{"id":3985,"date":"2020-03-22T06:11:53","date_gmt":"2020-03-22T06:11:53","guid":{"rendered":"https:\/\/commerceiets.com\/?p=3985"},"modified":"2020-03-22T06:11:53","modified_gmt":"2020-03-22T06:11:53","slug":"taxable-supply","status":"publish","type":"post","link":"https:\/\/commerceiets.com\/taxable-supply\/","title":{"rendered":"TAXABLE SUPPLY"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/commerceiets.com\/taxable-supply\/#TAXABLE_SUPPLY_UNDER_GST\" title=\"TAXABLE\nSUPPLY UNDER GST\">TAXABLE\nSUPPLY UNDER GST<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/commerceiets.com\/taxable-supply\/#ELEMENTS_OF_TAXABLE_SUPPLY\" title=\"ELEMENTS OF TAXABLE\nSUPPLY\">ELEMENTS OF TAXABLE\nSUPPLY<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/commerceiets.com\/taxable-supply\/#FEATURES_OF_TAXABLE_SUPPLY_UNDER_GST\" title=\"FEATURES OF TAXABLE SUPPLY UNDER\nGST\">FEATURES OF TAXABLE SUPPLY UNDER\nGST<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/commerceiets.com\/taxable-supply\/#TYPES_OF_SUPPLY\" title=\"TYPES OF SUPPLY\">TYPES OF SUPPLY<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/commerceiets.com\/taxable-supply\/#INTRA-STATE_SUPPLY\" title=\"INTRA-STATE SUPPLY\">INTRA-STATE SUPPLY<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/commerceiets.com\/taxable-supply\/#_Exceptions_%E2%80%93\" title=\"&nbsp;Exceptions \u2013\">&nbsp;Exceptions \u2013<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/commerceiets.com\/taxable-supply\/#TERRITORIAL_WATERS\" title=\"TERRITORIAL WATERS\">TERRITORIAL WATERS<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/commerceiets.com\/taxable-supply\/#INTER-STATE_SUPPLY\" title=\"INTER-STATE SUPPLY\">INTER-STATE SUPPLY<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/commerceiets.com\/taxable-supply\/#COMPOSITE_SUPPLY\" title=\"COMPOSITE SUPPLY\">COMPOSITE SUPPLY<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/commerceiets.com\/taxable-supply\/#MIXED_SUPPLY\" title=\"MIXED SUPPLY\">MIXED SUPPLY<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/commerceiets.com\/taxable-supply\/#CONTINUOUS_SUPPLY\" title=\"CONTINUOUS SUPPLY\">CONTINUOUS SUPPLY<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/commerceiets.com\/taxable-supply\/#INWARD_SUPPLY\" title=\"INWARD SUPPLY\">INWARD SUPPLY<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/commerceiets.com\/taxable-supply\/#OUTWARD_SUPPLY\" title=\"OUTWARD SUPPLY\">OUTWARD SUPPLY<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/commerceiets.com\/taxable-supply\/#EXEMPT_SUPPLY\" title=\"EXEMPT SUPPLY\">EXEMPT SUPPLY<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/commerceiets.com\/taxable-supply\/#ZERO-RATED_SUPPLY\" title=\"ZERO-RATED SUPPLY\">ZERO-RATED SUPPLY<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/commerceiets.com\/taxable-supply\/#NON-TAXABLE_SUPPLY\" title=\"NON-TAXABLE SUPPLY\">NON-TAXABLE SUPPLY<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/commerceiets.com\/taxable-supply\/#TRANSACTIONS_DO_NOT_COME_UNDER_PURVIEW_OF_GST\" title=\"TRANSACTIONS\nDO NOT COME UNDER PURVIEW OF GST\">TRANSACTIONS\nDO NOT COME UNDER PURVIEW OF GST<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"has-text-align-center wp-block-heading\" id=\"taxable-supply-under-gst\"><span class=\"ez-toc-section\" id=\"TAXABLE_SUPPLY_UNDER_GST\"><\/span><strong>TAXABLE\nSUPPLY UNDER GST<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Supply on which tax shall be paid under <a href=\"https:\/\/commerceiets.com\/gst\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"GST (opens in a new tab)\">GST<\/a> is known as taxable supply. Taxable Supply includes sale, transfer, exchange, barter, license, rental, lease and disposal. If a person undertakes either of these transactions during the course or furtherance of business for consideration, it&nbsp;will be covered&nbsp;under the meaning of Supply under GST.