Supply Under Gst
Supply Under GST
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.