The term ‘supply’ is very wide and it includes all forms of supply of goods, or services or both. Illustrative list specifies forms of supply such as Sale, Transfer, Barter, Exchange, Licence, Rental, Lease or Disposal made or agreed to be made—
— for a consideration
— by a person
— in the course or furtherance of business.
Since none of the aforesaid eight terms namely Sale, Transfer etc. have been defined in the Central Goods and Services Tax Act, 2017 or Integrated Goods and Services Tax Act, 2017; reliance has been placed on leading online dictionaries for the purpose of ascertaining the meanings of the said terms in the following table:
![[Section 7(1)(a)]- All Forms of Supply of Goods or Services or both under GST [Section 7(1)(a)]- All Forms of Supply of Goods or Services or both under GST](https://i0.wp.com/incometaxmanagement.in/wp-content/uploads/2021/06/Section-71a-All-Forms-of-Supply-of-Goods-or-Services-or-both-under-GST.jpg?resize=1000%2C500&ssl=1)
Sale | The act of selling; specifically : the transfer of ownership of and title to property from one person to another for a price |
The exchange of a commodity for money; the action of selling something | |
The exchange of goods or services for an amount of money or its equivalent; the act of selling | |
Transfer | To move someone or something from one place, vehicle, person, or group to another |
To make something the legal property of another person | |
Barter | To exchange goods for other things rather than for money |
To trade by exchanging one commodity for another: to trade goods or services in exchange for other goods or services | |
Exchange (goods or services) for other goods or services without using money | |
Exchange | The act of giving something to someone and them giving you something else |
To give up, part with, or transfer (one thing) for an equivalent | |
License | To give someone official permission to do or have something |
A permit from an authority to own or use something, do a particular thing, or carry on a trade | |
A contract allowing someone to use a proprietary product or service | |
Rental | An arrangement to rent something, or the amount of money that you pay to rent something |
A sum paid to someone for the use of (something, typically property, land, or a car) | |
Lease | A contract by which one conveys real estate, equipment, or facilities for a specified term and for a specified rent |
A contract granting use or occupation of property during a specified period in exchange for a specified rent or other form of payment. | |
Disposal | The act of getting rid of something, especially by throwing it away |
Final placement or riddance of wastes, excess, scrap, etc., under proper process and authority with (unlike in storage) no intention to retrieve. Disposal may be accomplished by abandonment, destruction, internment, incineration, donation, sale, etc. |
However, it is worth emphasizing here that besides the above illustrative forms of supply, there can be other forms of supply of goods or services or both.
(A) Future Supply shall also be covered
All forms of supply of goods or services or both made or agreed to be made shall be covered. The use of the expression “agreed to be made” points out that supply of goods or services or both in future shall also be subject to tax. It has been done intentionally to tax the advance received prior to the supply of goods or services or both except in the case of registered person whose aggregate turnover does not exceed Rs. 1.5 crore.
1. Since supply is an inclusive definition, anything that is falling under the meaning of the term “supply” will get covered under the taxable event.
2. The terms “goods”, “services”, “consideration” and “in the course or furtherance of business” have been discussed later in this Chapter. |
(B) [Section 7(1)(b)]- Import of Service for a consideration whether or not in course or furtherance of business
It may be noted that in the above case, only those import of services shall be treated as supply which are for a consideration even though such import of services may be in the course or furtherance of business or not. |
Example 1
X is a supplier of goods located in New Delhi. In July 2018, he has imported ‘Business Consultancy Services’ from China for a stipulated consideration of $50,000. The importation of service in the given case shall fall within the ambit of term ‘supply’ as it is for a consideration and in the course or furtherance of business and shall be liable to IGST.
Example 2
X is a supplier of goods located in New Delhi. In July 2018, he has imported ‘Architecture Services’ from a relative consultant located in China, without any consideration (monetary or non-monetary) for construction of his personal house. Since there is no consideration and it is for personal use, importation of service in the given case shall not fall within the ambit of term ‘supply’ and not liable to IGST.
However, in the above example if the import of Architecture Service is for a consideration, it shall fall within the scope of term ‘supply’ although services have been imported for personal purposes.