TMI BlogMeaning and Scope of SupplyX X X X Extracts X X X X X X X X Extracts X X X X ..... sposal made or agreed to be made for a consideration by a person in the course or furtherance of business. It also includes import of service. The GST law also provides for including certain transactions made without consideration within the scope of supply. Q 3. What is a taxable supply? Ans. A taxable supply means a supply of goods or services or both which is chargeable to goods and services tax under the GST Act. Q 4. What are the necessary elements that constitute supply under CGST/SGST Act? Ans. In order to constitute a supply , the following elements are required to be satisfied, i.e.- (i) the activity involves supply of goods or services or both; (ii) the supply is for a consideration unless ot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taxable supply of goods or services or both in terms of Section 22 of the CGST Act. However, intra-state self-supplies are not taxable subject to not opting for registration as business vertical. Q 8. Whether transfer of title and/or possession is necessary for a transaction to constitute supply of goods? Ans. Title as well as possession both have to be transferred for a transaction to be considered as a supply of goods. In case title is not transferred, the transaction would be treated as supply of service in terms of Schedule II (1) (b). In some cases, possession may be transferred immediately but title may be transferred at a future date like in case of sale on approval basis or hire purchase arrangement. Such transactions w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder GST even where no consideration is involved. Q 12. Whether provision of service or goods by a club or association or society to its members will be treated as supply or not? Ans. Yes. Provision of facilities by a club, association, society or any such body to its members shall be treated as supply. This is included in the definition of business in section 2(17) of CGST/SGST Act. Q 13. What are the different types of supplies under the GST law? Ans. (i) Taxable and exempt supplies. (ii) Inter-State and Intra-State supplies, (iii) Composite and mixed supplies and (iv) Zero rated supplies. Q 14. What are inter-state supplies and intra-state supplies? Ans . Inter-state and intra-state supplies have sp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... beit at a future date. Q 19. What is a Composite Supply under CGST/ SGST/UTGST Act? Ans. Composite Supply means a supply made by a taxable person to a recipient comprising two or more supplies of goods or services, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply. For example, where goods are packed and transported with insurance, the supply of goods, packing materials, transport and insurance is a composite supply and supply of goods is the principal supply. Q 20. How will tax liability on a composite supply be determined under GST? Ans. A composite supply comprising two or more supplies, one of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , actionable claims other than lottery, betting and gambling shall be treated neither a supply of goods or supply of services. Q 24. What is meant by zero rated supply under GST? Ans. Zero rated supply means export of goods and/or services or supply of goods and/or services to a SEZ developer or a SEZ Unit. Q 25. Will import of services without consideration be taxable under GST? Ans. As a general principle, import of services without consideration will not be considered as supply under GST in terms of Section 7. However, import 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, even without consideration will be treated ..... X X X X Extracts X X X X X X X X Extracts X X X X
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