Meaning of Supply under GST Act

For an event the tax is imposed then that event is Taxable Event

Earning of income is taxable event under Income Tax Act. In the same way, supply of goods or service is taxable event under GST Act.

Meaning of Goods under GST Act

• Every kind of movable property
• Does not include the money and security
• Growing Crops, Grass, etc.,
• Actionable Claims - Schedule III (read with section 7)

Meaning of Services under GST Act

• Service does not include goods, money and securities, but it includes transaction in securities.

  For example Securities such as:

  • Shares
  • Debentures
  • Derivative
  • Government Securities
• Includes conversion of cash from one form of currency to another form of currency.
• Transaction in terms of money do not constitute service and is not a taxable event under GST Act.

  Example : Conversion of Rs.200/- note to 200 one rupee coins does amount to taxable event under GST act.

• Under Clause 75 of section 2 of the GST Act, the promissory note is included in the definition of money and not liable under GST Act.
• Sale, purchase, acquisition or assignment of Secured Debt