1) Taxable event means an event on happening of which the charge is fixed. Supply is taxable event under GST.
2) GST is a tax on supply of goods and services. Supply includes all forms of supply where goods and/or services are supplied by a person for a consideration.
3) Earlier, excise duty is levied on manufacturing of goods, service tax is levied on provision of services and sales tax or VAT is levied on sale of goods. Under GST regime, all these existing concepts will be irrelevant.
4) The term “Supply” is not properly defined under Model GST law. An inclusive definition is given without defining meaning of supply.
5) To levy GST, these six conditions have to be satisfied:
a) There is supply of goods and / or services
b) Supply is for a consideration
c) Supply is made in the course or furtherance of business
d) Supply is made in the taxable territory
e) Supply is a taxable supply
f ) Supply is by a taxable person6) Even if all necessary conditions are not fulfilled, GST can be levied. Few transactions which will be treated as deemed supply are -
- Transfer of business assets without consideration
- Free samples distributed by taxable person
- Temporary application of business asset for personal purpose
- Asset retained by taxable person after de-registration