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Supply Under Gst

Ankit0

Supply under GST is defined as the movement of goods or services from a taxable person to another taxable person in the course of business. It is a taxable event that triggers the obligation to charge GST.

Types of Supply:

  • Supplies of Goods: Sale of tangible goods, such as vehicles, electronics, and raw materials.
  • Supplies of Services: Provision of services, such as transportation, telecommunication, and financial services.
  • Supplies of Goods and Services: Sale of goods and services simultaneously, such as the sale of goods with installation services.

GST Rate:

The GST rate applicable to a supply depends on the nature of the supply. The most common rates are:

  • 18%: Standard rate applicable to most supplies of goods and services.
  • 12%: Rate for certain specified goods and services, such as food and beverages.
  • 5%: Rate for certain essential goods and services, such as petroleum products and medicines.

GST Registration:

A person who exceeds the threshold limit of Rs. 20 lakh in a financial year or is required to charge GST on supplies exceeding Rs. 20 lakh in a financial year is obligated to register for GST.

GST Invoice:

A GST invoice is a document issued by a taxable person to a customer that details the supply of goods or services and the GST charged. It is a mandatory document for all taxable supplies.

GST Returns:

GST payers are required to file returns regularly to the government in the prescribed format. The frequency of filing returns depends on the turnover of the business.

Key Points:

  • Supply under GST is the movement of goods or services from a taxable person to another taxable person in the course of business.
  • The GST rate applicable depends on the nature of the supply.
  • GST registration is mandatory for persons exceeding the threshold limit or required to charge GST on supplies exceeding the threshold.
  • GST invoices are mandatory for all taxable supplies.
  • GST returns are required to be filed regularly to the government.

FAQs

  1. What is supply under GST Section 7?

    Supply under Section 7 of the GST Act refers to the sale, transfer, exchange, or any form of disposal of goods or services for consideration. It also includes imports, barter, and certain activities specified in Schedule I of the GST Act, even if done without consideration.

  2. What do you mean by supply in GST?

    In GST, supply refers to the provision of goods or services by a taxable person in the course of business. It includes all types of transactions like sales, transfers, barters, and leases that are done for a consideration.

  3. What is the concept of supply under GST Section 7?

    Section 7 defines “supply” broadly, covering transactions like sales, barter, transfers, and leases, as well as certain activities done without consideration (e.g., transfers between branches), if they are in the course of business.

  4. What is the value of supply under GST?

    The value of supply under GST is the transaction value, i.e., the price actually paid or payable for the supply of goods or services, including all taxes, duties, or fees, except GST itself.

Disclaimer

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