the agent undertakes to receive such goods on behalf of re the idered as supply: Se ex Raghny & Sone seanagento sll fe ; : ote on its behalf. For this purpose, ABC Manufactures ue has supplied he poss to Raghav & Sons. Supply of goods by chamber e Raghav & Sons will qualify as supply even though n hav & Sons. | eee ns Located Outside India: i d Perso Import of Services from Relate: / Import of services by a taxable person from a related person or from any of his establishments located outside India a ane of business shall be treated as supply irrespective of the pr s - Example: ABC Associates received legal consultancy services from its head bttive located in Malaysia. The head office has rendered such services free of cost toits branch office. Since ABC Associates and the branch office are related persons, services received by ABC Associates will qualify as supply even though the head office has not charged anything fromit. Example: Sumit, a proprietor registered in Delhi, has sought architect services from his brother located in US with respect to his newly constructed house in Delhi. Although services have been reccived by Sumit without consideration from a related person, the transaction will not qualify as supply since the same has not been received in course or furtherance ofbusiness. consideration, whet the principal is also com: Example: ABC Manufa 2.3.3 Activites to be treated as Supply of goods/services Section 7(1)(d) of CGST Act read along with Schedule Il of CGST Actenlists various ‘matters/transactions which are to be treated as supply of elther goods or services. The tatters listed under Schedule Il are primarily those which had been entangled in litigation inthe earliérfegimé owing to their complex nature and siscéptibility to double taxa ° SL.No.| Nature of Transaction Nature of Supply 1. fa) Transfer of title in goods Supply of Goods b) Transfer of right in goods/undivided share ii without transfer of title in goods. ‘ngoods | Supply of Goods Transfer of title in goods under an a; i r igreement which stipulates that property shall pass at a futuredate, Sepply of Goods 2. i ; fa) Lease, tenancy, casement, license to occupyland Supply of Goods b) Lease or letting out of the building including a commercial, industrial or residential complex for business or commerce, either wholly orpartly c)Any treatment or process which is applied to another person’s goods. Example: Job work performed by ajob worker like dyeing of fabric in variouscolours. a) Goods forming part of business assets are transferred or disposed-off by/under directions of person carrying on the business so as no longer to form part of those assets, whether or not for consideration. Goods held/used for the purposes of the business are put to any private use or are used, or made available to any person for use, for any purpose other! than a purpose of the business, whether or not for a consideration, by or under the direction of a person carrying on a business, whether or not for consideration. b) Example: A director using company’s car for personal travels ©) Goods forming part of assets of any businesscarried on by a person who ceases to be a taxable person, shall be deemed to be supplied by him, in the course or furtherance of his business, immediately before he ceases to be a taxable person. Exceptions: > Business is transferred asa going concer to another person; or - Business is carried:on by a personal representative | who is deemed to be a taxable person Renting of immovable property Construction of a complex, building, civil structure or a part thereof, including a complex or building intended for sale to a buyer before its completion provided some part of the consideration is received before the issuance of completioncertificate c) Temporary transfer or permitting the use or enjoyment of any intellectual property right Supply of Goods | Supply of Goods Supply of Goods Supply of Goods Supply of Goods [8 Develorment, design, programming, customization,cement, Ton, enhancemens vationtechnology sofa : to refrain from an oe ol acl jituation, or to doan ee hots | supply 1) Transfer of right to use any goods for pe es supp! ified peri ¢ steppe ane consideration deferred payment or other val Following Composite Supplies. supply of Goods a) Works Contract {Works contract has been defined ws 2(119) o' CGST Act to mean a contract for building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration ou commissioning ofany immovable property wherein transfer of property in goods (whether as goods or, in some other form) is involved in the execution of such contract} Supply of food or any other article for human} Supply of Goods consumption or any drink by way of or as part of| any service or in any other manner whatsoever Sepply of goods by any unicorporated association Supply of Goods bd dy of persons to a member thereof for cash, ome Payment or other valuable consideration me A local club supplies snacks to its pouring its monthly meeting for a nominal]. Payment, ss tg Rea | ope of Section 72) Shall be treated neither as su r . ry, Su iviti Section7(2)(a) - Activities Under Schedules ioe aaa ost following activities co 7 o g vered ‘Negative List’ under the GST gee MOFCGST Act can be termed H ot Bim StTices by an Emy I * | tployment, iployee to his Employer in the Course sre a M relation to hi ry IS ra adaptation, Upe implementation ofinform: 1c) Agreeing to the oblig to tolerate an act or as!> Services provided by i i y an employee to his employer di employment are not taxable under GST law, ining te mmo of > Services provided outside the cours iderati 1 ¢ of employment for a consideration would qualify as a supply and thus liable to GST. Example: Ifan employee provides private coaching to his employer's children, such services would not get covered under the above exclusion and would be liable to GST. > Amounts paid by the employer to the employee for premature termination of a contract of employment are treated as amounts paid in relation to services provided by the employee to the employer in the course of employment. Thus, such amount would not be liable to GST. “Whether regarded as ‘services carried out during the course of employment”? ‘Yes. These are services provided by the worker in the course of employment. Nature of Transaction Services provided by a casual worker to employer who gives wages on daily basis to the worker Tn case the casual workers are employed = bya contractor, like a building contractor Yes. Services provided by the casual workers to the contractors are in the or security agency services, who deploys course ofemployment. them for execution of a contract or for = However, services provided by the provision of securityservices contractor to his client by deploying such workers would not be a service provided by the workers to the client in the course of employment. The consideration received by the contractor would therefore be taxable if other conditions of taxability arepresent. No. Services provided on contract basis (ie principal-to-principal basis) are not services provided in the course of employment. ished under any Law for the time being Services provided on contract basis by a person to another 2. Services by any Court or Tribunal estab! in force 3. Functions/Duties Performed By Following Persons: > the functions performed by the Members of Parliament, Members of State Legislature, Members of! ‘Panchayats, Members of ‘Municipalities and Members of other local authorities;