Section 2(73) Outward Supply: the new definition reads as follows:
“Outward Supply” in relation to a person, shall mean supply of goods or services, whether by sale, transfer, barter, exchange, licence, rental, lease or disposal or any other means made or agreed to be made by such person in the course or furtherance of business;”
The old definition reads as follows
“outward supply” in relation to a person, shall mean supply of goods and/or services, whether by sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made by such person in the course or furtherance of business except in case of such supplies where the tax is payable on reverse charge basis;”
The amendment bought in this definition is that earlier outward supply was restricted to transactions like sale, transfer, barter, exchange, licence, rental, lease or disposal, whereas in the new definition “any other means” has been added thereby widening the scope of the definition.
Apart from that the transactions entered on which reverse charge was applicable were excluded from the definition. As a result, the biggest impact would have been on the persons opting for composition levy and the cenvat availment. Composition levy is not allowed to person engaged in inter-state outward supplies. Thus where any supply is under reverse charge mechanism then under the old draft, it would have been interpreted as composition levy will be allowed to such persons also. After the amendment such an inference is not allowed. Further, as reverse charge is kept out of definition of “output supply”, the credit will not be allowed to be used for payment of GST on such RCM. This is with line with existing cenvat credit provisions wherein also RCM is to be paid in cash only.
Section 2(29) of IGST Act: Zero rated supply: the new definition reads as follows:
Zero rated supply shall have the meaning assigned to it under section 15.
Interestingly the definition is given in the section 16 of the act which reads as follows:
(1) “zero rated supply” means any of the following taxable supply of goods and/or services, namely –
(a) export of goods and/or services; or
(b) supply of goods and/or services to a SEZ developer or an SEZ unit.
The amendment bought in the definition is that earlier the supply of goods/services to SEZ was not included in the definition resulting in taxability of such supplies. After the amendment supplies to SEZ or SEZ developer will also be termed as zero rated supply and no tax will have to be paid on such supplies as well as credit will be available against such supplies without any restriction.
Although it is subject to debate that why EOU has not been included in the definition of “Zero Rated supply”. This will result in supplies made to EOU will be subject to tax. This will alter the complete situation for EOUs. It will considerable to look out for inclusion or exclusion of EOU in the final draft of law.
sir i hope u give me my ans about gst i carry on business i supply of goods to dealers my goods rate and transportation rate included after i bill raised to party with goods and service rate i mentioned cgst and sgst full value of good but i am not cleat whose payable on gst on service value.
Dear Sir,
This is Arunkumar from Suba solutions pvt ltd, we are dealers are packaging machineries imported from china. we have one clarification with regard to Supply of Services –
whether Rule 14/2014 of Service tax rules still continues in GST.
in the above, we have to pay service tax for our commission receipts. whether we are liable to pay GST , under GST law for receipt of commission, please quote with rule or section for our easy understanding and discussing with our principals.
Sir, I have an IT business where I supplies spare parts and repair laptops desktops so how can I fill up the GST returns pages, is there any guide line to fill up the required fields.
Sir, I came under OIDAR services. So is this compulsory to fill gstr3b.