Page 142 - GSTL_30th April 2020_Vol 35_Part 5

628 GST LAW TIMES [ Vol. 35
(i) The transaction must involve a supply of goods or
services or both, such as sale, transfer, barter,
exchange, licence, rental, lease or disposal made or
agreed to be made.
(ii) The transaction must be for a consideration by a per-
son
(iii) The transaction must be in the course or furthrence of
business
In the instant case, the first condition is undoubtedly satisfied as
the applicant is involved in of the aforesaid service. The second con-
dition being receipt of consideration. In this regard we refer Section
15 of the CGST Act, 2017 which deals with the value of supply i.e.
consideration
Section 15(1) of the said Act read as under :
“The value of a supply of goods or services or both shall be the
transaction value, which is the price actually paid or payable for the
said supply of goods or services or both where the supplier and the re-
cipient of the supply are not related and the price is the sole considera-
tion for the supply.”
It could be inferred from the above that for the transaction to
qualify as a supply, a supplier and recipient are required, whether
real or deemed. In the instant case the applicant as well as the recipi-
ent are both different part of the Government of Karnataka, which is
a single entity. Therefore in the absence of distint supplier and recip-
ient, the instant transaction does not qualify to be a supply in terms
of Section 7(1)(a) of the CGST Act, 2017.
Further, the third condition is not required to be discussed as
the second condition is not satisfied.
However, if the activity of printing and supply is done to the
Departments of same Government of Karnataka who have obtained
separate registration under the GST Act, then the said activity
amounts to supply in terms of Section 7(1)(a) of the CGST Act, 2017
and exigible to tax.
The applicant claims exemption for the above said activity un-
der Entry No. 8 of the Notification No. 12/2017-Central Tax (Rate),
dated 28-6-2017. This entry exempts only the services provided by
the State Government to another State Government and hence the
said entry is not relevant to the instant issue.
(b) Supply of Goods to Various Departments of Government of Karna-
taka :
This category covers the question Number 11. In all these ques-
tions the applicant is engaged in supply of printed material i.e. an-
swer sheets/visiting cards/letter heads/forms/covers/file wrap-
pers/invitation cards/scribbling pads/rubber stamps; content is
provided by any of the Department of Government of Karnataka;
physical inputs including paper belong to the applicant.

GST LAW TIMES  30th April 2020  142