How to differentiate Zero rated supply with Principle of supply?
What is Zero rated supply? How does Principle of supply work under GST regime? What are the difference between Zero rated supply and Principle of supply?
Under GST system, the following information explains about Zero rated supplyandPrinciple of supply.
“Zero rated supply” means any of the following supplies of goods or services or both
- Export of goods or services or both; or
- Supply of goods or services or both to a Special Economic Zone developer or a Special Economic Zone unit.
Principle of supply
The term, “supply” has been inclusively defined in the Act. The meaning and scope of supply under GST can be understood in terms of following six parameters, which can be adopted to characterize a transaction as supply:
- Supply of goods or services. Supply of anything other than goods or services does not attract GST
- Supply should be made for a consideration
- Supply should be made in the course or furtherance of business
- Supply should be made by a taxable person
- Supply should be a taxable supply
- Supply should be made within the taxable territory
As per GST terms, Zero rated supply means “Zero rated supply” means any of the following supplies of goods or services or both, namely:––
- Export of goods or services or both; or
- Supply of goods or services or both to a Special Economic Zone developer or a Special Economic Zone unit.andPrinciple of supply means The taxable event in GST is supply of goods or services or both. Various taxable events like manufacture, sale, rendering of service, purchase, entry into a territory of state etc. have been done away with in favour of just one event i.e. supply
The details about Zero rated supplyand Principle of supply with simple language from GST terms have been mentioned in this web blog separately. I suggest you to read these articles on Zero rated supply and Principle of supply , so as to enable you to have a clear idea on these GST terms.
For your immediate reference, We give below web links on Zero rated supply and Principle of supply separately below. You may kindly read the below links to know more about Principle of supply and Zero rated supply.
Term Principle of supply under GST
The above information easily explains about Principle of supply andZero rated supply .
I hope, you have satisfied with the difference between Zero rated supply and Principle of supply explained above. Do you have different thought on difference between Principle of supply and Zero rated supply ?
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