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GST Revisionary Series

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CA Intermediate

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May, 2024
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Lecture 1 – Supply Under GST
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CA Nishant Kumar
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Income Tax Revision Schedule

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Date Day Topic

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01-02-2024 Thursday L1 - Basics of Taxation and General Tax Rates
03-02-2024 Saturday L2 - Residence and Scope of Total Income
06-02-2024 Tuesday L3 - Income from Salaries

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08-02-2024 Thursday L4 - Income from House Property

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10-02-2024 Saturday L5 - Profits and Gains from Business or Profession
13-02-2024 Tuesday L6 - Capital Gains
15-02-2024 Thursday L7 - Income from Other Sources

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17-02-2024 Saturday L8 - Clubbing of Income
20-02-2024 Tuesday
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L9 - Set Off; Carry Forward of Losses
22-02-2024 Thursday L10 - Deductions from Gross Total Income
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02-03-2024 Saturday L11 - Return Filing and Self Assessment
03-03-2024 Sunday L12 - TDS, TCS, Advance Tax
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04-03-2024 Monday L13 - Income Tax Liability - Computation and Optimization

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GST Revision Schedule

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Date Day Topic

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05-03-2024 Tuesday L1 - Supply Under GST
07-03-2024 Thursday L2 - Charge Under GST; Composition Levy
09-03-2024 Saturday L3 - Place of Supply

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12-03-2024 Tuesday L4 - Exemptions from GST

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14-03-2024 Thursday L5 - Time of Supply
16-03-2024 Saturday L6 - Value of Supply

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19-03-2024 Tuesday L7 - Input Tax Credit
21-03-2024 Thursday L8 - Registration Under GST
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23-03-2024 Saturday L7 - Tax Invoice; Credit and Debit Notes; E-Way Bill
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26-03-2024 Tuesday L8 - Accounts and Records; TDS & TCS
28-03-2024 Thursday L9 - Payment of Tax
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30-03-2024 Saturday L10 - Returns Under GST

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 Section 7 - Supply

(1) (1A) (2) (3)

Supply Includes Supply as per Section 7(1) to be considered as either Supply of "Goods", or Activities Neither Treated as Supply of Goods Nor as Supply of Services The Central
"Services" as per Schedule II Government may
notify transactions
(a) (aa) (b) (c) 7(2)(a) 7(2)(b) Non-Supplies Clarified by way of Clarification
to be qualified as
Schedule II
‘supply of goods’ or
All forms of Any supply by Import of Activities in Schedule I undertaken WITHOUT CONSIDERATION Schedule III Activities or transactions by the Central Government, State Government, or local Inter-State Movement Tax on Repairs Inter-State ‘supply of services’
Supply of unincorporated Services authorities as public authorities, notified by the Government on Council of Conveyances and Movement of based on the
1(a) Any transfer of title in goods Supply of Goods
Goods or associations or recommendations. Maintenance Rigs, Tools, recommendations