<\/p>\n\n\n\n<p><strong>Sale:<\/strong> Transferring\nthe property in goods from one to another, upon valuable consideration. <\/p>\n\n\n\n<p><strong>Transfer:<\/strong> Any transfer of goods or right in goods or of undivided\nshare in goods without transfer of title thereof. <\/p>\n\n\n\n<p><strong>Barter:<\/strong> To exchange one commodity for another without use of\nmoney. <\/p>\n\n\n\n<p><strong>Exchange:<\/strong> To swap, to part with, give or transfer for an\nequivalent with the use of money. <\/p>\n\n\n\n<p><strong>Licence:<\/strong> Permission granted by competent authority to exercise\ncertain privileges without such authorization the activity would have\nconstituted as an illegal act. <\/p>\n\n\n\n<p><strong>Rental:<\/strong> Periodical payment for the use of another property. <\/p>\n\n\n\n<p><strong>Lease:<\/strong> Contractual agreement by which one party conveys an\nestate in property to another party, for a limited period, subject to various\nconditions, in exchange for something of value, but still remain ownership. <\/p>\n\n\n\n<p><strong>Disposal:<\/strong> To pass or into the control of someone else; to\nalienate, bestow, or part with.<\/p>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"elements-of-taxable-supply\"><span class=\"ez-toc-section\" id=\"ELEMENTS_OF_TAXABLE_SUPPLY\"><\/span><strong>ELEMENTS OF TAXABLE\nSUPPLY<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Supply has two important\nelements:<\/p>\n\n\n\n<ul><li>Supply is done for a consideration<\/li><li>Supply is done in course of furtherance of business<\/li><\/ul>\n\n\n\n<p>If these elements are not met with, it is not considered\nas a sale.<\/p>\n\n\n\n<p><strong>Examples:<\/strong><\/p>\n\n\n\n<p>1. Mr. A buys a table for Rs.10,000 for his personal use and sells it off after 10 months of use to a dealer. This is not considered as supply under <a href=\"https:\/\/commerceiets.com\/cgst\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"CGST (opens in a new tab)\">CGST<\/a> as this is not done by Mr. A for the furtherance of business.<\/p>\n\n\n\n<p>2. Mrs. B provides free coaching to neighboring students\nas a hobby. This is not considered as supply as this act is not performed for a\nconsideration.<\/p>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"features-of-taxable-supply-under-gst\"><span class=\"ez-toc-section\" id=\"FEATURES_OF_TAXABLE_SUPPLY_UNDER_GST\"><\/span><strong>FEATURES OF TAXABLE SUPPLY UNDER\nGST<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In the GST system, a taxable event is Supply. For the\ngovernment to consider an event as a supply, it should have the following\ncharacteristics.<\/p>\n\n\n\n<ol><li><strong>Supply of goods or services<\/strong>&nbsp;\u2013 It is a supply of goods&nbsp;when a transaction takes place. For example, purchasing a bottle. Supply of service is when there is a transfer of right without transfer of title. For example, availing taxi-cab services.<\/li><li><strong>Taxable \u2013&nbsp;<\/strong>Supply of goods or services can either be&nbsp;taxable or tax-exempt. Taxable supplies are goods and services that attract GST. Tax-exempt supplies include supply of goods or services that belong to a specific category of the GST Act.<\/li><li><strong>A taxable person should make the supply \u2013&nbsp;<\/strong>A taxable person is someone who registers under the GST, or is a liable to register. People can also voluntarily&nbsp;register. Supply between two non-taxable people is not a supply under GST.<\/li><li><strong>Within a taxable territory \u2013 <\/strong>Taxable territory means any place in India.<\/li><li><strong>Supply made in the course of business \u2013&nbsp;<\/strong>GST is applicable only on business transactions. Hence, a transaction made for business purpose is supply under GST.&nbsp;If&nbsp;someone supplies goods for personal purposes, it will not be considered as a supply under GST.<\/li><li><strong>In exchange for cash or reward (consideration) \u2013&nbsp;<\/strong>Consideration means a barter of goods or services, or payment made for a supply in money, or in kind. Advance payment or deposit towards supply also falls under consideration. According to&nbsp;CGST&nbsp;Act, the following activities that will be treated as supply even if made without consideration:&nbsp;<ul><li>When a business permanently transfers or disposes its assets for which taxpayers availed&nbsp;input tax credit.<\/li><li>Supply between two related or separate persons for business purposes.<\/li><li>When a taxable person imports services from a related person, or from his or her own business outside of India for business purposes.