Supply under GST (goods and services tax)

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

2
Introduction of GST
 Goods & Services Tax
 Dual GST : CGST/SGST Or IGST
 Single Tax payable on Taxable Supply
 Applicability - Whole India except Jammu &
Kashmir
 Force – Notification in the Official Gazette

3
India (Sec 2(56) of CGST Act)
 Territory of India
 Territorial waters
 Seabed & sub-Soil
 Continental Shelf
 Exclusive Economic Zones
 Maritime Zones
 Air Spaces above Territory
& waters

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

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

8
Person (Sec 2(84) of CGST Act)
Includes
a) An individual
b) A Hindu Undivided Family
c) A company
d) A firm
e) A Limited Liability Partnership
f) An association of persons or a body of individuals,
whether incorporated or not, in India or outside India
g) Any corporation established by or under any Central Act,
State Act or Provincial Act or a Government Company as
defined in Section 2(45) of the Companies Act, 2013
h) Any body corporate incorporated by or under the laws of
a country outside India.

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
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
Recipient (Sec 2(93) of CGST Act)
In relation to any goods or services or both
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
Recipient (Sec 2(93) of CGST Act)
• Any reference to a Person to whom a Supply is made
shall be construed as a reference to the Recipient of the
Supply and
• Shall include an Agent acting as such on behalf of the
Recipient in relation to the Goods or Services or Both
Supplied

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
Non – Resident Taxable Person - Sec 2(77)
Means Any Person
• Who occasionally undertakes transactions
involving supply of Goods or Services or Both,
whether as principal or Agent or in any other
capacity
• But who has no fixed place of business or
residence in India

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
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
Agriculturist (Sec 2(7) of CGST Act)
Means an Individual or a HUF who undertakes cultivation of
Land –
a)By Own Labour, or
b)By the Labour of Family, or
c)By Servants on Wages payable in cash or Kind or by
hired labour under personal supervision or the
personal supervision of any member of the family

18
Family (Sec 2(49) of CGST Act)
Means
a)The Spouse and children of the person, and
b)The parents, grand-parents, brothers and sisters of the
person if they are wholly or mainly dependent on the
said person

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
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)

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
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
ancillary to 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
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
Business Vertical-Sec 2(18) of CGST Act
Means a distinguishable component of an enterprise that is
engaged in the supply of individual goods or services or a group of
related goods or services which is subject to risks and returns that
are different from those of the other business verticals.
Explanation.––For the purposes of this clause, factors that should be
considered in determining whether goods or services are related
include––
(a) the nature of the goods or services;
(b) the nature of the production processes;
(c) the type or class of customers for the goods or services;
(d) the methods used to distribute the goods or supply of services;
(e) the nature of regulatory environment (wherever applicable),
including banking, insurance, or public utilities

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
Location of the Recipient of Services Sec 2(70)
Where a supply is received
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
Location of the Supplier of Services Sec 2(71)
Where a supply is made
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
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 Invoice issued 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
Non Taxable Territory – Sec 2(79)
• The territory which is outside the Taxable Territory
Taxable Territory - Sec 2(109) of CGST Act
• The territory to which the Provisions of this Act Apply
• Sec 1 of CGST Act
• Extents to Whole of India except J & K
• Taxable Territory Vs India

31
Turnover in State / UT- Sec 2(112) of CGST Act
• The Aggregate value of all Taxable Supplies (Excluding the
value of Inward Supplies on which Tax is payable by a person
on Reverse Charge basis)
• Exempt supplies made within state or Union Territory by a
Taxable Person, export of Goods or Services or Both
• Inter-State supplies of Goods or Services or Both made from
the State or UT by the taxable person but excludes Central
Tax, State Tax, Union Territory Tax, Integrated Tax and Cess

32
Aggregate Turnover (Sec 2(84) of CGST Act)
 Means the aggregate value 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 excludes central
tax, State tax, Union territory tax, integrated tax and cess;

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 thereofmade 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
Principal Supply (Sec 2(90) of CGST Act)
 Means the supply of goods or services which
constitutes
 the predominant element of 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
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
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 basis and
 includes supply of such goods as the Government may,
subject to such conditions, as it may, by notification,
specify

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

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
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
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
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

45
Consideration – Sec 2(31) of CGST Act
In relation to the supply of goods or services or both includes–
(a) any payment made or to be made, whether in money or
otherwise, in respect of, in response to, or for the inducement
of, the supply of goods or services or both, whether by the
recipient or by any other person
(b) the monetary value of any act or forbearance, in respect of,
in response to, or for the inducement of, the supply of goods or
services or both, whether by the recipient or by any other
person but shall not include any subsidy given by the Central
Government or a State Government
A deposit given in respect of the supply of goods or services
or both shall not be considered as payment made for such
supply unless the supplier applies such deposit as
consideration for the said supply

