TAXABLE EVENT AND SUPPLY

Presentation By :- * Ranvir Singh

*Rahul Banger
Rollno :- *2024550
*2024549
 TAXABLE EVENT
▪ (a) Taxable- Liable to be taxed; subject to tax
▪ (b )Event:- A thing that happens or takesplace, especially one of importance.
(Source:- Oxford Dictionary)
▪ Taxable event:
A taxable event is any event or occurrence that results in a tax liability. Normally taxab
- le event means occurrence creates or attract the liability to be fixed.
▪ Taxable event under GST:
Tax will be levied when supply of Goods and/or services. Time of supply of goods and/or
services is more important under GST the liability to be fixed.
 SUPPLY
▪ 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 will be
covered under the meaning of Supply
underGST.
 ELEMENTS OF SUPPLY
▪ Supply has two important elements:
1. Supply is done for a consideration.
2. Supply is done in course of furtherance of business.
▪ If the aforementioned elements are not met with, it is not considered as a sale.
EXAMPLE OF THE SUPPLY
▪ For Example:
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 CGST as this is not
done by Mr A for the furtherance of business
Mrs. B provides free coaching to neighbouring
students as a hobby. This is not considered as supply
as this act is not performed for a consideration.
 COMPONENTS OF SUPPLY
Place, value, and time are three elements of a GST supply that are used to determine
the tax due for that transaction.
▪ Place of Supply: This tell if you any transaction is an intra-state supply, inter-state
supply, or aforeign trade, in turn, telling you the type of GST to apply.
▪ Value of Supply: This sections tell you the taxable value of a supply and, the final
amount of the tax that one needs to pay.
▪ Time of Supply: It tells you when the applicable taxes and GST returns are due.
TYPES OF SUPPLY
There are a few supplies which are made together with two or more items. Such
supplies are further classified into Composite Supply and Mixed Supply.
▪ COMPOSITE SUPPLY :
When goods and services are supplied as a bundle, in conjunction with each other,
in the ordinary course of business, one of which is a principal supply, it is considered
a composite supply. These are generally the necessities combined, and even the
customer perceives to receive such goods and services as a package.Composite
supplies are generally advertised as a package, and the supplies cannot be sold
individually. In the case of composite supplies, the rate of supply is the rate
applicable to the Principal Supply. For example, a charger supplied with amobile
phone or a laptop.
▪ Mixed Supply :
Mixed Supplies are when two or more taxable individual supplies are supplied in
combination. Such supplies are individual and are not naturally bundled. The supply
that attracts the highest tax rate for Mixed Supplies is applied to the entire mixed
supply. For example, a Diwali gift package consisting of Chocolates, candies, dry
fruits,sweets, balloons.
ACTIVITIES OR TRANSACTIONS TREATED
AS SUPPLY OF GOODS AND SERVICES
S. No Transaction Supply of
goods/Supply of
services
1. Transfer of title in goods Supply of goods

2. Transfer of rights in goods Supply of services

without the transfer of title

3. Lease, tenancy, Supply of services

rental,easement of land or
equipment
S. No Transaction Supply of goods
/Supply of services
4. Treatment or process Supply of Services
applied on goods

5. Goods of business are Supply of goods

transferred or disposed off
so that they don't form part of
the business anymore
6. Goods are made available to Supply of Services
another person for any
purpose other than business
under the person’s directions
carrying on a business
7. Development, designing Suppy of Services
programming,enhancement
of any IT software
8. Temporary transfer of rights Supply of services
to Immovable properties
ACTIVITIES NEITHER SUPPLY OF GOODS
NOR SUPPLY OF SERVICES
There are some activities mentioned in (Schedule ll) which shall treated neither
assupply of goods nor supply of services.
▪ Services by employee to employer in course of his employment.
▪ Services by court or tribunal.
▪ Functions performed by MLA, MP, Member of Panchayat, Member of Municipalities.
▪ Services of Funeral, burial etc.including transportation of deceased.
▪ Sale of land and, subject to Paru.5(b) of schedule l, sale of building.
▪ Actionable claim other than Lottery, betting and gambling.
▪ High sea-scale.
Thank you