What Is Supply Under GST

Simply saying Supply under GST is sale of Goods or Services or Both, which are listed in Schedule III of CGST Act, by a Taxable Person for a Consideration but excludes

- Money & Securities

- Items specified in Schedule III of CGST Act

- such activities or transactions undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities, as may be notified by the  Government on the recommendations of the Council

The concept of ‘supply’ is the key stone of the GST architecture. The provisions relating to meaning and scope of supply are contained in Chapter II of the CGST Act read with various Schedules given under the said Act.

Section 7 and Section 8 of CGST Act covers the Meaning, Scope of Supply, Composite Supply & Mixed Supply. Supply includes all forms of supply of goods or services or both such as

- sale, transfer, barter, exchange, license, rental, lease or disposal made or agreed to be made for a consideration by a taxable person in the course or furtherance of business,

- importation of services, for a consideration whether or not in the course or furtherance of business,

- the activities specified in Schedule I, made or agreed to be made without a consideration,

- the activities to be treated as supply of goods or supply of services as referred to in Schedule II.

Elaboration-:

1. Supply should be of goods or services. Supply of anything other than goods or services like money, securities etc. does not attract GST.

2. Supply should be made for a consideration.

3. Supply should be made in the course or furtherance of business.

4. Supply should be made by a taxable person.

5. Supply should be a taxable supply.