<\/li><li>Supply of goods by an agent on behalf of the supplier or supply that an agent receives on behalf of a customer.<\/li><\/ul><\/li><\/ol>\n\n\n\n<h2 class=\"has-text-align-center wp-block-heading\" id=\"types-of-supply\"><span class=\"ez-toc-section\" id=\"TYPES_OF_SUPPLY\"><\/span><strong>TYPES OF SUPPLY<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"has-text-align-center has-green-background-color has-background has-larger-font-size\"><strong>1. BASED ON LOCATION<\/strong><a href=\"https:\/\/www.legalraasta.com\/gst\/wp-content\/uploads\/2017\/06\/types-of-supply.png\" target=\"_blank\" rel=\"noopener\"><\/a><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"288\" height=\"219\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/03\/image-38.png\" alt=\"\" class=\"wp-image-3986\"\/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"intra-state-supply\"><span class=\"ez-toc-section\" id=\"INTRA-STATE_SUPPLY\"><\/span><strong><em>INTRA-STATE SUPPLY<\/em><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Intra-State is a type of&nbsp;supply of goods or services where the<strong>&nbsp;<\/strong>location of the supplier&nbsp;and the&nbsp;place of supply&nbsp;of goods are in the same State or same Union Territory.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"exceptions\"><span class=\"ez-toc-section\" id=\"_Exceptions_%E2%80%93\"><\/span>&nbsp;Exceptions \u2013<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<ul><li>Supply of goods to or by a&nbsp;Special Economic Zone&nbsp;developer or a SEZ unit; or<\/li><li>Goods&nbsp;imported&nbsp;into the territory of India; or<\/li><li>Supplies made to a&nbsp;tourist(section 15)<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"territorial-waters\"><span class=\"ez-toc-section\" id=\"TERRITORIAL_WATERS\"><\/span><strong><em>TERRITORIAL WATERS<\/em><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul><li>Where the&nbsp;location of the supplier&nbsp;is in the territorial waters; or<\/li><li>Where the&nbsp;place of supply&nbsp;is in the territorial waters;<\/li><\/ul>\n\n\n\n<p>The place of supply will be in the&nbsp;nearest Coastal State or Union Territory.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"inter-state-supply\"><span class=\"ez-toc-section\" id=\"INTER-STATE_SUPPLY\"><\/span><strong><em>INTER-STATE SUPPLY<\/em><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>It is a supply of goods or services, where the&nbsp;location of the supplier&nbsp;and&nbsp;place of supply&nbsp;are in-<\/p>\n\n\n\n<ul><li>Two different States;<\/li><li>Two different Union territories; or<\/li><li>A State and a Union territory<\/li><\/ul>\n\n\n\n<p>It also&nbsp;includes import&nbsp;of goods or services into the territory of India.<\/p>\n\n\n\n<p>Further, the following shall be\ntreated as an inter-state supply of goods or services:<\/p>\n\n\n\n<ul><li>When the supplier is located in India and the place of supply is&nbsp;outside India;<\/li><li>To or by a&nbsp;Special Economic Zone&nbsp;(SEZ) developer or a SEZ unit; or<\/li><li>In the taxable territory, not being an intra-state supply and not covered elsewhere.<\/li><\/ul>\n\n\n\n<p class=\"has-text-align-center has-green-background-color has-background has-larger-font-size\"><strong>2.&nbsp;BASED ON COMBINATION<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"304\" height=\"273\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/03\/image-39.png\" alt=\"\" class=\"wp-image-3987\" srcset=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/03\/image-39.png 304w, https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/03\/image-39-300x269.png 300w\" sizes=\"(max-width: 304px) 100vw, 304px\" \/><\/figure>\n\n\n\n<p><a href=\"https:\/\/www.legalraasta.com\/gst\/wp-content\/uploads\/2017\/06\/types-of-supply-1.png\" target=\"_blank\" rel=\"noopener\"><\/a><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"composite-supply\"><span class=\"ez-toc-section\" id=\"COMPOSITE_SUPPLY\"><\/span><strong><em>COMPOSITE SUPPLY<\/em><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Composite supply&nbsp;means a\nsupply is comprising two or more goods\/services, which are naturally bundled\nand supplied in with each other in the ordinary course of business, one of\nwhich is a principal supply.