Definition of Supply under GST, Meaning of Supply Under GST. Goods and Services Tax (GST) envisages two types of supply, intra state and interstate. The following table illustrates the nature of supply. It is important to know whether a given supply is interstate or intra-state. The tax or taxes payable are different in each case. For example, IGST is payable for interstate supply and CGST +SGST is payable for intra-state supply
Definition of Supply under GSTDefinition of ‘supply’ Under section 2(92) read with section 3 ‘supply’ includes all forms of supply of goods and/or services such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business. Schedule I specified the supply.
1. Supply includes(a) 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, (b) importation of service, whether or not for a consideration and whether or not in the course or furtherance of business, and
- (a) activities or transactions specified in schedule III; or
- (b) activities or transactions undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities as specified in Schedule IV,
- (a) a supply of goods and not as a supply of services; or
- (b) a supply of services and not as a supply of goods; or
- (c) neither a supply of goods nor a supply of services.
- (a) a composite supply comprising two or more supplies, one of which is a principal supply, shall be treated as a supply of such principal supply;
- (b) a mixed supply comprising two or more supplies shall be treated as supply of that particular supply which attracts the highest rate of tax.
What is not intra-state supply?
- (i) Supplies to and by SEZ
- (ii) Imported goods till they cross the customs frontiers of India
- (iii) Supplies made to a foreign tourist taking the goods out of India
- (i) Supplies received from SEZ unit in Noida to Domestic Tariff Area
- (ii) Supplies made to SEZ developer in Kandla from Ahmedabad
- (iii) Goods imported from France
- (iv) Supplier is in Delhi and supply is made in Switzerland
- (v) Supplier is within Rajasthan and supply is made in Punjab, place of supply being Punjab
- (vi) Supplier is in Chandigarh (UT) and supply is made in Himachal Pradesh
Supply in Territorial Waters [Section 9 IGST Act, 2017]
- (a) where the location of the supplier is in the territorial waters, the location of such supplier; or
- (b) where the place of supply is in the territorial waters, the place of supply,