Supply under GST Vocabulary Flashcards

Vocabulary flashcards defining key terms, tax mechanisms, legal provisions, and classifications under Chapter 2: Supply under GST.

FCM (Forward Charge Mechanism)

A GST payment mechanism where GST is payable directly by the supplier of goods or services.

RCM (Reverse Charge Mechanism)

A GST payment mechanism where GST is payable by the recipient of goods or services instead of the supplier.

Intra-State Supply

A supply where the Location of Supplier (LOS) and Place of Supply (POS) are in the same State, attracting CGST and SGST.

Inter-State Supply

A supply where the Location of Supplier (LOS) and Place of Supply (POS) are in different States, attracting IGST.

Exempt Supply

Supplies that fall within the scope of GST but are granted tax exemption by the Government.

Non-Taxable Supply

Supplies that are not covered under GST law, such as Alcoholic liquor for human consumption and HP-MAN.

Zero-Rated Supply

Supplies consisting of exports of goods or services, or supplies made to Special Economic Zone (SEZ) units or developers.

Nil Rated Supply

Supplies of goods or services covered under GST that carry a tax rate of $0\%$.

Taxable Supply

All supplies of goods or services within the taxable territory that attract liability to tax under GST.

Goods (under GST)

Every kind of movable property, including actionable claims and growing crops, grass, and things attached to land agreed to be severed before supply, but excluding money and securities.

Specified Actionable Claims

Actionable claims classified as goods under GST, which include Lottery, Betting, Gambling, Casino, Online Gaming, and VDA [Crypto / Bit-Coins].

Services (under GST)

Anything other than goods, money, and securities, but including activities relating to the use of money or its conversion for consideration, and facilitating or arranging transactions in securities.

Section 7(1)(a)

The statutory provision defining general supply as all forms of supply of goods or services made for consideration in the course or furtherance of business.

Section 7(1)(aa)

The provision treating activities or transactions between an association, club, or similar entity and its members as a supply, deeming the members and entity to be two distinct persons.

Section 7(1)(b)

The provision establishing that the import of services for a consideration constitutes a supply, regardless of whether it is in the course or furtherance of business.

Section 7(1)(c)

The GST provision treating specific transactions listed in Schedule I as supplies even when made without consideration.

Distinct Persons

Persons who have obtained or are required to obtain more than one GST registration, whether in one State/UT or across multiple States/UTs, treated as separate persons in respect of each registration.

Section 7(1A)

The GST section classifying whether specific transactions constitute a Supply of Goods (SOG) or a Supply of Services (SOS).

Section 7(2) + Schedule III

The GST negative list specifying activities or transactions that are treated neither as a supply of goods nor as a supply of services.

Composite Supply

A supply consisting of two or more taxable supplies naturally bundled and supplied together in the ordinary course of business, taxed at the GST rate applicable to the principal supply.

Mixed Supply

A supply of two or more individual items bundled together for a single price not in the ordinary course of business, taxed at the highest GST rate among the bundled items.

Tenancy Rights (Pagadi)

An arrangement where tenancy rights are transferred or surrendered for lump sum tenancy premium consideration; treated as a supply of service taxable under GST and not as a sale of land or building.

Del-Credere Agent (DCA)

A selling agent who guarantees payment recovery to the principal and absorbs the risk of bad debts from customers.

Extended Warranty

An optional warranty coverage provided at or after the original supply; treated as part of a composite supply if sold by the original supplier with goods, or as a distinct supply of services if provided separately or by a third party.