GST Chapter: Supply Under GST

Introduction to Supply Under GST

• Taxable event defined as any transaction causing a tax consequence, central to taxation systems.
• GST simplifies the framework by introducing "Supply" as the sole taxable event.
• Previous tax regimes had multiple taxable events (e.g., manufacture, sale) which led to legal complexities.

Key Learning Outcomes

• Comprehend the concept of taxable event under GST.
• Analyze the scope and meaning of supply.
• Identify transactions classified as supply, including those without consideration.
• Differentiate between supply of goods and supply of services.
• Explain and apply knowledge of composite and mixed supplies.

Overview of Supply

• Supply defined broadly as the transfer of goods and/or services for consideration.
• Importing services treated as supply regardless of business purpose.
• Certain transactions are classified as neither goods nor services.
• Specific activities must be categorized as supply of either goods or services.

Relevant Definitions

• Goods: Movable property (excluding money/securities), encompassing actionable claims, crops, and items attached to land, severed before supply.
• Services: Anything other than goods, money, and securities; includes monetary transactions and transformation activities, with consideration charged for separate services rendered.
• Principal: The individual on whose behalf an agent acts in transactions.

Changes Under GST

• GST replaces various earlier indirect tax concepts (e.g., sales tax, service tax) with a unified taxable event.
• Taxation under GST occurs on the total value of supply, contrasting with previous methods of independent taxation based on manufacturing or selling.
• The comprehensive taxable event framework led to a reduced scope for litigation and interpretation queries that troubled previous tax regimes.