DIFFERENCE BETWEEN SUPPLY OF GOODS AND TAXABLE SUPPLY OF GOODS

Supply of goods and services may attract or may not attract tax. There could be different parameters in determining whether a particular supply of goods or services fall under the taxable goods or services. There could be exemption on turnover threshold, free supply of goods and services, goods and services not fall under GST tax payment etc.

All taxable supply of goods and services are supply of goods and services. However, all supply of goods and services are not taxable goods and services.

How to define Supply of goods in terms of GST in India?

As per GST Law, the term ‘supply’ is wide in its import and includes 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. It also includes import of service. The GST law in India also provides for including certain transactions made without consideration within the scope of supply.

What are the elements to be satisfied to call (constitute) ‘supply of goods’ as per GST Law in India?

As per GST Law, there are mainly six elements that determine supply of goods. They are supply of goods and / or services, supply is for a consideration, supply is made in the course or furtherance of business, supply is made in the taxable territory, supply is a taxable supply and Supply is made by a taxable person. Apart from these criteria, as per GST Law in India, under certain circumstances such as importation of service (Section 3(1) (b)) or supplies made without consideration, specified under Schedule-I of GST Law, where one or more ingredients specified above are not satisfied, it shall still be treated as supply under GST Law.

The meaning of taxable supply of goods and services

Now let us discuss about taxable supply of goods and services. How to define taxable supply under GST Law?

According to GST Law, a ‘taxable supply’ means a supply of goods and / or services which is chargeable to good and services tax under the GST Act.

The above information explains about the difference between taxable supply of goods and services and supply of goods and services under GST Law in India. If you like to share your view about taxable supply of goods and supply of goods, share below your comments.

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