Sec 2(30)Mixed Supply -Sec 2 (74)
Means Means
Supply Two or more individual supplies
of goods or services, or any
combination thereof
made by a taxable person to a recipient
Consisting of two or more taxable
supplies of goods or services or both
or any combination thereof
Made in conjunction with each
other by a taxable person
Which are naturally bundled and
supplied in conjunction with each
other in the ordinary course of business
For a single price
One of which is a principal supply Where such supply does not
constitute a Composite Supply

35. 35
Principal Supply (Sec 2(90) of CGST Act)
Means the supply of goods or services which
constitutes
the predominant elementof a composite supply and
to which any other supply forming part of that
composite supply is ancillary
Taxable Supply(Sec 2(108) of CGST Act)
Means a Supply of Goods or Services or Both which is
leviable to tax under this Act

36. 36
Exempted Supply –Sec 2(47) of CGST Act
Means supply of goods or services or both which
–attracts nil rate of tax ; or
–which may be wholly exempt from tax u/s 11 or u/s 6
of the IGST Act;
–and includes non-taxable supply.
Non-taxable supply-Sec 2(78) of CGST Act
Means a supply of goods or services or both which is not
leviable to tax under CSGT Act / SGST Act / IGST Act.

37. 37
Continuous Supply of Goods –Sec 2(32)
Means a Supply of Goods which is
provided, or agreed to be provided, continuously or on
recurrent basis, under a contract, whether or not by
means of a wire, cable, pipeline or other conduit, and
for which the supplier invoices the recipient on a
regular or periodic basisand
includes supply of such goods as the Government may,
subject to such conditions, as it may, by notification,
specify

38. 38
Continuous Supply of Services –Sec 2(33)
Means a supply of Services which is
provided, or agreed to be provided, continuously or
on recurrent basis, under a contract,
for a period exceeding three months with periodic
payment obligations and includes
supply of such services as the Government may,
subject to such conditions, as it may, by notification,
specify

39. 39

40. 40
Input Tax u/s 2(62) of CGST Act
Input Tax in relation to taxable person
Means
•IGST (Including IGST
Paid on IG)
•CGST
•SGST/UTGST
•Charged on any Supply
of G or S
Includes
•Tax
Payable
under
RCM
Excludes
•Tax paid
under
Composition
Levy –Sec 10

41. 41
Capital Goods u/s 2(19) of CGST Act
Capital Goods is defined as :
Means
•Any Goods
•Value of which is
Capitalized
•In books of Accounts
•Of the Taxable Person
•Who Claims ITC
•Used or intended
to be used
•In the Course or
Furtherance of
Business

42. 42
Input u/s 2(59) of CGST Act
Input is defined as :
Means
•Any Goods
•Other than CG
•Used or
•Intended to be used
•By a
Supplier
•In the
Course or
Furtherance
of Business

43. 43
Input Service u/s 2(60) of CGST Act
Input Service is defined as :
Means
•Any Service
•Used or
•Intended to be used
•By a
Supplier
•In the Course
or
Furtherance
of Business

44. 44

45. 45
Consideration –Sec 2(31) of CGST Act
Inrelationtothesupplyofgoodsorservicesorbothincludes–
(a)anypaymentmadeortobemade,whetherinmoneyor
otherwise,inrespectof,inresponseto,orfortheinducement
of,thesupplyofgoodsorservicesorboth,whetherbythe
recipientorbyanyotherperson
(b)themonetaryvalueofanyactorforbearance,inrespectof,
inresponseto,orfortheinducementof,thesupplyofgoodsor
servicesorboth,whetherbytherecipientorbyanyother
personbutshallnotincludeanysubsidygivenbytheCentral
GovernmentoraStateGovernment
Adepositgiveninrespectofthesupplyofgoodsorservices
orbothshallnotbeconsideredaspaymentmadeforsuch
supplyunlessthesupplierappliessuchdepositas
considerationforthesaidsupply

46. 46
Works Contract –Sec 2(119) of CGST Act
•Meansacontractforbuilding,construction,fabrication,
completion,erection,installation,fittingout,
improvement,modification,repair,maintenance,
renovation,alterationorcommissioningofany
immovableproperty
•whereintransferofpropertyingoods(whetheras
goodsorinsomeotherform)isinvolvedinthe
executionofsuchcontract

47. 47
Voucher –Sec 2(118) of CGST Act
•Meansaninstrumentwherethereisanobligationto
acceptitasconsiderationorpartconsiderationfora
supplyofgoodsorservicesorbothand
•wherethegoodsorservicesorbothtobesuppliedorthe
identitiesoftheirpotential
•suppliersareeitherindicatedontheinstrumentitselfor
inrelateddocumentation,includingthetermsand
conditionsofuseofsuchinstrument