CA Nishant Kumar
for a Para 1 Para 2 Para 3 Para 4 of the council.
Services or bodies to their Any transfer of right in goods/undivided share in goods without transfer of title Premature Termination of Contract Not a Supply Spares, and
Consideration 1(b) Supply of Services Involves For carrying
Both, such as members, thereof Goods on
Non-compete Payments Supply Notified Services Grant of Alcoholic Services trains, goods or Repairs and
whether goods Whether or Permanent Transactions between Supply of GOODS by Principal to Agent or Vice Versa Import of Services Wheels
Any transfer of title in goods under an agreement which stipulates that property in Liquor Licence Provided by buses, passengers or maintenance
(e.g., air Not In the Transfer/ Payment by Construction Contractors
Sale Without 1(c) goods shall pass at a future date upon payment of full consideration as agreed, Supply of Goods Government trucks, both, or for for
conditioners) or Course or Disposal Services by or Security Companies to Casual Not a Supply Services Services
Related Persons Distinct Persons as per Section 25 Invoice in the Name of Agent Otherwise Consideration such as Sale of Goods on Return or Approval Basis, or Hire Purchase tankers, repairs and conveyances
Transfer services (e.g., Furtherance of an employee Workers related to related to Services by Other Includes rigs,
of Casual Workers trailers, maintenance.
payment of Business From Supply of Services to the functions functions way of grant licenses/ Services provided to tools, spares,
Barter Business 2(a) Any lease, tenancy, easement, licence to occupy land Payment by Clients to Construction vessels,
electricity bills), Persons are related if they Meaning 25(4) 25(5) Supply Not a Supply employer in entrusted entrusted to of alcoholic privileges business entities by Applicable and all goods
Assets Contractors or Security Companies who Supply containers,
Exchange is treated as a Any lease or letting out of building including a commercial, industrial or residential the course of to a a liquor license the Government, CGST/ SGST/ on wheels
Related Person, 2(b) Supply of Services provide Casual Workers aircrafts
supply under on which complex for business or commerce, wholly or partly or in relation Panchayat Municipality by State including grant of IGST, as the like cranes.
Licence GST. hold positions of control in each other's business Refers to Establishments Each Establishments or GST
ITC has 1 to his Payments to them are not treated as under under article Governments privileges, licenses, case may be,
establishments in different registration, in different Del Credere Agent 3 Any treatment or process which is applied to another person’s goods Supply of Services Whole- Payable
Rental been are partners Distinct employment. supply if regarded as employees. article 243G 243W of the mining rights, is leviable
or businesses states are whether in states are Time/
availed Establishment Goods forming part of business assets are transferred or disposed of by/under Constitution natural resources, Treated the
with separate considered one or treated as Executive Portions of remuneration treated as salaries Not Treated ‘neither as a
Lease employer and employee Supply of Goods etc. same as inter-
Loan Provided by Loan Provided by of Same 4(a) directions of person carrying on the business so as no longer to form part of those supply of goods nor
registrations distinct, even if multiple belonging to Directors are not subject to GST, while the balance is considered
Company assets supply of service’; not state
Disposal within the same one is not states, is distinct persons DCA to Recipient DCA to Recipient leviable to GST. as a supply
Directors leviable to IGST. movement of
Service in Gifts by Employer state or across registered treated as a (Not as an Agent (As an Agent of goods or Taxable Tax is
Made or Agreed to In the Goods held/used for business are put to private use or are made available to any conveyances;
terms of to Employee under Schedule I – under Schedule I Independent/ Not regarded as employees, hence their services under paid by
be made by a different states distinct Course or 4(b) person for use for any purpose other than business, by/under directions of person Supply of Services ‘neither as a
employment Para 3) – Para 3) Nominee/ services for consideration are not GST the
Person person Furtherance carrying on the business supply of
Non- excluded from the scope of supply. business
Upto Above of Business goods nor
For a Consideration Goods forming part of assets of any business carried on by a person who ceases to Executive Remuneration paid is liable for GST and entities
Salary Perquisite ₹50,000 ₹50,000 Considered as a Interest charged by Directors charged under reverse charge basis. supply of
be a taxable person, shall be deemed to be supplied by him, in the course or on such
Two Cases Separate the DCA is included in Supply of Goods service’ and
4(c) furtherance of his business, immediately before he ceases to be a taxable person. services
