SUPPLY
Taxable Event
SUPPLY
Exceptions:
SECTION 7(1)(a) of GST Act 2017
Section 7(1)(b) of CGST Act, 2017,
Import of services for a consideration whether or not in the
course or Furtherance of business:
Section 7(1)(c) of the CGST Act, 2017,
Activities specified in schedule I, made or agreed to be made without a
Consideration:
1. Permanent transfer or disposal of business assets where input tax
credit has been availed on such assets.
2. Supply of goods or services or both between related persons
or between distinct persons as specified in section 25, when made in
the course or furtherance of business: Provided that gifts not
exceeding Rs.50,000/- in value in a financial year by an employer to an
employee shall not be treated as supply of goods or services or both.
3. Supply of goods—
(a) by a principal to his agent where the agent undertakes to supply
such goods on behalf of the principal; or
(b) by an agent to his principal where the agent undertakes to
receive such goods on behalf of the principal.
4. Import of services by a person from a related person or from any of
his other establishments outside India, in the course or furtherance
of business
1. Supply between related persons or
distinct persons
Related Person
A person who is under influence of another person is called
a related person like members of the same family or subsidiaries of a
group company etc.
Whether
all the directors including managing directors is an
employee of the company?
Contractual GST is Who is liable
Director relationship liable to to pay
of master and pay
servant
Managing Director NO YES Company
(under RCM)
Whole time director YES NO NIL
Executive director YES NO NIL
No executive director NO YES Company
(under RCM)
Independent director / NO YES Company
nominee director (under RCM)
Fringe benefits - GST
Gift not exceeding Rs.50,000 in value in a financial year by an
employer to employee shall not constitute supply of goods or
services or b“.oth.
2. Supply between Principal & Agent
3. Importation of service
SCHEDULE II – Sec 7(1)(d)
Activities to be treated as supply of goods or supply of services
SCHEDULE II – Sec 7(1)(d)
SCHEDULE II – Sec 7(1)(d)
SCHEDULE II – Sec 7(1)(d)
Non-taxable Supplies under CGST Act, 2017
[Section 7(2)]
Negative list (Schedule III)
SUPPLY
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TIME OF SUPPLY - GOODS
SUPPLY involves various elements
In case of GOODS :-
TIME OF SUPPLY – GOODS [ SECTION 12]
SL CASE DUE DATE FOR ISSUE OF
NO TAX INVOICE
1 Normally Before the provision of service or
within 30 days(45 days for
banks, insurance co, Nbfc) from
the date of supply of service
2 Taxable supplies between Before or at the time of recording
distinct persons - only in case in BOA or before expiry of the
of Insurance co/banking quarter in which supply was
co/Financial institutional made
including NBFC/telecom
co/notified suppliers:-
3 Continuous supply (i) On/before the due date
of payment
(ii) Actual receipt of payment if
due date not known
(iii) On/before date of completion
of milestone event when
payment linked to completion of
Event
4 Cessation of supply before At the time when such supply
completion ceases
Time limit for issuance of invoice for supply of goods
under section 31
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TIME OF SUPPLY - SERVICE
SUPPLY involves various elements
In case of Services :-
1.Advance payment
2.Invoicing
3.Part performance of service
5.Making balance payment
6.Making entry in books
At which point does one has to pay GST and at what rate???
Time of supply fixes the point in time when the liability
to pay tax arises
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VALUE OF SUPPLY
Value of supply means the value on which GST is
levied and collected
TRANSACTION VALUE as per sec 15(1)
Inclusions in value u/s 15(2)
⮚ Taxes other than GST (TCS under Income tax excluded)
⮚ Third party payments made by recipient in relation to supply which
supplier was liable to pay and were not included in price
⮚ Incidental expenses – Commission, packing expenses, freight &
insurance etc charged to recipient
⮚ Subsidies other than Govt Subsidies
⮚ Interest/late fee/penalty for delay in payment of consideration
Exclusions in Value u/s 15(2)
⮚ Discounts- subject to conditions
SUPPLIES WHERE VALUE CANNOT BE DETERMINED u/s 15(1) & NOTIFIED
SUPPLIES [SEC 15(4) & (5) ]
If the value of a supply of goods and/or services cannot be worked
out by the foregoing methods, its value will be 110% of the cost of
production/ manufacture/acquisition of such goods or cost of
provision of such services.
1. PURCHASE /SALE OF FOREIGN CURRENCY INCLUDING MONEY CHANGING
Particulars Value of Supply
RBI ref. Rate available Diff between Buying Rate / Selling rate & RBI ref rate
RBI ref. Rate not available 1% of gross amt of Indian Rs provided/received
1% of the lesser of the two amounts when converted to Indian Rupees @ RBI ref
rate
Method 2
2. BOOKING OF TICKETS FOR AIR TRAVEL BY AIR TRAVEL AGENT
3. LIFE INSURANCE BUSINESS
SECOND HAND GOODS
CONDITIONS :-
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PLACE OF SUPPLY-GOODS
PLACE OF SUPPLY IN CASE OF GOODS
Following topics under it are as follows:
1. Movement of Goods
2. No movement of Goods
3. Goods are assembled or installed at Site
4. Goods supplied on a vessel/ conveyance
5. Place of Supply of goods cannot be determined
6. Imports and exports
PLACE OF SUPPLY
PLACE OF SUPPLY IN CASE OF GOODS
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