Monday, March 20, 2017

types of supply and recipient in gst


“Supplier” in relation to any goods and/or services shall mean the person supplying the said goods and/or services and shall include an agent acting as such on behalf of such supplier in relation to the goods and/or services supplied;

Recipient u/s 2(81)

“Recipient” of supply of goods and/or services means-
  • (a) where a consideration is payable for the supply of goods and/or services, the person who is liable to pay that consideration,
  • (b) where no consideration is payable for the supply of goods, the person to whom the goods are delivered or made available, or to whom possession or use of the goods is given or made available, and
  • (c) where no consideration is payable for the supply of a service, the person to whom the service is rendered, and any reference to a person to whom a supply is made shall be construed as a reference to the recipient of the supply;



Explanation.- The expression “recipient” shall also include an agent acting as such on behalf of the recipient in relation to the goods and/or services supplied.

Composite Supply u/s 2(27)

“Composite supply” means a supply made by a taxable person to a recipient comprising two or more supplies of goods or services, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply;

Illustration : Where goods are packed and transported with insurance, the supply of goods, packing materials, transport and insurance is a composite supply and supply of goods is the principal supply.

Principal Supply u/s 2(78)

“Principal supply” means the supply of goods or services which constitutes the predominant element of a composite supply and to which any other supply forming part of that composite supply is ancillary and does not constitute, for the recipient an aim in itself, but a means for better enjoyment of the principal supply;

Mixed Supply u/s 2(66)

“Mixed supply” means two or more individual supplies of goods or services, or any combination thereof, made in conjunction with each other by a taxable person for a single price where such supply does not constitute a composite supply;

Illustration: A supply of a package consisting of canned foods, sweets, chocolates, cakes, dry fruits, aerated drink and fruit juices when supplied for a single price is a mixed supply. Each of these items can be supplied separately and is not dependent on any other. It shall not be a mixed supply if these items are supplied separately.

Others

  • Taxable Person - u/s 2(98) – “taxable person” shall have the meaning as assigned to it in section 10
  • Taxable Supply - u/s 2(99) - means a supply of goods or services which is not chargeable to tax under the Act
  • Non-taxable supply – u/s 2(100) – means a supply of goods or services which is not chargeable to tax under this Act
  • Taxable Territory – u/s 2(101) – means the territory to which the provision of this Act apply.


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