GST Presentation

(What is supply; Types of supply;

Place of supply; Time of supply)

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Taxable Event & Supply
Taxable Event- any transaction or occurrence that results in a
tax consequence.
• It is the foundation stone of any taxation system
• It determines the point at which tax would be levied

eg. manufacture or production of goods/provision of service

under excise duty; sale of goods under CST & VAT

Under GST law the taxable event is "Supply"

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Meaning & Scope of Supply [Section 7
of CGST Act]

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 Generic Definition [Section 7(1)(a)]

The following parameters need to be considered:

1. Supply should be of goods or services
2. Supply should be made for a consideration
3. Supply should be made in course or furtherance of business

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 Generic Definition [Section 7(1)(a)]
1. Supply should be of goods or services 2. Supply should be made for a consideration

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 Generic Definition [Section 7(1)(a)]
3. Supply should be made in course or furtherance of business

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Importation of Services [Section 7(1)(b)]
Supply includes importation of services, for a consideration, whether
or not in the course or furtherance of business
- Supply should be for a consideration
- Supply may or may not be in course or furtherance of business

This is the only exception to the condition of supply being made in

course or furtherance of business

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 Deemed Supply [Section 7(1)(c)]
There are instances where an activity or transaction is treated as supply, even
if it is made without consideration.
As per Schedule I, in following 4 cases, activities made without consideration
will be treated as supply u/s 7 of CGST Act:

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Deemed Supply [Section 7(1)(c)]

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Activities/Transactions to be treated as supply of goods or
supply of services[Section 7(1A)]
Schedule II to the CGST Act contains the list of activities/transactions which have
been classified either as supply of goods or supply of services. This has been done
to remove any ambiguity.

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Activities/Transactions to be treated as supply of goods or
supply of services[Section 7(1A)]

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Activities/Transactions to be treated as supply of goods or
supply of services[Section 7(1A)]

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What will NOT be a supply[Section 7(2)]
Schedule III to the CGST Act contains the list of activities/transactions which will
neither be treated as supply of goods nor a supply of services

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What will NOT be a supply[Section 7(2)]
Schedule III to the CGST Act contains the list of activities/transactions which will
neither be treated as supply of goods nor a supply of services

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 Types of Supply
Intra-State Exempt
Based on Supply Supply
Composite
location Inter- State Supply
Supply Zero Rated
Supply Based on Mixed
Based on Tax
Treatment Combination Supply
Non Taxable
Supply Continuous
Inward
Supply Supply
Based on Taxable
Recipient Outward Supply
Supply

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 Types of Supply
Location of the supplier and the place of supply of
goods are in the same state/UT

Based on Exceptions:
location (i) supply of goods SEZ developer/unit.
(ii) goods imported into the territory of India till
they cross the customs frontiers
(iii) supplies made to a tourist u/s 15

Intra-State Inter- State

Supply Supply
Location of the supplier and the place of
supply are within India in 2 different state/UT
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 Types of Supply
Supply consisting of two or more taxable supplies
Composite (e.g., supply of car+ packaging + insurance).
Supply Treatment: Tax rate computed based on principal
supply i.e. car

Two or more supplies of g/s at a single price

Based on Mixed e.g., Supply of Diwali pack consisting of sweets,
Combination Supply chocolates, drinks and juices at a single price is a
mixed supply.
Treatment: Tax rate computed based on product with
the highest tax rate

Continuous Supply of g/s, which is provided on continuous

Supply basis/with recurring invoices
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 Types of Supply
"Zero Rated Supply" means any of the following supplies of g/s/b, namely:
• Export or Supply of g/s/b to a SEZ developer or unit.
• Export of goods means taking goods out of India to a place outside India.
• Export of services means the supply of any service when,

Supplier In India

Recipient Outside India

Payment In Foreign Country

Not merely establishments of a distinct

Payment person
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 Types of Supply

Inward Supply It means Receipt of goods or services

Based on
Recipient

Outward It means supply of goods or

Supply services

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 Types of Supply
"Exempt Supply" means supply of any goods or
services which attracts nil rate of tax or which may be
Based on Tax wholly exempt from tax under and includes non-
taxable supply.

Treatment Zero Rated Supply" means export or supply of goods or

services to a Special Economic Zone developer or a
Special Economic Zone unit.

Exe Zero Non Taxa Non-taxable means supply of any goods or services
Taxabl which is not leviable to tax under GST
mpt Rated ble
e
Supp suppl Suppl Supp
ly y y ly
Supply on which tax shall be leviable under GST
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Place of Supply (PoS)
• GST is a destination based tax, i.e., the goods/services
will be taxed at the place where they are consumed and
not at the origin.
• So, the state where they are consumed will have the
right to collect GST.
• This, in turn, makes the concept of place of supply
crucial under GST as all the provisions of GST revolves
around it.

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PoS of goods other than import and export [Section
10 of IGST Act]
Section Supply PoS
10(1)(a) Involves movement of goods whether by the Location of the goods when the movement
supplier or recipient or by any other person of the goods terminates for delivery to the
recipient.