<\/p>\n\n\n\n<p>It means that the items are\ngenerally sold as a combination. The\nitems cannot be supplied separately.<\/p>\n\n\n\n<p>A supply of goods and\/or services\nwill be treated as composite supply if it fulfills&nbsp;the following criteria:<\/p>\n\n\n\n<ul><li>Supply of two or more goods or services together,&nbsp;AND<\/li><li>It is a natural bundle,i.e., goods or services are&nbsp;usually provided together in the normal course of business.&nbsp;<\/li><li>They cannot be separated.<\/li><\/ul>\n\n\n\n<p><strong>Examples:<\/strong><\/p>\n\n\n\n<ul><li>Goods are packed&nbsp;and\ntransported with insurance. The supply of goods, packing materials, transport\nand insurance is a composite supply. Insurance, transport cannot be done\nseparately if there are no goods to supply. Thus, the supply of goods is the\nprincipal supply.<\/li><li>Buying a Dry Fruit Gift Box for\nDiwali. It includes dry fruits, a box and a wrapper. Box and wrapper cannot be\nsold individually without the main content which is dry fruit. This is\ncomposite supply.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"mixed-supply\"><span class=\"ez-toc-section\" id=\"MIXED_SUPPLY\"><\/span><strong><em>MIXED SUPPLY<\/em><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Mixed supply under GST means a combination of two or more goods or services made together for a single price. Each of these items can be supplied separately and is not dependent on any other.<\/p>\n\n\n\n<p>Under\nGST, a mixed supply&nbsp;will have the tax rate of the item which has the\nhighest rate of tax.<\/p>\n\n\n\n<p><strong>Example:<\/strong>&nbsp;Buying a Christmas package consisting of cakes,\naerated drinks, chocolates, Santa caps and other gift items. Each of these\nitems can be sold separately and are not dependent on each other. This is mixed\nsupply. &nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"continuous-supply\"><span class=\"ez-toc-section\" id=\"CONTINUOUS_SUPPLY\"><\/span><strong><em>CONTINUOUS SUPPLY<\/em><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Continuous supply is of two types viz.,&nbsp;continuous supply of goods&nbsp;and&nbsp;continuous supply of services. <\/p>\n\n\n\n<p><strong>Continuous supply of goods: <\/strong>It means a supply of goods which is provided on continuous basis, under a contract, whether or not by means of wire, cable, pipeline or other conduit, and for which the supplier invoices the recipient on a regular basis and includes supply of notified goods.<\/p>\n\n\n\n<p><strong>Continuous supply of services: <\/strong>It means a supply of services which is provided continuously or on recurrent basis, under a contract for a period exceeding three months with periodic payment obligations and includes supply of notified services. <\/p>\n\n\n\n<p class=\"has-text-align-center has-green-background-color has-background has-larger-font-size\"><strong>3. BASED ON RECIPIENT<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"304\" height=\"222\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/03\/image-40.png\" alt=\"\" class=\"wp-image-3988\" srcset=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/03\/image-40.png 304w, https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/03\/image-40-300x219.png 300w\" sizes=\"(max-width: 304px) 100vw, 304px\" \/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"inward-supply\"><span class=\"ez-toc-section\" id=\"INWARD_SUPPLY\"><\/span><strong><em>INWARD SUPPLY<\/em><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>It means receipt of goods or\nservices or both whether by purchase, acquisition or any other means with or\nwithout consideration.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"outward-supply\"><span class=\"ez-toc-section\" id=\"OUTWARD_SUPPLY\"><\/span><strong><em>OUTWARD SUPPLY<\/em><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>It means a supply of goods or\nservices or both, whether by sale, transfer, barter, exchange, license, rental,\nlease or disposal or any other mode, made or agreed to be made by such person\nin the course or furtherance of business.<\/p>\n\n\n\n<p class=\"has-text-align-center has-green-background-color has-background has-larger-font-size\"><strong>4.