Taxable Event of GST

"Taxable event" is that on happening of which the charge is fixed. It is that event which, on its occurrence, creates or attracts the liability of tax.

CHARGING SECTION IN ST

ST is on - (a) intra - state supplies (b) of goods and services or both (except supply of alcoholic liquor for human consumption and un-denatured extra neutral alcohol or rectified spirit used for manufacture of alcoholic liquor, for human consumption.)

The value will be as per section 15. Rate of GST will be notified by CG - max 20%

SUPPLY AS PER GST LAW

• All forms of supply of goods or service or both such as sale, transfer, barter, exchange, license, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business.
• Activities or transactions by a person, other than an individual, to its members or constituents or vice-versa, for cash, deferred payment or other valuable consideration
• Import of services, for a consideration whether or not in the course or furtherance of business.

Activities or transactions that are neither the supply of goods nor the supply of services

Activities or transactions undertaken by the CG, an SG or any local authority in which they are engaged as public authorities, as may be notified by CG - Section 7(2) of ST

Activities or transactions that will be taxable as 'supply' even if no consideration

A supply specified in schedule I, made or agreed to be made without consideration is 'supply' for purpose of ST Act - section 7(I)(c) of ST Act.

These transactions will be subject to GST, even if there is no consideration.

Schedule I (Section 7) - Activities to be treated as supply even if made without consideration

(1) Permanent transfer/disposal of business assets where input tax credit has been availed on such assets.

(2) Supply of goods or services or both between related person, or between distinct persons as specified in section 25, when made in the course or furtherance of business (section 25(4) of ST Act state the establishment of same person with distinct GST Registration Number will be treated as 'distinct person'.

(3) Supply of goods -

(a) By a principal to his agent where the agent undertakes to supply such goods on behalf of the principal or,

(b) By an agent to his principal where the agent undertakes to receive such goods on behalf of the principal.

(4) Import of services by a person from a related person or from any of his other establishment outside India, in the course or furtherance of business.

Payment of GST directly through ISD is required if the supply of services to own branch or division with distinct GSTIN w.e.f 1-4-2025

Cross charge means the charge of services supplied by HO to branches or branches to HO or another branch.

Payment of GST was not required upto 1-4-2025 if the supply of services to own branch or division with distinct GSTIN, or in case of import services, if full ITC available to branch

On the basis of clause 2 of schedule I to ST Act, e-supply of services by one branch/division to another will be subject to GST if there are distinct GST Registration Numbers.