Supply Under GST, Meaning, Elements, Types, Scope

In the world of Goods and Services Tax (GST), the term “supply” holds a central role. When it comes to Supply Under GST, understanding this term is essential, as it is the taxable event for charging GST. For CA students, a clear grasp of the meaning, elements, and types of supply can make all the difference in passing exams with confidence and tackling GST queries with ease. This article will discuss what constitutes supply, its elements, classification, and more.

What is Supply Under GST?

1. The supply must be for consideration (i.e., there must be something given in return).
2. It must be done in the course or furtherance of business.

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Concept of Supply Before GST

• Excise duty was charged on goods produced when they left the factory.
• Service Tax was governed by “point of taxation” rules.
• VAT applied to the sale of goods or provision of services.

Also Check: GST Compliance

Elements of Supply Under GST

1. Consideration: Supply should be for a specific payment or consideration, which can include money, goods, or services in return for the transaction.
2. Business Purpose: The supply must take place in the course of or furtherance of business. Personal supplies are generally not covered under GST.

Types of Supply Under GST

1. Composite Supply

• Principal Supply: The main item or service provided in the transaction.
• Secondary Supply: Additional items provided alongside the principal supply.

2. Mixed Supply

Time of Supply

Value of Supply

• Price paid or payable for the goods or services.
• Any other taxes levied under laws other than GST.
• Subsidies or discounts linked to the supply, if any.

Scope and Exemptions in Supply Under GST