&nbsp;BASED ON TAX TREATMENT&nbsp;<\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/www.legalraasta.com\/gst\/wp-content\/uploads\/2017\/06\/types-of-supply-6.png\" target=\"_blank\" rel=\"noopener\"><\/a><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"exempt-supply\"><span class=\"ez-toc-section\" id=\"EXEMPT_SUPPLY\"><\/span><em><strong>EXEMPT SUPPLY<\/strong><\/em><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Exempt Supply&nbsp;of any goods or services is one which attracts&nbsp;nil rate&nbsp;of tax or which may be wholly exempt from tax. It includes non-taxable supply. In the case of exempt supply&nbsp;in respect of any goods and\/or services, the taxable person shall not be required to pay tax.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"zero-rated-supply\"><span class=\"ez-toc-section\" id=\"ZERO-RATED_SUPPLY\"><\/span><strong><em>ZERO-RATED SUPPLY<\/em><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>It means&nbsp;export&nbsp;or supply of goods or services to a&nbsp;Special Economic Zone&nbsp;developer or a Special Economic Zone unit.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"non-taxable-supply\"><span class=\"ez-toc-section\" id=\"NON-TAXABLE_SUPPLY\"><\/span><em><strong>NON-TAXABLE SUPPLY<\/strong><\/em><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Non-taxable supply&nbsp;is the sale of&nbsp;any good or service which attracts&nbsp;nil rate&nbsp;of tax and is similar to exempt supply.<\/p>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"transactions-do-not-come-under-purview-of-gst\"><span class=\"ez-toc-section\" id=\"TRANSACTIONS_DO_NOT_COME_UNDER_PURVIEW_OF_GST\"><\/span><strong>TRANSACTIONS\nDO NOT COME UNDER PURVIEW OF GST<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Following are the transactions not covered under GST:<\/p>\n\n\n\n<ol><li>Services provided by an employee to the employer.<\/li><li>Gifts up to Rs.50,000\/- in value in a Financial Year, by an employer to an employee.<\/li><li>Services of the funeral, burial, crematorium or mortuary including transportation of the deceased<\/li><li>Services by any court or Tribunal.<\/li><li>Duties performed by the MP\/MLA\/MLC\/Members of Local Bodies.<\/li><li>Duties performed by any person as a Chairperson or a Member or a Director in a body established by the Central Government or a State Government or local authority.<\/li><li>Duties performed by any person who holds any post in pursuance of the provisions of the Constitution in that capacity.<\/li><li>Sale of Land.<\/li><li>Sale of Building (However, If construction  of a complex \/building intended for sale to a buyer and part of the consideration is received before completion, then it will be treated as Supply of Services).<\/li><li>Actionable claims, other than lottery, betting and gambling.<\/li><\/ol>\n\n\n\n<p><strong>QUESTION COVERED<\/strong><\/p>\n\n\n\n<p>What is taxable supply?<\/p>\n\n\n\n<p><strong>JOIN THE CHANNEL ON TELEGRAM<\/strong><\/p>\n\n\n\n<p><a href=\"https:\/\/t.me\/commerceiets\" target=\"_blank\">https:\/\/t.me\/commerceiets<\/a><\/p>\n\n\n\n<p><strong>CONNECT ON LINKEDIN<\/strong><\/p>\n\n\n\n<p><a href=\"https:\/\/www.linkedin.com\/in\/kajal-mahajan-7549b2197\/\" target=\"_blank\" rel=\"noopener\">https:\/\/www.linkedin.com\/in\/kajal-mahajan-7549b2197\/<\/a><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Also Study:<\/strong><\/td><td><strong>Also Study:<\/strong><\/td><td><strong>Also Study:<\/strong><\/td><td><strong>Also Study:<\/strong><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/features-of-gst\/\">GST and its features<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/history-of-gst\/\">History of GST<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/advantages-of-gst-in-india\/\">Advantages of GST<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/disadvantages-of-gst\/\">Disadvantages of GST<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/constitutional-aspect-of-gst\/\">Constitutional aspects of GST<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/liability-of-tax-payer\/\">Liability of tax payer<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/objectives-of-gst\/\">Objectives of GST<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/what-is-igst\/\">IGST<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/cgst\/\">CGST<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/gst-council\/\">GST