Are you curious to know what is supply under GST? You have come to the right place as I am going to tell you everything about supply under GST in a very simple explanation. Without further discussion let’s begin to know what is supply under GST?
What Is Supply Under GST?
Supply is a critical concept in the Goods and Services Tax (GST) system. In GST, the tax is levied on the supply of goods and services. In this blog, we will discuss what supply means under GST, the types of supplies under GST, and how GST is calculated on supplies.
What Is Supply Under GST?
Under GST, supply means any transaction that involves the transfer of goods or services for consideration. It includes all forms of supply, such as sale, transfer, barter, exchange, license, rental, lease, and disposal. The term “consideration” refers to the payment made or to be made for the supply of goods or services.
Types Of Supplies Under GST
There are three types of supplies under GST: taxable supplies, exempt supplies, and zero-rated supplies.
- Taxable Supplies: Taxable supplies are supplies that are subject to GST. These include all supplies made for a consideration, except for exempt supplies and zero-rated supplies.
- Exempt Supplies: Exempt supplies are supplies that are not subject to GST. These include goods and services that are exempted from tax by the government.
- Zero-rated Supplies: Zero-rated supplies are supplies that are subject to GST at a rate of 0%. These include goods and services that are exported or supplied to Special Economic Zones (SEZs).
How GST Is Calculated On Supplies?
GST is calculated on the value of the supply of goods or services. The value of the supply is the amount paid or payable for the supply of goods or services, including any taxes or charges imposed by the supplier. The GST rate applicable to the supply depends on the type of supply.
For taxable supplies, the GST rate applicable depends on the type of goods or services supplied. The GST rates are 5%, 12%, 18%, and 28%.
For zero-rated supplies, the GST rate is 0%. The supplier is entitled to claim the input tax credit on the GST paid on inputs used for making the supply.
For exempt supplies, no GST is applicable, and the supplier is not entitled to claim input tax credit on the GST paid on inputs used for making the supply.
Conclusion
In conclusion, supply is a critical concept in the GST system. It refers to any transaction that involves the transfer of goods or services for a consideration. There are three types of supplies under GST: taxable supplies, exempt supplies, and zero-rated supplies. GST is calculated on the value of the supply of goods or services, and the rate applicable depends on the type of supply. Understanding supply is crucial for businesses to comply with GST regulations and to correctly calculate GST on supplies.
FAQ
What Are Supply And Scope?
The taxable event under GST shall be the supply of goods or services or both made for consideration in the course or furtherance of business. The taxable events under the existing indirect tax laws such as manufacture, sale, or provision of services shall stand subsumed in the taxable event known as ‘supply’.
What Do You Mean By The Supply Of Goods?
A supply of goods includes the following: the transfer of ownership of goods by agreement. the sale of movable goods on a commission basis by an auctioneer or agent. They need to be acting in their own name but on the instructions of another person.
What Is The First Supply Under GST?
First supplies of goods or services or both, upto an aggregate turnover of Rs 50 lakhs, made on or after the 1st day of April in any financial year. After crossing the limit of Rs 50 lakhs, tax at the normal rate will be payable. Tax at 6% is payable on aggregate turnover, which includes exempt turnover as well.
What Are The Different Types Of Supply?
There are five types of supply—market supply, short-term supply, long-term supply, joint supply, and composite supply.
I Have Covered All The Following Queries And Topics In The Above Article
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