Monday, October 17, 2016

Taxable Event under GST

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

Trust intending to carry out charitable activities outside India entitled to sec. 12AA registration


a) The assessee-institution was formed vide a trust deed. It sought registration under section 12AA.

b) The DIT rejected the registration application as he was of view that the trust intended to carry out activities outside India.

c) The aggrieved-assessee filed the instant appeal.

The ITAT held as under:

1) Registration as per section 12AA by itself will not automatically confer the benefits of sections 11 and 12 to a trust, but the trust will get the benefit only on complying with the requirements of sections 11 & 12, which compliance can be examined by the assessing authority while processing the return filed by the trust. So long as the trust has objects which are charitable in nature, it is eligible for registration under section 12AA, unless there is a finding that the trust is not genuine.