Supply - Sec. 7 of CGST Act

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Supply - Sec. 7 of CGST Act by Mind Map: Supply - Sec. 7 of CGST Act

1. S. 7(1) - Inclusions

1.1. S. 7(1)(a) - Any activity for consideration in the course or furtherance of business

1.1.1. S. 2(52) - Goods

1.1.1.1. Means

1.1.1.1.1. Movable property

1.1.1.2. Includes

1.1.1.2.1. Actionable Claim

1.1.1.2.2. Growing crops, trees etc., agreed to be severed before supply

1.1.1.3. Excludes

1.1.1.3.1. Money

1.1.1.3.2. Securities

1.1.2. S. 2(102) - Services

1.1.2.1. Excludes

1.1.2.1.1. Goods

1.1.2.1.2. Money

1.1.2.1.3. Securities

1.1.2.2. Includes

1.1.2.2.1. Transaction in money for a separate consideration

1.1.3. S. 2(17) - Business

1.1.3.1. Generic Activities

1.1.3.1.1. Trade, Commerce, Manufacture, Profession, Vocation, Adventure, Wager

1.1.3.1.2. Incidental or ancillary to above

1.1.3.1.3. Profit motive or not

1.1.3.1.4. Irrespective of continuity or frequency

1.1.3.2. Specific Activities

1.1.3.2.1. Supply in connection with commencement or closure of business

1.1.3.2.2. Provision of facilities or benefits by club, association or society to its members

1.1.3.2.3. All activities of race club incl. licence fee charged and activities of totaliser

1.1.3.2.4. Accepting a position in the course or furtherance of business

1.1.3.2.5. Admission to any premises for a consideration

1.1.3.2.6. Activities of Government

1.1.4. S. 2(32) - Consideration

1.1.4.1. Monetary

1.1.4.2. Non monetary

1.1.4.2.1. Goods

1.1.4.2.2. Act or forbearance

1.1.4.3. Excludes

1.1.4.3.1. Refundable deposits

1.1.4.3.2. Subsidy from CG/SG

1.1.5. S. 2(84) - Person

1.1.5.1. Person under Income Tax + CG + SG + UT

1.2. S. 7(1)(b) - Import of Services for a consideration whether or not in the course or furtherance of business

1.2.1. OIDAR Services

1.2.1.1. NTR

1.2.1.1.1. Taxable - FCM

1.2.1.2. Other than NTR

1.2.1.2.1. Taxable - RCM

1.2.2. Other services

1.2.2.1. NTR

1.2.2.1.1. EXEMPTED

1.2.2.2. Other than NTR

1.2.2.2.1. Taxable - RCM

1.3. S. 7(1)(c) - Activities in Schedule I (DRIP) without consideration, in the course or furtherance of business

1.3.1. D - Disposal of business assets on which ITC has been availed

1.3.2. R - Related party transactions incl. transactions between distinct persons

1.3.2.1. Related persons

1.3.2.1.1. Officer or directors in one others business

1.3.2.1.2. Partners

1.3.2.1.3. Employer - Employee

1.3.2.1.4. One person holding 25% or more in two

1.3.2.1.5. One person controlling other

1.3.2.1.6. Two persons controlled by a third person

1.3.2.1.7. Together controlling third person

1.3.2.1.8. Family

1.3.2.1.9. Sole selling agent

1.3.2.2. Distinct persons - Multiple registrations of same person

1.3.3. I - Import of Services by a person from a related person or another establishment outside India

1.3.4. P - Principal Agent transactions, where agent is acting on behalf of principal

1.3.4.1. If agent raises invoice to buyer - Principal sending goods to agent - Supply u/s 7(1)(c)

1.3.4.2. If principal raises invoice to buyer - Principal sending goods to agent - Not a supply

2. S. 7(2) - Exclusions

2.1. S - Soverign Functions of Government

2.2. P - Posts i.e. Government, Constitutional & Nominated

2.3. A - Actionable Claims other than lottery, betting & gambling

2.4. L - Legal Fees i.e Fee collected by Court or Tribunal

2.5. L - Land Sale including sale of building where entire consideration is received after obtaining completion certificate or first occupation, whichever is EARLIER

2.6. E - Employee to employer in the course of employment

2.7. D - Death related i.e. Funeral, Burial, Crematorium, Mortuary incl. transportation of deceased

2.8. S - Sale of goods before import i.e. High Seas Sale

2.9. L - Liquor Licence

2.10. O - Outside the country movement of goods

2.11. W - Warehoused goods sale

3. S. 7(1A) - Classification of Supply into goods or services

3.1. Movable Property

3.1.1. Transfer of title - Present or future

3.1.1.1. G

3.1.2. Transfer of right

3.1.2.1. S

3.2. Immovable property

3.2.1. Transfer of title

3.2.1.1. Not a Supply

3.2.2. Transfer of right

3.2.2.1. S

3.3. IPR

3.3.1. Temporary transfer

3.3.1.1. S

3.3.2. Permanent transfer

3.3.2.1. G

3.4. Composite transactions

3.4.1. Works Contract

3.4.1.1. S

3.4.2. Information Technology Software

3.4.2.1. S

3.4.3. Supply of food - Restaurant or catering

3.4.3.1. S

3.5. Job work

3.5.1. S

3.6. Supply by association or society to its members

3.6.1. Facilities or benefits

3.6.1.1. S

3.6.2. Sale of goods

3.6.2.1. G

3.7. Business assets

3.7.1. Permanent transfer or disposal

3.7.1.1. G

3.7.2. Put to private use

3.7.2.1. S

3.8. Residuary

3.8.1. Doing an act, not doing an act or tolerating an act

3.8.1.1. S

4. S. 7(3) - CG on the recommendations of GSTC can classify GOODS as SERVICE & Vice versa.

5. Special Points

5.1. Supply by employer to employee

5.1.1. Covered under offer documents - Not a Supply

5.1.2. Gifts

5.1.2.1. Upto ₹ 50,000 p.a per employee - Not a Supply

5.1.2.2. Beyond ₹ 50,000 p.a. per employee - Entirely Supply u/s 7(1)(c)

5.2. Transactions between distinct persons

5.2.1. Movement of conveyances transporting goods or passengers; Movement of tools, spares for consumption - Not a Supply

5.2.2. Other Cases - Supply u/s 7(1)(c)

5.3. Interest collected by delcredere agent

5.3.1. Agent acting on behalf of principal - Interest is chargeable to GST

5.3.2. Agent not acting on behalf of principal - EXEMPTED under GST

5.4. PSLC

5.4.1. Always Supply of goods & deemed as interstate supply

5.4.2. Taxable in the hands of recipient - RCM