Point of Taxation under earlier laws i.e Service Tax, VAT, Excise fell at different events. Goods and Services Tax which is aiming at unifying taxation system in India will Introduce the concept of Supply.The Point of taxation under Goods and Services Tax act is the time of Supply of Goods or Services.
- All forms of supply of goods and/or services 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.
- Importation of services for a consideration whether or not in the course of furtherance of business, and
- A supply specified in Schedule I, made or agreed to be made without consideration.
What is to be treated as supply ?
Schedule II prescribes activities which are to be treated as supply of goods and services. The following activities are to be treated as supply of goods and services:
- Transfer of
- Title in goods is a supply of goods.
- Right in goods without transfer of title in goods is a supply of services.
- Title in goods in a future date on payment of full consideration is a supply of goods.
- Any lease, tenancy, easement, licence to occupy land is a supply of services
- Any lease or letting out of the building including a commercial, industrial or
residential complex for business or commerce, either wholly or partly, is a supply of
- Any treatment or process which is being applied to another person’s goods is a
supply of services.
- Transfer or Disposal of business assets
- The following shall be treated as “supply of service”
- renting of immovable property;
- construction of a complex, building, civil structure or a part thereof, including a
complex or building intended for sale to a buyer, wholly or partly, except where the entire consideration has been received after issuance of completion certificate, where required, by the competent authority or before its first occupation, whichever is earlier.
- The following shall be treated as supply of goods
- supply of goods by any unincorporated association or body of persons to a member thereof for cash, deferred payment or other valuable consideration.