Chapter 1: Supply Under GST

Vocabulary practice flashcards generated from Chapter 1 notes on Supply under GST, covering essential statutory definitions, concepts, and schedules under the CGST Act, 2017.

Taxable Event

Any transaction or occurrence that results in a tax consequence. Under GST, the single comprehensive taxable event is the 'supply of goods or services or both'.

Goods [Section $2(52)$]

Every kind of movable property other than money and securities, but includes actionable claims, growing crops, grass, and things attached to or forming part of the land which are agreed to be severed before supply or under a contract of supply.

Services [Section $2(102)$]

Anything other than goods, money, and securities, but includes activities relating to the use of money or its conversion by cash or by any other mode, from one form, currency, or denomination, to another form, currency, or denomination for which a separate consideration is charged; includes facilitating or arranging transactions in securities.

Principal [Section $2(88)$]

A person on whose behalf an agent carries on the business of supply or receipt of goods or services or both.

Agent [Section $2(5)$]

A person, including a factor, broker, commission agent, arhatia, del credere agent, an auctioneer or any other mercantile agent, who carries on the business of supply or receipt of goods or services or both on behalf of another.

Family [Section $2(49)$]

(i) The spouse and children of the person, and (ii) the parents, grand-parents, brothers, and sisters of the person if they are wholly or mainly dependent on the said person.

Consideration [Section $2(31)$]

Any payment made or to be made (in money or otherwise) or the monetary value of any act or forbearance, in respect of, in response to, or for the inducement of the supply of goods/services, excluding subsidies given by Central/State Governments. Deposits are considered consideration only when applied by the supplier to such supply.

Actionable Claim [Section $2(1)$]

A claim to any debt, other than a debt secured by mortgage of immovable property or by hypothecation or pledge of movable property, or to any beneficial interest in movable property not in possession of the claimant, which civil courts recognize as affording grounds for relief.

Manufacture [Section $2(72)$]

Processing of raw material or inputs in any manner that results in the emergence of a new product having a distinct name, character, and use.

Money [Section $2(75)$]

Indian legal tender or any foreign currency, cheque, promissory note, bill of exchange, letter of credit, draft, pay order, traveller cheque, money order, postal/electronic remittance, or any instrument recognized by the RBI when used as consideration to settle an obligation, excluding currency held for numismatic value.

Taxable Supply [Section $2(108)$]

A supply of goods or services or both which is leviable to tax under the CGST Act.

Taxable Territory [Section $2(109)$]

The territory to which the provisions of the CGST Act apply.

Supplier [Section $2(105)$]

The person supplying goods or services or both, including an agent acting as such on behalf of such supplier. Also includes persons organizing or managing digital/electronic platforms for specified actionable claims.

Recipient [Section $2(93)$]

The person liable to pay consideration when payable; the person to whom goods are delivered/made available when no consideration is payable; or the person to whom service is rendered when no consideration is payable, including an agent acting on behalf of the recipient.

Business [Section $2(17)$]

Includes any trade, commerce, manufacture, profession, vocation, adventure, wager or similar activity whether or not for pecuniary benefit; any incidental or ancillary activity; any supply or acquisition of capital assets/services upon commencement/closure of business; facilities provided by clubs/associations to members; admission to premises for consideration; and activities of public authorities.

Cost Petroleum

The value of petroleum which an oil exploration and production contractor is entitled to take in a year for recovery of the contract costs incurred in exploration, development, production, and payment of royalty under a Production Sharing Contract.

Profit Petroleum

The total value of petroleum produced and saved from a contract area in a particular period, as reduced by cost petroleum, which is shared between the contractor and the Government as per the Production Sharing Contract.

Del-Credere Agent (DCA)

A selling agent engaged by a principal to assist in the supply of goods or services who guarantees payment to the supplier and may extend short-term transaction-based credit/loans to the buyer.

Specified Actionable Claim [Section $2(102\text{A})$]

Actionable claims involved in or by way of betting, casinos, gambling, horse racing, lottery, or online money gaming.

Online Money Gaming [Section $2(102\text{A})$]

Online gaming in which players pay or deposit money or money's worth, including virtual digital assets, in expectation of winning money or money's worth, whether or not the outcome is based on skill, chance, or both.

Voucher [Section $2(118)$]

An instrument where there is an obligation to accept it as consideration or part consideration for a supply of goods or services or both, where the goods or services to be supplied or identities of potential suppliers are indicated on the instrument or related documentation.

Taxable Person

A person who is registered or liable to be registered under Section $22$ or Section $24$ of the CGST Act.

Exempt Supply [Section $2(47)$]

Supply of any goods or services or both which attracts nil rate of tax or which may be wholly exempt from tax under Section $11$ of the CGST Act or Section $6$ of the IGST Act, and includes non-taxable supply.

Composite Supply [Section $2(30)$]

A supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply.

Principal Supply [Section $2(90)$]

The supply of goods or services which constitutes the predominant element of a composite supply and to which any other supply forming part of that composite supply is ancillary.

Mixed Supply [Section $2(74)$]

Two or more individual supplies of goods or services, or any combination thereof, made in conjunction with each other by a taxable person for a single price where such supply does not constitute a composite supply.

Works Contract [Section $2(119)$]

A contract for building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration, or commissioning of any immovable property wherein transfer of property in goods is involved.

Schedule I of CGST Act

Specifies activities to be treated as supply under GST even if made without consideration, including permanent transfer of business assets with ITC, supplies between related/distinct persons in business, principal-agent supplies, and import of services from related persons in business.

Schedule II of CGST Act

Specifies activities or transactions that are to be treated specifically either as a supply of goods or as a supply of services.

Schedule III of CGST Act

Specifies activities or transactions which shall be treated neither as a supply of goods nor as a supply of services (Negative List/Non-supplies under GST).