lexicon demant Definition of Supply: Under Section 7 of the CGST Act, "supply"

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Taxable event under GST Law is “Supply of Goods & Services or both”. The definition is inclusiveTaxable event under GST Law is “Supply of Goods & Services or both”. The definition is inclusiveTaxable event under GST Law is “Supply of Goods & Services or both”. The definition is inclusiveTaxable event under GST Law is “Supply of Goods & Services or both”. The definition is inclusive

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Under the GST regime, the supply of goods or services is the core taxable event, and understanding what constitutes "supply" is essential to determine the applicability of GST, compliance requirements, and the correct levy of tax. This simplified, consumption-based approach ensures a seamless flow of tax credits across the supply chain, enhancing transparency and reducing tax burdens for both businesses and consumers.

The taxable event is the supply of goods or services or both. This "supply" forms the basis for charging GST and triggers the tax liability. The GST framework is designed to ensure that tax is levied at each point of transaction within the supply chain, ultimately borne by the end consumer.

Key Aspects of the Taxable Event – "Supply":

1. Definition of Supply: Under Section 7 of the CGST Act, "supply" encompasses all forms of transactions, such as sale, transfer, barter, exchange, license, rental, lease, or disposal, made for a consideration in the course of business.
2. Scope of Supply:
• Interstate and Intrastate Supplies: Supplies made within a state (intrastate) attract Central GST (CGST) and State GST (SGST), while supplies between states (interstate) attract Integrated GST (IGST).
• Supply without Consideration: In some cases, certain activities or transactions, even if made without consideration, are treated as supplies, like gifts above a certain limit from an employer to an employee, as per Schedule I of the CGST Act.
3. Taxable Supplies vs. Exempt/Non-Taxable Supplies: Only taxable supplies (not exempted under the law) attract GST, while certain goods and services may be zero-rated (exports) or exempted (like basic food items or healthcare services).
4. Deemed Supplies: Some transactions are deemed as supplies under GST even if there is no transfer of ownership or consideration, such as the transfer of business assets or certain transactions between related or distinct persons.