Supply; Does the value of goods 2 Services by any court or Tribunal established under any law for the time being in force. not leviable to
Not a Not a Supply Supply Exceptions: (i) Business transferred as a going concern, (ii) Business carried on by a under
Not a Supply not affect the supplied by the DCA IGST
Deposits Consideration personal representative. Functions performed by the Members of Parliament, Members of State Legislature, reverse
Supply from a Stock Transfers (Self Supplies) value of goods to the recipient 3a
unless applied registered restaurant in Members of Panchayats, Members of Municipalities, and Members of other local authorities. charge
share significant stock ownership (≥ 25%) Renting of immovable property
Not a Maharashtra to an Duties performed by any person who holds any post in pursuance of the provisions of the
Artworks have direct/indirect control over each other Within Within Branches 3b
unregistered liquor Construction of a complex, building, civil structure, or a part thereof 3
consideration Branches with in Same State Constitution in that capacity.
sent to shop in Uttarakhand
unless are controlled by a third party Separate GST with Single Temporary transfer or permitting use or enjoyment of any intellectual property
gallery Duties performed by any person as a Chairperson or a Member or a Director in a body
purchased Registrations Registration right
control a third party together 3c established by the Central Government or a State Government or local authority and
Not a Qualifies as a supply who is not deemed as an employee before the commencement of this clause.
are family members Development, design, programming, customization, adaptation, upgradation,
consideration because the restaurant
Donations Supply Not a Supply enhancement, implementation of IT software
in Maharashtra and the 4 Services of funeral, burial, crematorium or mortuary including transportation of the deceased
unless quid
pro quo liquor shop in Agreeing to obligation to refrain from an act, or to tolerate an act or situation, or to
Spouse and Parents, Grandparents, Building Sold During Construction Supply of Services as per Schedule II
Uttarakhand are do an act
Children Siblings
Not a considered Building Sold After Construction Not a Supply
No
consideration establishments of
Claim Transfer of Tenancy
as obligation Always Only if they are wholly or distinct persons Non-Compete Agreement Supply
Bonus Rights for Consideration
is absent mainly dependent
Builder refrains from Sale of land
In the Course or and sale of Even though Stamp Duty, Registration
Refrain constructing to protect
Furtherance of Examples building Charges, etc. are paid, it not
from sunlight to neighbors
Business considered as sale of building
Act
Contractor refrains
Transfer of tenancy rights to a new
from construction Taxable
tenant against tenancy premium
during school hours
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Tenancy Rights Grant of tenancy rights
Shopkeeper allows a hawker to
in a residential dwelling
set up his shop in the pavement
for use as residential
of the shopkeeper Exemptions Exempt
Examples dwelling against
RWA tolerating morning tenancy premium or
prayer sounds by neighboring periodic rent or both
school
Services provided by
Services
outgoing tenant by
by
Damage to surrendering the tenancy Liable to GST
Outgoing
property, rights against a portion of
Tenant
negligence, tenancy premium
piracy, A claim to any debt or right to receive a benefit under a
unauthorized Actionable
contract that can be legally enforced, such as insurance
use of trade claims, Actionable Claim
claims, rent arrears, unsecured loans, and rights to benefits
name, other than
under contracts
copyright, etc. specified
actionable Specified Actionable Claims
Penalty for claims
delayed
construction Betting
Liquidated of houses
Damages Casions
Forfeiture
Gambling
of
advance Horse Racing
money Not a
Supply Supply Lotteries
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Services Online Money Gaming
earnest
money by
bidder of Online Virtual Digital Assets Amendment
natural 6 Money to Definition
resources Gaming of Supplier
A digital It's broadly
Tolerate Cheque dishonour fine/penalty representation of defined and
an Act or Online value that can be subject to GST The
Penalty for violation of law
Situation games traded or stored if involved in definition
Penalty for excess mining over where electronically, specified now
permissible limit players pay including actionable includes
or deposit cryptocurrencies claims. those who
Forfeiture of salary or payment
money in and NFTs. arrange or
of bond amount from employee
expectation supply
for leaving earlier than minimum
of winning specified
agreed period
money or actionable
Cases other claims via
valuables, digital or
Penalty for not making the including electronic
payment on time (when it is virtual platforms,
as per contract) digital making
assets. them liable
Forfeiture of ticket to GST.
amount for not
showing up

