SUPPLY UNDER GST AND TYPES OF SUPPLY

1. SUPPLY AND
ITS TYPES
BY
DR. JYOTI KHARE
ASSOCITE PROFESSOR
GOVT. DEGREE COLLEGE
MALDEVTA,RAIPUR
DEHRADUN

2. WHAT IS SUPPLY ?
 Supply is defined to include all forms of supply of goods and/or services such as sale,
transfer, barter, exchange, license, rental, lease or disposal made or agreed to be made for
a consideration by a person in the course or furtherance of business. It also includes
importation of services for a consideration whether or not in the course or furtherance of
business.
 Normally a supply will involve two independent persons. However, GST makes transactions
between two branches of the same legal entity in different States/ countries or two different
registrations within the same State also taxable under GST.

3. TERMS USED FOR SUPPLY

4. PARAMETERS
……. which can be adopted to characterize a transaction as supply:
▪ Supply of goods or services. Supply of anything other than goods or services does not
attract GST
▪ Supply should be made for a consideration
▪ Supply should be made in the course or furtherance of business
▪ Supply should be made by a taxable person
▪ Supply should be a taxable supply
▪ Supply should be made within the taxable territory

5. Types of Supply
Based on recipient
Based on
combination
Based on tax
treatment
Based on
Location
Inward
supply
Outward
supply
Composite
supply
Mixed
supply
Continuous
supply
Territorial
supply
Inter state
supply
Exempt
supply
Non-
taxable
supply
Zero-rated
supply
Taxable
supply
Intra state
supply

6. ON THE BASIS OF RECIPIENT
 C) Inward supply- Inward Supply in relation to a person shall mean receipts of goods and/or
services whether by purchase, acquisition or any other means and whether or not for any
consideration. In simple word, any types of purchases are called inward supply.
 Outward supply - Outward Supply in relation to a person shall mean supply of goods and/or
services whether by sale, transfer, barter, exchange, license, rental, lease or disposal made
or agreed to make by such person in the course or furtherance of business. In simple word,
any types of sales are called outward supply.

7. ON THE BASIS OF COMBINATION
 B)Composite supply- two or more goods/services, which are naturally bundled
and supplied in with each other in the ordinary course of business, one of which is a
principal supply. It means that the items are generally sold as a combination. ex- tooth
brush.
 Mixed supply- Any combination of goods and services, by a taxable person, for a single
price, is called a Mixed Supply. A mixed supply will have the tax rate of the item which has
the highest rate of tax. Ex. contains a tie, a watch, a wallet and a pen - which could be
bundled and priced together
 Continuous supply- Continuous supply, as the phrase suggests, is an ongoing process. The
goods/services are supplied periodically and the payments are also made periodically,
often monthly. For example, supplying bricks to builders

8. ON THE BASIS OF LOCATION
Intra state- with in state
▪ Territorial waters - a belt of coastal waters that go at most 12 nautical miles (22 km;
14 mi) from the edge of a coastal state.
▪ Inter state supply- state to state supply

9. ON THE BASIS OF TAX TREATMENT
 Exempt supply: goods and services sold by the companies are free from Goods and
Services Tax (GST). No GST will be charged on these goods & services. For company and
business, GST paid on the assets, purchases or expenses for their businesses cannot be
claimed as Input Tax Credit. Exempted supply means 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 CGST Act or under section 6 of the IGST Act, and includes non-taxable supply
 Zero rated supply: The taxes paid on the supplies which are zero rated are refunded Ex.
export of goods or services or both; or supply of goods or services or both to a Special
Economic Zone developer or a Special Economic Zone unit. Input Tax Credit claimed is
allowed.
 Nil rated supply: rate of 0% is applicable, are listed in schedule 1 under GST rate schedule.
Example of Nil rated supplies are salt, jaggery, cereals etc. No input tax credit

10. CONTINUE…………….
 Non Taxable Supply is supply under section 7 of the act which is not chargeable to tax due
to excluded by charging section i.e by section 9 of the Act (and activities and transaction
specified in schedule III ). Hence supply of alcoholic liquor for human consumption,
petroleum crude, high speed diesel, motor spirit, natural gases and aviation turbine fuel is a
non taxable supply.
 Taxable supply:
“Taxable supply” means a supply of goods or services or both which is leviable to tax under
Central Goods and Service Tax Act, 2017.

11. SUPPLY

12. THANK YOU