Understanding Goods and Services The discussion begins with examples to differentiate between goods, services, or neither. Items like telecom towers (immovable), lifts (attached but movable), trees attached to the earth (immovable) are categorized as either goods or services based on their nature. Movable items such as cars and mobile phones are classified as goods while actionable claims like lottery tickets fall under specific categories.
Supply vs Non-Supply Scenarios Various scenarios of supply transactions were analyzed: selling jewelry for cash is a supply; bartering laptops for rings depends on whether it's in the course of business. Transactions involving exchange without monetary consideration may still qualify if they meet certain conditions related to business activities.
Taxation Principles in Supply Contexts GST applies when there’s an activity done for consideration within a business context—this includes sales, exchanges, rentals etc., provided it aligns with defined taxable events under GST laws. The importance lies in understanding what constitutes 'consideration' and its role in determining taxability.
'Club-Member Relationship Under Tax Laws' Clarified by Kolkata Club Case Law. 'Clubs’ providing services/goods to members was debated legally until clarified that clubs/members should be treated separately regarding taxation purposes ensuring any transaction qualifies fully taxable irrespective mutuality principle previously argued against imposing taxes hereon
Understanding Supply in GST Supply is the taxable event under GST, encompassing all forms of sale, transfer, barter, exchange made for consideration during business activities. Consideration includes monetary and non-monetary exchanges or acts done in return. Goods are movable properties excluding money and securities; services include anything other than goods.
Distinct Persons Under GST Entities registered separately within a state or across states under one PAN are treated as distinct persons. Transactions between such entities qualify as supply even without consideration if conducted during business operations.
Permanent Transfer of Business Assets with ITC Claimed When assets on which Input Tax Credit (ITC) has been claimed are permanently transferred without consideration, it qualifies as supply under Schedule 1 Paragraph 1 of Section 7(1)(c).
'Related Person' Supplies Without Consideration 'Related person' transactions like gifts exceeding Rs.50k to employees become supplies when linked to furtherance of business per Schedule I Paragraph II guidelines.
'Principal-Agent Relationship Clarified by Circulars. Transactions where agents issue invoices in their name while selling principal's goods classify them distinctly from commission-based relationships according circular clarifications ensuring clarity around agent-principal dynamics involving invoicing practices determining whether they fall into schedule paragraph three criteria defining consignment versus brokerage arrangements respectively .