Forfeiture of security deposit

for getting tickets cancelled
Supply
Early termination fee of lease

Pre-payment charges
for loans by Banks

Late fee or penalty for

electricity, water,
telecommunication

Cancellation charges of
train tickets/flight tickets

Fixed charges for Since Electricity is exempt ,

electricity there’s no GST on it

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an Example Factory agreeing to install zero emission equipment
Act

Transfer of right to use any goods for any purpose for cash, deferred payment or
other valuable consideration

Works Contract
6 Supply of Services
Restaurant Services

CA Nishant Kumar (NISH10)

 Chapter 2 – Supply Under GST
Analysis of Goods
Inclusion in
Category Remarks
'Goods'
Movable Yes Must be capable of being bought and sold; immovable property

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Property excluded.
Money No Excluded explicitly.
Securities No Excluded; transactions in securities on a principal-to-principal
basis are outside the ambit of supply.
Actionable Yes (with Included; however, certain actionable claims like betting, casinos,

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Claim exceptions) gambling, horse racing, lotteries, and online money gaming are
subject to GST.
Growing Yes Included; severability is a crucial element for consideration.
Crops

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Standing No Not considered goods, hence not taxable.
Trees
Standing Yes Considered goods because they are severed from the land for
Timber sale.

Analysis of Services
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Excluded from
Aspect Included in 'Services' Remarks
'Services'
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General Anything other than N/A Includes activities related to

Definition goods, money, and the use of money or its
securities conversion with a separate
consideration.
Common Economic activity that is N/A Consumed at the point of sale;
Understanding of intangible, not stored, the benefit may last longer.
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Service does not result in

ownership
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Transactions in If a separate fee is Direct exchange Direct money transactions

Money charged for conversion or or change without a fee are not services;
change in form, currency, without a fee those with a fee are subject to
denomination GST.
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Bank Interest Yes No Depositing money in a bank is

considered a supply of service
because the bank pays
interest.
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Personal Money No Yes Money given without charging

Transfers anything (e.g., a father giving
money to his children) is not
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considered a service.
Securities Brokerage services Direct Transactions in securities are
Transactions transactions in not services, but brokerage
securities services facilitating these
transactions are.

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 Clarification on Taxability of Shares Held in a Subsidiary Company by the
Holding Company [Circular 196/08/2023-GST dated 17.07.2023]
Securities are considered as neither goods nor services as per section 2(52) and 2(102) of the CGST
Act, 2017. Further, no service is being provided by holding company to the subsidiary, merely by
holding the shares of the subsidiary company unless there is a separate supply of services in
accordance with section 7 of the CGST Act. Hence, the activity of holding of shares of subsidiary

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company by the holding company per se cannot be treated as a supply of services and cannot be
taxed under GST.

Different Types of Supplies Under the GST Law

Type of
Definition Key Characteristics Inclusion Criteria Exclusion Criteria

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Supply
Taxable A supply of goods or Involves goods or Must fall within the Should not be
Supply services or both services. definition of specified under
which is leviable to ‘supply’; Leviable to Schedule III.

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tax. GST.
Non- A supply of goods or Excludes alcoholic Must be a ‘supply’ Supplies covered
Taxable services or both not liquor for human as defined; by exemptions, nil
Supply leviable to tax under consumption. Excluded from GST rated, or zero-
GST or IGST Act. scope. rated are not non-
taxable.
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NIL Rated Goods or services on Includes items like Listed in schedule 1 N/A
Supply which GST rate of salt, jaggery, under GST rate
0% is applicable. cereals. schedule.
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Exempt Supply of any goods Includes non- Taxable at NIL rate, Zero-rated supplies
Supply or services or both taxable supply. wholly exempted not considered as
which attracts NIL by notification, exempt.
rate of tax or wholly includes non-
exempt from tax. taxable supplies.
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Zero- Export of goods or Input tax credit is Enables tax-free N/A

Rated services or both; or available for inputs output without
Supply supply to SEZ used. blocking input tax
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developer or SEZ credit.

unit.
Inward Receipt of goods or Covers all persons, N/A Does not use the
Supply services or both by whether registered term 'supply'; has a
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purchase, or unregistered. broader scope.

acquisition, or any
other means.
Outward Supply of goods or Must be in the Must first be a Receipts not
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Supply services or both course or ‘supply’ as per GST amounting to

made by a taxable furtherance of Law. supply; personal
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person in the course business. use not included.

of business.

