The economic sector includes many taxed supplies just as GST. There are numerous vulnerabilities and ambiguities emerging out of the definition of a “supply” in the A New Tax System (Goods and Services Tax) Regulations 1999. The definition of supply is given in GST, Section 7 Which states that the expression of supply includes all forms of supply of goods abd services, it also includes sale, transfer, barter, exchange, license, giving goods on rent, lease or demolition of anything or agreed to be mad for consideration by any individual who is in the process of business, section 7 (b) also includes that supply of import service in return of consideration whether or not in the course of the business is a legit supply.
Definition of GST- Section 7 in Brief Section 7: Defines the term Supply in GST act. Section 7 (1) (a): The following clause and sub-clause Defines if anything such ad goods or services are transfer for consideration in the due process of the business. Section 7 (1) (b): The following sub-clause means that any services which includes importing anything ay it be goods or services for consideration it will be defined as supply whether or not it is in the due process of the business. Section 7 (1) (c): The following sub-clause means the pursuit stated in schedule 1 are defined as supplies if done or made without consideration. Schedule 1: The Following pursuit are to be treated under Schedule 1 as supplies without consideration. 1. Permanent transfer or scrapping of business assets where input tax credit has been benefited on such assets, such assets with or without consideration are to listed as supplies under Schedule 1. 2. Supply of either goods or services or both between business men or any related individuals as defined in section 25, the whole due process of the same should in the process of business. 3. The gifts which do not exceed fifty thousand rupees in a single financial year by an employer to employee shall not be considered as supply. 4. The supply also includes principal agent relationship in two ways if agent on behalf of the principal receives some goods or the agent on behalf of principal send some goods.
- Import of administrations by an available individual from a related individual or from any of his different foundations outside India, in the course or on the other hand promotion of business. Section 7 (2) (a): The clause 2 of the section 7 nevertheless is related to clause 1 of the section 7. The sub-clause a of the section 7 (2) states that pursuit mentioned in schedule 3 are neither supply of goods nor supply of services. Schedule 3: the following schedule consist of services such as funeral assistance, employee working for employer and sale of land etc. Schedule 3 contains most of the activities which help our society to develop such as work done in parliament or courts. Section 7 (2) (b): Pursuit listed in schedule 3 if done by central government or any statuary authority on the recommendation of the government council than the pursuit will be treated as neither supply of goods nor supply of services. Section 7 (3): The allocation in sub section (1) and (2), the Government may, on the suggestions of the Council, determine, by notification, the exchanges that are to be dealt with shall be treated as:
a- a supply of goods and not as a supply of services or vice-versa. References:
GST Bare Act