Page 119 - GSTL_16th July 2020_Vol. 38_Part 3

2020 ] IN RE : SAWAI MANOHARLAL RATHI 357
(iv) Supplies that are not taxable under the Act (alcoholic liquor for hu-
man consumption and articles listed in Section 9(2) and in Schedule
III);
(v) Export of goods or services or both, including zero-rated supplies.
13. We further find that under GST, Supply is considered a taxable event
for charging tax. The liability to pay tax arises at the ‘time of supply of goods or ser-
vices’. Thus, determining whether or not a transaction falls under the meaning of
supply, is important to decide GST’s applicability.
13.1 Section 7 of the Central GST Act, 2017 defines the term “Supply” as
under :
7.(1) For the purposes of this Act, the expression “supply” includes -
(a) all forms of supply of goods or services or both such as sale,
transfer, barter, exchange, licence, rental, lease or disposal
made or agreed to be made for a consideration by a person in
the course or furtherance of business;
(b) import of services for a consideration whether or not in the
course or furtherance of business;
(c) the activities specified in Schedule-I, made or agreed to be
made without a consideration; and
(d) the activities to be treated as supply of goods or supply of ser-
vices as referred to in Schedule-II.
(2) Notwithstanding anything contained in sub-section (1), -
(a) activities or transactions specified in Schedule-III; or
(b) such activities or transactions undertaken by the Central Gov-
ernment, a State Government or any local authority in which
they are engaged as public authorities, as may be notified by
the Government on the recommendations of the Council, shall
be treated neither as a supply of goods nor a supply of ser-
vices.
(3) Subject to the provisions of sub-sections (1) and (2), the Government
may, on the recommendations of the Council, specify, by notification, the
transactions that are to be treated as -
(a) a supply of goods and not as a supply of services; or
(b) a supply of services and not as a supply of goods.
13.2 Thus, the Supply includes sale, transfer, exchange, barter, license,
rental, lease and disposal. If a person undertakes either of these transactions dur-
ing the course or furtherance of business for consideration, it will be covered un-
der the meaning of Supply under GST.
13.3 Supply has two important elements :
(a) Supply is done for a consideration;
(b) Supply is done in course of furtherance of business.
13.4 Notification No. 12/2017-Central Tax (Rate) and Notification No.
9/2017-Integrated Tax (Rate), both dated 28-6-2017, as amended, provides a list of
services exempted from payment of Central Tax on intra-State supply and Integrat-
ed Tax on Inter-State supply. Entry 27(a) of the Notification No. 12/2017 and Entry
GST LAW TIMES  16th July 2020  119