Composite Supply and Mixed Supply

Attribute Composite Supply Mixed Supply
Definition A supply comprising two or more taxable Two or more individual supplies
supplies that are naturally bundled and made together for a single price,

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 Attribute Composite Supply Mixed Supply
supplied in conjunction with each other, which do not constitute a
with one being a principal supply. composite supply.
Principal Supply Present. The composite supply is treated Not applicable, as the supplies are
as a supply of the principal supply. independent.
Bundling Supplies are naturally bundled in the Supplies are not naturally
ordinary course of business. bundled.
Determination of Taxed as a single supply based on the Taxed based on the supply that

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Tax Liability principal supply's GST rate. attracts the highest rate of tax
among the included supplies.
Indicators of Consumer perception favors bundling. Determined by the absence of
Bundling Common practice among providers. natural bundling and if it's not a
Presence of a main service and ancillary composite supply.

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services.
Advertised as a package, not available
separately, integral to overall supply.

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Example Mobile phone sold with a battery; hotel A gift basket containing taxable
stay with complimentary meals. goods of different tax rates sold
for a single price.
Taxation Criteria Entire value classified under the principal Each supply in the bundle can
supply. have independent tax rates,
highest rate applied to entire
bundle.
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Other Depends on the natural necessity and Applies when supplies carry
Considerations customer expectation for bundling. independent significance and are
offered for a single price without
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being a composite supply.

CBIC Clarifications on Certain Composite Supplies

Issue Dilemma/Clarification Principal Supply Classification
Printing Difficulty in deciding whether the supply Depends on the Composite Supply
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Industry is categorized as goods or services due to determination of

contracts involving both. the principal
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supply.
Printing of For printed items like books, pamphlets, Printing service Supply of Services
Books, etc. brochures, etc., where content is
provided by the recipient and physical
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inputs by the printer, printing service is

the principal supply.
Printing of For items like envelopes, boxes, etc., Supply of physical Supply of Goods
Envelopes, printed with designs or logos provided inputs (goods)
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etc. by the recipient, the supply of goods

(physical inputs) is predominant.
Food Food to in-patients is part of the Healthcare service Composite Supply
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supplied to healthcare service and not separately (for in-patients) (for in-patients) /
Patients taxable. Food to non-admitted patients Taxable Supply
or visitors is taxable. (others)
Bus Body Combination of goods and services, Specific to the case Depends on
Building classification depends on the principal Principal Supply
supply, which varies case by case.

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 Issue Dilemma/Clarification Principal Supply Classification
Retreading Retreading is a composite supply with Retreading Supply of Services/
of Tyres the retreading service as the service/Old tyre Goods (contextual)
predominant element. When the old supply (contextual)
tyres belong to the supplier, it's a supply
of goods.

Clarification on Taxability of the Supply of Foods or Beverages in Cinema

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Halls [Circular No. 201/2023-GST dt. 01.08.2023]
• It has been clarified that supply of food or beverages in a cinema hall shall be taxable as
‘restaurant service’ as long as:
o the food or beverages are supplied by way of or as part of a service, and

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o supplied independent of the cinema exhibition service.
• It is further clarified that where the sale of cinema ticket and supply of food and beverages
are clubbed together, and such bundled supply satisfies the test of composite supply, the

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entire supply will attract GST at the rate applicable to service of exhibition of cinema i.e.,
the principal supply.

Important Questions: ALL Questions are Important

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