What is Supply of Goods under GST

Meaning of Supply of Goods

 

The details about Supply of Goods are explained here. 

Supply of Goods:

Introduction:

The most awaited GST is all about supply as it merger sale and service in the term supply. The learned author aims at enlightening readers about the concept and importance of supply.

Meaning and scope of supply

The law provides for the definition and scope of apply. In simple terms, supply includes all the following –

  • All forms of supply of goods and/or services 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
    • Importation of service, whether or not for a consideration and whether or not in the course or furtherance of business,
    • A supply specified in schedule I, made or agreed to be made without a consideration.
    • Schedule I – All the following matters will be considered as supply without consideration
    • Permanent transfer or disposal of business assets.
    • Temporary application of business assets to a private or non-business use.
    • Services put to a private non-business use.
    • Assets retained after deregistration.
    • Supply of goods and/or services by a taxable person to another taxable or non-taxable person in the course of furtherance of business.

However, the supply of goods by a registered taxable person to a job worker in terms of section 43A shall not be treated as supply of good

Supply as mentioned in Schedule II

Schedule II, in respect of matters mentioned therein, shall apply for determining what is, or is to be treated as a supply of goods or a supply of services.

  • Transfer
  • Transfer of the title in goods is a supply of goods.
  • Transfer of goods or of right in goods or of undivided share in goods without the transfer of title thereof, is a supply of services.
  • Transfer of title in goods under an agreement which stipulates that property in goods will pass at a future date upon payment of full consideration as agreed, is a supply of goods.
  • Land and Building
  • Lease, tenancy, easement, license to occupy land is a supply of services.
  • Lease or letting out of the building including a commercial, industrial or residential complex for business or commerce, either wholly or partly, is a supply of services.
  • Treatment or process
  • Treatment or process which is being applied to another person’s goods is a supply of services.
  • Transfer of business assets
  • Goods forming part of the assets of a business when transferred or disposed of so as no longer to form part of those assets, whether or not for a consideration, such transfer or disposal is a supply of goods.
  • Where, by or under the direction of a person carrying on a business, goods held or used for the purposes of the business are put to any private use or are used, or made available to any person for use, for any purpose other than a purpose of the business, whether or not for a consideration, the usage or making available of such goods is a supply of services.
  • Where any goods, forming part of the business assets of a taxable person, are sold by any other person who has the power to do so to recover any debt owed by the taxable person, the goods shall be deemed to be supplied by the taxable person in the course or furtherance of his business.
  • Where any person ceases to be a taxable person, any goods forming part of the assets of any business carried on by him shall be deemed to be supplied by him in the course or the furtherance of his business immediately before he ceases to be a taxable person, unless-

                     i.             the business is transferred as a going concern to another person; or

                   ii.            the business is carried on by a personal representative who is deemed to be a taxable person.

The information provided here is about Supply of Goods.  If you would you like to add more information about Supply of Goods, share below your thoughts.

 

 

 


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