Council<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/utgst-full-form\/\">UTGST<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/sgst\/\">SGST<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/levy-and-collection-of-gst\/\">Levy and collection of GST<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/composition-levy\/\">Composition Levy<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/online-gst-registration\/\">Online GST Registration<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/exemptions-under-gst\/\">Exemptions under GST<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/reverse-charge-in-gst\/\">Reverse Charge in GST<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/taxable-supply\/\">Taxable supply<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/time-of-supply\/\">Time of supply<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/value-of-supply\/\">Value of supply<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/place-of-supply\/\">Place of supply<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/inter-state-supply\/\">Inter-state supply<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/intra-state-supply\/\">Intra-state supply<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/what-is-composite-supply\/\">Composite supply<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/mixed-supply\/\">Mixed supply&nbsp;<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/composite-and-mixed-supply\/\">Composite and mixed supply<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/online-payment-of-gst\/\">Online payment of GST<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/how-to-claim-tcs-in-gst\/\">How to Claim TCS in GST<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/how-to-claim-tds-in-gst\/\">How to claim TDS in GST<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/input-tax-credit-under-gst\/\">Input tax credit under GST<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/tax-invoice-under-gst\/\">Tax Invoice<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/debit-note\/\">Debit Note in GST<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/credit-note\/\">Credit Note in GST<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/revised-invoice-in-gst\/\">Revised Invoice in GST<\/a><\/td><td><a href=\"http:\/\/v\" target=\"_blank\">Supplementary Invoice<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/e-way-bill-in-gst\/\">E-Way bill in GST<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/gst-returns\/\">GST Returns<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/goods-and-service-tax-network\/\">GSTN (Goods and Service Tax Network)<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/gst-suvidha-provider\/\">GST Suvidha Provider<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/gst-portal\/\">GST Portal<\/a><\/td><\/tr><\/tbody><\/table><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>TAXABLE SUPPLY UNDER GST Supply on which tax shall be paid under GST is known as taxable supply. Taxable Supply includes sale, transfer, exchange, barter, license, rental, lease and disposal. If a person undertakes either of these transactions during the course or furtherance of business for consideration, it&nbsp;will be covered&nbsp;under the meaning of Supply under&#8230;<\/p>\n<p class=\"more-link-wrap\"><a href=\"https:\/\/commerceiets.com\/taxable-supply\/\" class=\"more-link\">Read More<span class=\"screen-reader-text\"> &ldquo;TAXABLE SUPPLY&rdquo;<\/span> &raquo;<\/a><\/p>\n","protected":false},"author":2,"featured_media":3990,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[229],"tags":[],"_links":{"self":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/3985"}],"collection":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/comments?post=3985"}],"version-history":[{"count":0,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/3985\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media\/3990"}],"wp:attachment":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media?parent=3985"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/categories?post=3985"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/tags?post=3985"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}