Questions and Answers
What is the taxable event under GST?
Supply
Which options represent activities treated as supply under GST?
Under GST, the mere provision of services without consideration is treated as supply.
True
What does the term 'principal' refer to in the context of GST?
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Goods under GST means every kind of movable property other than ___ and ___ .
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What is an example of a composite supply under GST?
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Which of the following is NOT considered as taxable under GST?
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Study Notes
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.
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Description
This quiz covers the essentials of Supply under GST as per the CGST Act, 2017. It includes key concepts, examples, illustrations, and questions that help you understand the taxable events and implications of GST. Prepare to assess your comprehension of GST regulations and their applications.
