Differentiation of Supply of Goods or Service under GST
Activities considered as Supply of Goods
Transfer of title in goods – Ex. Sale of goodsAny transfer of title in goods under an agreement which stipulates that the goods shall pass at a future date upon payment of full consideration – Ex. When an agreement is drafted for Sale of goods at future dateTransfer or disposal of any goods as assets of a business either with or without consideration – Ex. Disposal of an asset as scrap either for consideration or notWhere any person is no longer a taxable person or ceases to be taxable person, the goods which form part of the assets of his business shall be deemed to be supplied by him in the course or furtherance of his business immediately before he ceases to be a taxable person, unless – The business is transferred as a going concern to another person or The business is carried on by a personal representative who is deemed to be a taxable person Ex. Where B Co. ceases to be a taxable person and the goods as assets of the company will be deemed to be supplied unless the any of above two conditions is satisfied Goods supplied by an unincorporated association or body of persons to any of its member for consideration either by immediate cash or deferred payment
Activities considered as Supply of Goods
Transfer of right in goods or of undivided share in goods without transfer of title of such goods – Ex. Renting of MachineryLease, tenancy, easement, licence to occupy landLease or letting out of any commercial, industrial building and also residential complex if it is let or lease out for commercial purpose, either wholly or partlyJob work service on principal’s goodsWhen the goods is held or used for the purpose of the business of a person, carrying on a business, is used for personal use or made available for other than business purpose, with or without considerationRenting of immovable propertyConstruction of building, civil structure including a complex or building intended for sale to a buyer, except where the entire consideration is received after issuance of completion certificate or after its first occupation whichever is earlier – Ex. Sale of building after completion of construction is not considered as supply of service. Whereas sale of building during construction is considered as supply of services.Temporary transfer or permitting use of any intellectual property right – Ex. Music rightsdevelopment, design, programming, customisation, adaptation, upgradation, enhancement, implementation of information technology softwareAgreeing to the obligation to refrain from an act, to tolerate an act or situation or to do an actTransfer of the right to use any goods for any purpose for immediate cash or deferred payment or other valuable consideration – whether or not for a specified periodWorks contract servicesSupply, by way of service, of food or any drink for human consumption other than alcoholic liquor for consideration
Author Mr.M.Udaya Chandran, M.Com – Email: uday.gstguide@gmail.com Recommended Articles
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