GST: FAQ’s on Meaning and Scope of Supply (Section 3)
Q1. What are different types of supplies covered under the Supply definition
Ans. Supplies include all forms of supply of goods and/or services such as sale, transfer, barter, exchange, license, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business Supplies made without consideration – Schedule I
Determining what is to betreated as goods / services – Schedule II
Activities or Transactions neither Supply of goods nor services- Schedule III& IV
Q 2. What are different forms of supply of goods
Ans. Indicative list of supply of goods viz., sale, transfer, barter, exchange, license, rental, lease or disposal.
Q 3. What is Composite Supply and taxability of such supply
Ans. Supplies involving two or more goods or services or any combination thereof, naturally bundled for supply in the ordinary course of business, wherein one of the components having essential character is known as principle supply. This composite supply shall be taxable at the rate applicable to principle supply.
For Example: In a natural bundle of supply of goods and insurance service on transportation, supply of goods is the essential supply and the rate applicable to such goods would be applicable for this composite supply.
Q 4. What is Mixed Supply and taxability of such supply
Ans. A supply involving two or more supplies of goods or services or any combination thereof and which is not a composite supply, is defined to be a mixed supply(i.e. not naturally bundled or there is no one principle supply in the mix of supplies). Whole supply would be taxable at the highest rate applicable for the components of such
mixed supply.
For Example: A supply of a package consisting of canned foods, sweets, chocolates, cakes, dry fruits, aerated drink and fruit juices when supplied for a single price is a mixed supply. Each of these items can be supplied separately and is not dependent on any other. It shall not be a mixed supply if these items are supplied separately. Highest rate of GST for the commodities in the mixed supply would be applied for the entire supply.
Q 5. Does Import of services get covered under the definition supply
Ans. Yes, Imports of services get coveredLaw read with Para 4 of Schedule I.
GST: FAQ’s on Meaning and Scope of Supply (Section 3), GST, Meaning and scope of supply under GST, Section 3 GST Scope of Supply, GST: Meaning and Scope of Supply
MCQ
Meaning and Scope of Supply (Section 3)
Q 1. What does Supply include
(a) Goods
(b) Services
(c) Goods or Services
(d) Goods and Services
(e) Goods and / or Services
Ans. (e) Goods and / or services
Q 2. What are different types of supplies covered under the Supply definition
(a) Supplies made with consideration
(b) Supply made without consideration
(c) Supplies covered under schedules
(d) All of the above
Ans. (d) All of the above.
Q 3. What are different forms of supply of goods
(a) Sale
(b) Transfer
(c) Barter
(d) Specified in Section 3 of the CGST Act.
Ans. (d) Specified in Section 3 of the CGST Act.
GST: FAQ’s on Meaning and Scope of Supply (Section 3), GST, Meaning and scope of supply under GST, Section 3 GST Scope of Supply, GST: Meaning and Scope of Supply