Supply of Goods and Services

11 months ago

Supply of Goods and Services: What does it Mean?


Under the current indirect tax structure, the taxable event differs for each type of tax. The taxable events under the current indirect tax structure are captured below:


Supply is going to be altogether a new concept in the indirect taxation, far away from manufacture (central excise), provision of service (service tax) or sale (value added tax).

The taxable event under GST is the Supply of Goods and/Services. All taxes such as Central Excise, Service Tax and VAT/CST will be subsumed under GST, and the concept of manufacture of goods, sale of goods, and provision of services would no longer be relevant.

Thus, for every business, it is crucial to understand the relevance of supply which sets the scope of transactions liable for the levy of GST.

In relation to ‘supply’ for the purpose of GST, following points may be noted –

(1) supply shall be goods and/services

(2) supply should be made or agreed to be made

(3) supply should be for a consideration

(4) supply should be made by person

(5) supply should be made in the course of or furtherance of business

(6) supply shall include importation of service, irrespective of whether for consideration or not and whether in the course of or furtherance of business or not.

(7) supply shall include supply as per Schedule-I made without a consideration


Relevance of Supply under GST

The term ‘supply’ includes all forms of supply of goods or services, supplied or to be supplied, for a consideration, in the course of or for furtherance of business.

However, there are specific types of supplies mentioned in the law which need to be considered as supply even without a consideration.

Let us understand by categorising the different types of supply as;

  • Supplies made for a considerationin the course of or for furtherance of business
  • Supplies without consideration
  • Supplies made for a considerationwhether or not in the course of or for furtherance of business


Supplies made for a consideration in the course of or for furtherance of business


The following are considered as supply with consideration:


Stay tuned for more information.




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