{"id":3869,"date":"2017-02-10T12:56:22","date_gmt":"2017-02-10T07:26:22","guid":{"rendered":"https:\/\/taxclick.org\/?p=3869"},"modified":"2017-02-10T13:00:03","modified_gmt":"2017-02-10T07:30:03","slug":"definition-outward-supply-gst","status":"publish","type":"post","link":"https:\/\/taxclick.org\/type\/gst\/definition-outward-supply-gst\/","title":{"rendered":"Definition of Outward Supply under GST"},"content":{"rendered":"

Section 2(73) Outward Supply<\/strong>: the new definition reads as follows:<\/span>
\n \u201cOutward Supply\u201d 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;\u201d<\/em><\/span><\/p>\n

The old definition reads as follows<\/span>
\n \u201coutward supply\u201d 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;\u201d<\/em><\/span><\/p>\n

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 \u201cany other means\u201d has been added thereby widening the scope of the definition.<\/span><\/p>\n

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.<\/span><\/p>\n

Section 2(29) of IGST Act: Zero rated supply: the new definition reads as follows:<\/span>
\n Zero rated supply shall have the meaning assigned to it under section 15.<\/span><\/p>\n

Interestingly the definition is given in the section 16 of the act which reads as follows:<\/span>
\n (1) \u201czero rated supply\u201d means any of the following taxable supply of goods and\/or services, namely –<\/span>
\n (a) export of goods and\/or services; or<\/span>
\n (b) supply of goods and\/or services to a SEZ developer or an SEZ unit.<\/span><\/p>\n

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.<\/span>
\n 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.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Section 2(73) Outward Supply: the new definition reads as follows: \u201cOutward Supply\u201d 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;\u201d … Read more<\/a><\/p>\n","protected":false},"author":17,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[15],"tags":[217],"yoast_head":"\nDefinition of Outward Supply under GST<\/title>\n<meta name=\"description\" content=\"\u201cOutward Supply\u201d in relation to a person, shall mean supply of goods or services, whether by sale, transfer, barter, exchange, licence, 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