What is Taxable in GST ?
Every taxable supply of Goods or Services is eligible to GST. The levy is based on three key terms – supply, goods and services, which are explained as under.
Supply has not been defined in specific manner but is an inclusive definition. The term encompass three main types of supplies viz.,
- all supplies made in course or furtherance of business or commerce for consideration. Consideration received can be in the form of monetary payment or payment in kind (barter).
- importation of services whether for consideration or not and whether for business or for personal purpose.
- all supplies made without consideration as specified in Schedule I to the The proposed Central Goods And Services Tax Act, 2016 or proposed State Goods And Services Tax Act, 2016.
“goods’’ means every kind of movable property other than actionable claim and money but includes securities, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before supply or under the contract of supply. The Explanation to the defintion provides that the term ‘movable property’ shall not include any intangible property. Thus, goods shall be read to include all movable properties and shall include newspaper, securities, grass etc.
Also, while alcohol has been excluded from the purview of GST, it has been suggested that five petroleum products shall be subsumed later in GST regime.
“services’’ means anything other than goods. Traditional services include services of Engineer, chartered Accountants, architects etc. Electronically supplied services include services of software driven services or services of agreegator, online database management etc. More complicated types of Services which have been identified in recent times include refraining from doing something and the granting and surrendering of a right, intangibles, etc. Thus, services would include any service per se and anything which does not fall within the ambit of goods.