48. 48
Reverse Charge –Sec 2(98) of CGST Act
Means the liability to pay tax by the recipient of supply of
goods or services or both instead of the supplier of such
goods or services or both
Tax Period –Sec 2(106) of CGST Act
Means the period for which the return is required to be
furnished

49. 49
Audit –Sec 2(13) of CGST Act
•Meanstheexaminationofrecords,returnsandother
documentsmaintainedorfurnishedbytheregistered
personunderthisActortherulesmade
•Thereunderorunderanyotherlawforthetimebeingin
forcetoverifythecorrectnessofturnoverdeclared,taxes
paid,refundclaimedandinputtaxcreditavailed,andto
•assesshiscompliancewiththeprovisionsofthisActor
therulesmadethereunder

50. 50
Adjudicating Authority –Sec 2(4)
•Meansanyauthority,appointedorauthorisedtopass
•anyorderordecisionunderthisAct,
•butdoesnotincludetheCentralBoardofExciseand
Customs,theRevisionalAuthority,theAuthorityfor
AdvanceRuling,theAppellateAuthorityforAdvance
Ruling,theAppellateAuthorityandtheAppellate
Tribunal

51. 51
Officers under GST(Sec 3 of CGST Act)
•Government–bynotification–Appointsthefollowingclasses
ofOfficers
•PrincipalChiefCommissioners/PrincipalDirectorofCT
•PrincipalCommissionersorPrincipalAdditionalDirectorsof
generalCT.
•CommissionersorAdditionalDirectorsofgeneralCT.
•AdditionalCommissionersorAdditionalDirectorsofCT.
•Joint/DeputyCommissionersorJoint/DeputyDirectorsofCT.
•AssistantCommissionersorAssistantDirectorsofCT.
•AnyotherclassofOfficersasitmaydeemfit

52. 52
Appointment & Powers of Officers (Sec 4 & 5)
•BoardAppointsofficersinAdditiontoSec3
•Boardmay,byorderAuthorizeanyofficertoappointOfficer
belowtheRankofAssistantCommissionerofCentralTaxfor
theAdministrationoftheAct
•AnofficerofCentralTaxmayexercisethepowersand
dischargethedutiesconferredorimposedunderthisAct–
OfficerwhoisSubordinatetohim.
•The Commissionermay, subject to such conditions and
limitations as may be specified in this behalf by him, delegate
his powers to any other officer who is subordinate to him.

53. 53
Authorization of ST or UTT Officers (Sec 6)
Officers appointed under State/ UT Act -Proper Officers
(a) PO issues order CGST Act he shall issue an order under
SGST/UGST Act under intimation to the jurisdictional Officer of
ST/UTT
(b)POundertheSGST/UGSTActhasinitiatedanyproceedings
onsubjectmatter,noproceedingsshallbeinitiatedbytheproper
OfficerunderCGSTActonsamesubjectmatter
(c) Proceedings for rectification, appeal and revision, of order
passed by an Officer appointed under CGST Act shall not lie
before a ST/UTT Officer

54. 54
Sch1 Activities
w/o Consd.
Sch3 Activities -
NOT
Activities by Govt
or LA as Public
Authorities
Notified by Govt
+ Co GST recom.
Sale,
transfer,
barter,
exchange,
license,
rental, lease,
disposal w/o
consd
Import services
w/ or w/o
Consd.
Scope
of
Supply
Sch2 Activities
Section 7 of CGST Act -Supply

55. 55
•Permanent Transfer of BA -ITC
•Supply Between Related or Distinct Person –FoB
•Gift by Employer to Employee –Rs.50,000/-
•Supply by Principal to Agent or
•Receipt of Goods by Agent on behalf of Principal
•Import of Service –Related Person -FoB
Sch–I Supply without Consideration

56. 56
•Transfer of title in Goods -SoG
•Right or UDS in Goods W/O Title Transfer –SoS
•Transfer of title in Goods -Future Date –HP/EMI -SoG
•Right in Immovable Property W/O Title Transfer -SoS
•Treatment or Process –Another Person Goods -SoS
•Transfer of BA –No Longer Forms Part -SoG
SchII Supply of Goods or Services

57. 57
•If a BA –Private Use or Any Purpose other than purpose
of Business –SoS
•If a BA held by a taxable person who ceases to be a
taxable person –SoG
•Renting of IMP –SoS (DS)
•Construction of Complex –SoS -Except Entire Consd.
•Temporary Transfer IPR –SoS
SchII Supply of Goods or Services

