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What is Supply as Per Section 3 of Model GST Law

1) General Meaning-
(ST-BEL-RLD)
Sale, Transfer, Barter, Exchange, Licence, Rental, Lease, Disposal
A) Supplies Should be made by supplier who is engaged in Business (Defined U/S 2(17))
B) Should Involve Delivery of Goods or services to another Person
C) Supplier should get something in return from the Recipient, which may be money or money’s worth
D) Transfer of Property in goods From supplier to recipient is Not Necessary
Note- Under this clause, it is essential that all the above forms of transactions including the extended and generic meaning given to ‘supply’ should be made for a ‘consideration’.

2) Supplies should be in the course of furtherance of Business- Like sale of goods in an exhibition, participation in a trade fair, warranty supplies, supply of free samples, sale of used assets, etc would be in the course of business.

3) Importation of Services whether or not for Consideration and whether or not in the course of furtherance of Business.
Note- Means that import of services even for personal use will be taxable to GST subject to threshold Limit to be fixed.

4) Schedule-1 Transactions- ie transaction without Consideration
A) Permanent Transfer of Business Asset eg Car Given to employee for official use is given permanently to him after 3 years

B) Disposal Of Business Assets

C) Temporary use of Business Asset for Person Use like car of company use to show movie to family. Banquet hall owner do the wedding of his son in it without consideration, Car Fleet owner uses car for personal purpose.

D) * Services Put to A Personal or non business Use*- Architect Designing his own house, Ca Handing Income tax case of his father

E) Asset Retained After Deregistration- Person closes business and surrender registration then any business asset retained by him will be treated supply.
Note- Even if the Tax Department Suo Moto Delist such person than also this provision will apply.

F) Supply by One Person to another Person in course of furtherance of business- Free Sample, Gift etc

5) Agency Transaction Supply of goods or services on behalf of Principle for commission or brokerage

6) * Services Provided Under a brand Name* By Aggregator Like Ola, Uber. In these case Ola and Uber will be liable to pay taxes and not the individual taxi owner.

7) Notified by CG or SG
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Compiled By
CA JAIN ALOK
9899259011
NIRC Member

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