161 CH. 4 : MEANING AND SCOPE OF SUPPLY AND LEVY OF GST Para 4.

of the grantor, something which would, in the absence of such a right, be

unlawful, and such right does not amount to an easement or interest in
the property, the right is called a licence.

4.6-7 Rentals
The word ‘rent’ is defined in Black’s Law Dictionary & Chambers
Dictionary as :
“periodical payment for use of another’s property”. Normally payment is
made monthly.

4.6-8 Lease
Leasing:
As per section 105 of Transfer of Property Act, 1882,
a lease of immovable property is a transfer of a right to enjoy such
property, made for a certain time, express or implied, or in perpetuity, in
consideration of a price paid or promised, or of money, a share of crops,
service or any other thing of value, to be rendered periodically or on
specified occasions to the transferor by the transferee, who accepts the
transfer on such terms.
Difference between Lease & License:
A lease temporarily grants the right to a certain property for a particular
term while a license means giving someone the right to perform or do
something to a property that is originally not allowed or prohibited in
the absence of such license. The first is the one that generates a sense
of interest in the grantor’s property whereas the latter just gives due
permission of usage of the property so that there is no interest in the
said property.

4.6-9 Disposal
The term ‘disposal’ is defined in various dictionaries as follows:
u To pass over into the control of someone else; to alienate, bestow,
or part with [The Black’s Law Dictionary]
u ‘Disposal’ is frequently, used in the sense of regulating, ordering,
conducting, a thing or business [The Law Lexicon]
The word ‘disposal’ is normally used to denote selling of asset when the
organization is about to close down and various assets are required to
be disposed of.
All other forms of business transaction in addition to mentioned above
will also be considered as supply liable to tax.
Para 4.7 DIV. 1 : BASIC CONCEPTS 162

4.7 Consideration
The GST is payable on transaction value of supply. The consideration
received by person can thus be considered as transaction value. Section
2(31) defines ‘consideration’ as follows:
(31) “consideration” in relation to the supply of goods or services or both
includes—
(a) any payment made or to be made, whether in money or otherwise,
in respect of, in response to, or for the inducement of, the supply of
goods or services or both, whether by the recipient or by any other
person but shall not include any subsidy given by the Central
Government or a State Government;
(b) the monetary value of any act or forbearance, in respect of, in
response to, or for the inducement of, the supply of goods or services
or both, whether by the recipient or by any other person but shall not
include any subsidy given by the Central Government or a State
Government:
Provided that a deposit given in respect of the supply of goods or services
or both shall not be considered as payment made for such supply unless
the supplier applies such deposit as consideration for the said supply;
The ‘consideration’ has been defined in the Contract Act and Chapter V
of the Finance Act, 1994. The meaning and scope of consideration
defined in these statute will be helpful in understanding the meaning of
consideration as defined above. The meaning of consideration as defined
in other statute are discussed below :

4.7-1 Meaning of ‘Consideration’ under Chapter V of the Finance Act,

1994
Clause (a) in section 67A provided in Chapter V of Finance Act, 1994
defines the word ‘consideration’ prior to 14-5-2015 as follows:
“‘consideration’ includes any amount that is payable for the taxable
services provided or to be provided”.
Section 67 provided for determination of value of taxable services. As
per this section, value of taxable services shall be gross amount charged
by the service provider for the taxable service rendered by him. The
Hon. Larger Bench of Tribunal in the case of Bhayana Builders 2013
(32) STR 49 (Tri LB) has interpreted the general meaning of
consideration as well as in the context of notification 1/2006-ST dated
1-3-2006. The Larger Bench of Tribunal observed in para 8(iv) and (v)
as follows: