Definition of Supplies

Constituent

Section – 2(83) - “Outward Supply” in relation to a taxable person, means supply of goods or services or both, whether by sale, transfer, barter, exchange, licence, rental, lease or disposal or any other mode, made or agreed to be made by such person in the course or furtherance of business;

This would include Taxable Supply, Zero Rated Supply, Nil Rated Supply, Inward Supply liable to Reverse Charge and Non GST Supply.

Outward Supply includes almost all items of receipts/ income in the P & L Account relating to goods and services, in furtherance of business as explained in constituents of each of the above supply herein below.

Section 2(108) - “Taxable Supply” means a supply of goods or services or both which is leviable to tax under this Act;

This is self explanatory. For ease of understanding Taxable Supply would be that covered under Notification No. 1/2017-Central Tax (Rate), Dated 28th June, 2017 (Goods) and Notification No. 11/2017-Central Tax (Rate), Dated 28th June, 2017 (services) as amended from time to time.

Section 2(47) - “Exempt Supply” means supply of any goods or services or both which attracts nil rate of tax or which may be wholly exempt from tax under section 11, or under section 6 of the Integrated Goods and Services Tax Act, and includes non-taxable supply;

Basically this would cover supply of goods and services which are exempt under Notification No. 2/2017-Central Tax (Rate), and Notification No. 12/2017-Central Tax (Rate), both Dated 28th June, 2017 and non taxable supply defined separately.

In order to report details of exempt supply it is suggested that the above notifications may be quickly run through so as to list out the supply of goods and services exempt under the above notifications, relevant to the activities of your entity.

Interest receipts may have to be reported under exempt income since this is listed as exempt in serial number 27 of Notification No. 12/2017.

Dividend receipt, being distribution of income, in our view would not be a supply.

Likewise Electrical energy (HSN 2716) listed under serial number 104 of Notification No. 2/2017 is an exempt supply.

Section 2(78) - “Non-Taxable Supply” means a supply of goods or services or both which is not leviable to tax under this Act or under the Integrated Goods and Services Tax Act

Non Taxable Supply means a supply that is specifically listed as non taxable either under the schedule to the Act or in the provisions of the Act.  One instance would be supply of goods to job worker and return of goods by job worker under provisions of Section 143.

Section 2(98) - “Reverse Charge” means the liability to pay tax by the recipient of supply of goods or services or both instead of the supplier of such goods or services or both under sub-section (3) or sub-section (4) of section 9, or under sub-section (3) or subsection (4) of section 5 of the IGST Tax Act;

Goods and Services procured from certain specified supplier of Goods and services specified in Central Tax (Rate)Notification No.4/2017 (Goods) - and Notification 13/2017 ( Services) - (Services) and

Goods and Services procured from an unregistered supplier for value exceeding Rs.5,000/- per day per GSTIN from any or all the suppliers, (Notification No.8/2017-Central Tax (Rate) dated 28th June, 2017).

Section 2(67) -  “Inward Supply” in relation to a person, shall mean receipt of goods or services or both whether by purchase, acquisition or any other means with or without consideration

This is self explanatory. Includes receipt of supply of goods and services that are taxable, exempt, Nil rated, Zero rated or Non GST Supply with or without consideration.

Zero Rated Supply

Zero rated supply is export of goods and services and supply of goods and services to SEZ Units and Developers.

Nil Rated Supply

This expression is not defined and we understand this to mean goods or services for which NIL rate is specified.

Non GST Supply

We understand Non GST Supply to mean supply of goods and services that are excluded from the scope of supply under GST like supply of petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas and aviation turbine fuel and exclusions under the definition of “Goods” and “Service”