10(1)(b) Bill to Ship to Model Assumed that the 3rd person has
(Goods are delivered by the seller to a recipient or received the goods & PoS of such goods will be the
any other person on the direction of 3 rd person) principal place of business of 3rd person

10(1)(c) No movement of goods , either by the Location of such goods at the time of delivery to
supplier or recipient . the recipient

10(1)(d) The goods are assembled or installed at site Place of such installation or assembly

10(1)(e) Goods supplied on board a conveyance, including Location at which such goods are taken on
vessels, aircraft, train or motor vehicle board
10(2) Where PoS cannot be determined Determined in such manner as may be prescribed
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PoS of goods imported into or exported from India
[Section 11 of IGST Act]
Section Supply PoS GST
11(a) Goods imported into India Location of Importer Always IGST on imports

11(b) Goods exported from Location outside India Exports are exempted
India

Example 1- Import Ms. Malini imports school bags from China for her shop (registered in Mumbai)
PoS: Mumbai GST: IGST
Example 2- Export Ms. Anita (Kolkata) exports Indian perfumes to UK
PoS: Kolkata GST: Exempted 24
 PoS of Services within India
[Section 12 of IGST Act]
12(1) Determine the PoS of services where the location of supplier and of recipient of
services is in India.

12(2) Different Cases Place of supply of services

• Supply made to registered Location of Recipient
Person
• Supply made to unregistered If location of the recipient available:
person
Location of Recipient
If location of the recipient not
available:

Location of Supplier
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 PoS of Services within India
[Section 12 of IGST Act]
Sec 12 (3): Services in relation to an Immovable property/boat/vessel Where immovable property is
located in India:
Services including those of:
PoS is location of such
(a) architect, interior decorator, engineers, estate agents, etc.
immovable property
(b) lodging accommodation by hotel, inn, guest house, home stay, club,
house boat or any other vessel.
(c) renting and leasing of immovable property
(d) providing accommodation for organizing official, social, cultural, Where immovable property is
religious or business function. located outside India:
(e) Services ancillary to above PoS is location of recipient

Sec 12(4): Performance based Services

This covers supply of restaurant and catering services, personal grooming, fitness and health services.
PoS: Location where the services are actually performed.
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 PoS of Services within India
[Section 12 of IGST Act]
Sec 12 (5): Training and Performance Appraisal Services:
• Supply made to a registered person- Location of Recipient
• Supply made to an unregistered person- Location where services are actually performed

Sec 12(6): Services by way of admission to any event

This covers services provided by way of admission to a cultural, artistic, sporting, scientific, educational,
entertainment or amusement park.
PoS: Place where the event is actually held or such other place is located

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 PoS of Services within India
[Section 12 of IGST Act]
Sec 12(7): PoS of services provided by way of
Situations
Organisation of a cultural, artistic, sporting, educational or
entertainment event including supply of services in relation
to a conference fair or exhibition.
- Services ancillary to org. of any of the events given above
- Assigning of sponsorship to such events
PoS of services
• Supply to registered person- Location of
registered person
• Supply to Unregistered person (event held
in India)- Place where the event is actually
held
• Supply to Unregistered person (outside
India)- Location of recipient

Sec 12(8): Services pertaining to transportation of goods (by mail or by courier)

-When the recipient of service is a registered person- PoS will be the location of the recipient
-When the recipient of service is not a registered person- PoS will be the location at which such goods are
handed over for their transportation.
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 PoS of Services within India
[Section 12 of IGST Act]
Sec 12(9): Services pertaining to transportation of passengers
-If such services made to Registered Person: PoS is the location of such person or
-If such services made to an unregistered person: PoS is the place where the passenger embarks on the
conveyance for a continuous journey
Where place of embarkation not known, apply section 12(2)

Sec 12(10): Supply of services on board a conveyance, including a vessel, aircraft, train or motor vehicle.
PoS is the location of the first scheduled point of departure of that conveyance for the journey.

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 PoS of Services within India
[Section 12 of IGST Act]
Sec 12(11): Supply of telecommunication services including data transfer, broadcasting, cable and
direct to home television services to any person
Situations PoS of services
Fixed line services Location where fixed line is installed

Post paid connection Location of billing address

Pre paid connection Through a selling agent Location of selling agent

Other cases Location where payment is receives

Payment through net Address of recipient as per record

banking/e-mode
If address not available, then location of supplier of services

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Time of Supply (ToS)
• GST is payable on supply of goods or services
• A supply consists of elements that can be separated in
time like purchase order, agreement, delivery,
accounting records, payment, etc.
• ToS indicates the point in time where the liability to pay
tax arises.

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 ToS of Goods [Section 12]
Sec 12(2): Sec 12(3): Sec 12(4):

Due date of issue of invoice

31(1) Movement of Before/at time of
goods removal of goods
involved

No Before
movement delivery/making
involved available for
delivery

31(4) Continuous Before/at time of

supply of issuance of
goods periodical return or
receipt of
periodical payment

31(7) Goods on Earlier of:

approval -before/at time of
basis supply
-6 months from
date of approval

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 ToS of Goods [Section 12]

Sec 12(5):

Sec 12(6):

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ToS of Services [Section 13]
Sec 13(2): Sec 13(3): Sec 13(4):

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 ToS of Services [Section 13]

Sec 12(5):

Sec 12(6):

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 Change in rate of tax in respect of Supply of
goods or services [Section 14]
Notwithstanding anything contained in Section 12 or 13, the ToS where there is a change in rate of tax in
respect of goods or services or both shall be determined in following manner:
• We need to see 3 events : supply date, invoice date and payment date
• We need to determine 2 issues: Old/New GST rate and ToS

Supply Issue of Receipt of Time of Supply GST Rate

of g/s/b invoice payment
Before Before After Date of Invoice Old
Before After Before Date of Payment Old
Before After After Earlier of Payment Date or Invoice New
Date
After After Before Date of Invoice New
After Before After Date of payment New
After Before Before Earlier of Payment Date or Invoice Old
Date 36
THANK
YOU
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