58. 58
•Information Technology Software –SoS
•Refrain from Act or Tolerate an Act –SoS
•Transfer of Right to use any Goods –SoS
•Composite Supply –WCS & Supply of Food
•Supply of Food by Club or Association -SoG
SchII Supply of Goods or Services

59. 59
•Service -Employee to Employer –In Relation or Course
•Any Court or Tribunal, Functions –MP, MLA, etc.
•Post Recognized by CoI or CP, M, D of Board or
Commission of CG or SG or LA
•Funeral, Burial, Cremation, or Mortuary
•Sale of Land (except Construction of Complex)
•Actionable Claims (except Lottery, Betting, Gambling)
SchIII –Neither SoGor SoS

60. 60
•TaxLevyofCGST(SGSTLevy–RespectiveSGSTAct)
•AllIntra-StateSupplyofGorSorB–ExceptLiquor
•ValuedeterminedasperSec15ofCGSTAct
•RateNotifiedbyCG,SG
•NotExceeding20%
•CollectedinMannerPrescribed(Sec12&13)
Sec 9 (1) Levy of CGST & SGSTSec 9 (1) Levy of CGST & SGST

61. 61
CG & SG –Recommendation GST Council
Specify Goods or Services or Both
Tax on which Payable under Reverse Charge
Tax shall be paid by Recipient
All provisions apply as if he is Supplier of such
Goods or Services.
Sec 9 (3) Levy of CGST & SGST -RCM

62. 62
•Supply of taxable Goods or Services or Both
•By a Supplier, who is not registered under GST
•Tax on which Payable under Reverse Charge
•Tax shall be paid by such person as Recipient
•All provisions apply as if he is Supplier of such Goods
or Services.
Sec 9 (4) Levy of CGST & SGST –URS

63. 63
•CG&SGonRecommendationsofGSTCouncil
•SpecifycategoryofServices(Goods–NA)
•TaxonwhichshallbepaidbyE-CommerceOperator
•Ifsuchservicesaresuppliedthroughthem
•AllprovisionsapplyasifheisSupplierofsuchGoods
orServices.
Sec 9 (5) Levy of CGST & SGST Sec 9 (5) Levy of CGST & SGST ––EComECom

64. 64
Sec 8 –TL on Mixed & Composite
Basis
Mixed
Supply
Composite
Supply
Meaning Two or more
supplies together,
which is NOT a
Composite Supply
Two or More
supplies with
1 Principal Supply
& Naturally
Bundled
Treatment As supply of that
supply w/ higher
tax rate
As supply of that
principal supply

65. 65
PY Aggregate
Turnover ≤ Rs.50
Lakh
Engage in Supply
of Services of
Supply of Foods
(Sch2 Para6 Clause (b))
Engage in making
Supply of goods
which are liveable
to tax under this
Act;
NOT Engaged
Inter-State Outward
supplies of Goods;
NOT Engaged
Supply of goods
through E Com
(Sec 52 of CGST Act)
Composition Levy -Eligibility

66. 66
NOT Manufacturer of
goods Notified*
If same PAN for more
than 1 RP, eligible
only if both or all opt
for Composition Levy
NOT collect any tax
from Recipient &
NOT entitled to ITC
If RP opted without
being eligible and PO
has reasons –Tax+
Penalty u/s 73 & 74
Composition Levy -Eligibility

67. 67
Manufacturer
1% of State or
UT Turnover
Supply of
Food
2 ½% of
State/UT
Turnover
Other
Suppliers
½% of
State/UT
Turnover
Composition Levy -Sec 10 of CGST Act

68. 68
NeitheraCTPoraNRTP.
GoodsheldinStockasonADarenot
InterStateorBranchTransfer
ImportedPurchase
UnregisteredPerson.(paytaxunder(3)&(4)of
Sec9ofCGSTAct)
MentionthewordCTP-oneveryBill,Notices&
onSignboard
Neednotfileafreshintimationeveryyear.
Conditions & Restrictions

69. 69
Optiontopaytaxu/s10isvalidonlytillall
conditionsarefulfilled.
Conditions–Notsatisfiedthenwithdrawalis
madeinFORMGSTCMP04within7daysof
violation.
AndliabletopaytaxU/s9ofCGSTAct
Validity of Composition Levy

70. 70
Govt on GST Council recommendation in public interest
may exempt:-
By notification,
exempt partly or
wholly
By special order
under
exceptional
nature
By Inserting
explanation
within one year
of issue with
retrospective
effect
Sec 11 of CGST Power to Exempt

71. 71
Doubts / Questions ?

72. 72
CA Ganesh Prabhu Balakumar
Partner
C.Ramasamy & B.Srinivasan
Chartered Accountants, Chennai.
Mobile: [phone]
E-Mail :[email protected]
[email protected]