The \u201cScope of Supply in GST\u201d is the heart of the Goods and Services Tax (GST) regime in India, defined under Section 7 of the CGST Act, 2017. It determines which transactions attract GST by broadly covering different forms of supply of goods or services\u2014sale, transfer, barter, exchange, licence, rental, lease, or disposal\u2014made for consideration in the course or furtherance of business.<\/p>\n
Even without consideration, certain transactions (listed in Schedule I) such as branch transfers, supplies between related\/distinct persons, and import of services from overseas related entities treated as supply.<\/p>\n
Schedule II clarifies whether a transaction is supply of goods or services (e.g., works contracts and leasing are services), while Schedule III excludes specific activities like employee services, sale of land, and completed buildings from the tax net.<\/p>\n
This inclusive yet precise definition ensures almost every business transaction falls within the GST ambit, enabling seamless input tax credit while preventing revenue leakage.<\/p>\n
In GST, the word \u201cSupply\u201d<\/strong> is the most important term because GST is chargeable only when there is a \u201csupply\u201d. It is the taxable event (just like \u201csale\u201d was the taxable event under old VAT or excise laws).<\/p>\n As per Section 7 of the CGST Act, 2017<\/strong>, a transaction will be called \u201csupply\u201d if it falls in any one of the following four situations:<\/p>\n\n
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