46
Works Contract – Sec 2(119) of CGST Act
• Means a contract for building, construction, fabrication,
completion, erection, installation, fitting out,
improvement, modification, repair, maintenance,
renovation, alteration or commissioning of any
immovable property
• wherein transfer of property in goods (whether as
goods or in some other form) is involved in the
execution of such contract

47
Voucher – Sec 2(118) of CGST Act
• Means an instrument where there is an obligation to
accept it as consideration or part consideration for a
supply of goods or services or both and
• where the goods or services or both to be supplied or the
identities of their potential
• suppliers are either indicated on the instrument itself or
in related documentation, including the terms and
conditions of use of such instrument

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
Audit – Sec 2(13) of CGST Act
• Means the examination of records, returns and other
documents maintained or furnished by the registered
person under this Act or the rules made
• There under or under any other law for the time being in
force to verify the correctness of turnover declared, taxes
paid, refund claimed and input tax credit availed, and to
• assess his compliance with the provisions of this Act or
the rules made thereunder

50
Adjudicating Authority – Sec 2(4)
• Means any authority, appointed or authorised to pass
• any order or decision under this Act,
• but does not include the Central Board of Excise and
Customs, the Revisional Authority, the Authority for
Advance Ruling, the Appellate Authority for Advance
Ruling, the Appellate Authority and the Appellate
Tribunal

51
Officers under GST(Sec 3 of CGST Act)
• Government – by notification – Appoints the following classes
of Officers
• Principal Chief Commissioners / Principal Director of CT
• Principal Commissioners or Principal Additional Directors of
general CT.
• Commissioners or Additional Directors of general CT.
• Additional Commissioners or Additional Directors of CT.
• Joint/Deputy Commissioners or Joint/Deputy Directors of CT.
• Assistant Commissioners or Assistant Directors of CT.
• Any other class of Officers as it may deem fit

52
Appointment & Powers of Officers (Sec 4 & 5)
• Board Appoints officers in Addition to Sec 3
• Board may, by order Authorize any officer to appoint Officer
below the Rank of Assistant Commissioner of Central Tax for
the Administration of the Act
• An officer of Central Tax may exercise the powers and
discharge the duties conferred or imposed under this Act –
Officer who is Subordinate to him.
• The Commissioner may, 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
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) PO under the SGST/UGST Act has initiated any proceedings
on subject matter, no proceedings shall be initiated by the proper
Officer under CGST Act on same subject matter
(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
Sch 1 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
Sch 2 Activities
Section 7 of CGST Act - Supply

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
• 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
Sch II Supply of Goods or Services

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

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

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)
Sch III – Neither SoG or SoS

60
• Tax Levy of CGST (SGST Levy – Respective SGST Act)
• All Intra-State Supply of G or S or B – Except Liquor
• Value determined as per Sec 15 of CGST Act
• Rate Notified by CG, SG
• Not Exceeding 20%
• Collected in Manner Prescribed (Sec 12 & 13)
Sec 9 (1) Levy of CGST & SGSTSec 9 (1) Levy of CGST & SGST

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
• 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
• CG & SG on Recommendations of GST Council
• Specify category of Services (Goods – NA)
• Tax on which shall be paid by E-Commerce Operator
• If such services are supplied through them
• All provisions apply as if he is Supplier of such Goods
or Services.
Sec 9 (5) Levy of CGST & SGSTSec 9 (5) Levy of CGST & SGST –– EComECom

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
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
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
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
 Neither a CTP or a NRTP.
 Goods held in Stock as on AD are not
 Inter State or Branch Transfer
 Imported Purchase
 Unregistered Person. (pay tax under (3) & (4) of
Sec 9 of CGST Act)
 Mention the word CTP - on every Bill, Notices &
on Signboard
 Need not file a fresh intimation every year.
Conditions & Restrictions

69
 Option to pay tax u/s 10 is valid only till all
conditions are fulfilled.
 Conditions – Not satisfied then withdrawal is
made in FORM GST CMP 04 within 7 days of
violation.
And liable to pay tax U/s 9 of CGST Act
Validity of Composition Levy

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

72
CA Ganesh Prabhu Balakumar
Partner
C.Ramasamy & B.Srinivasan
Chartered Accountants, Chennai.
Mobile: +91 98404 71139
E- Mail : ganeshbrabhu.b@crbs.in
ganeshprabhu.b@gmail.com

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