by Supply:
The term “supply” is defined under Section 7 of the Central Goods and Services Tax (CGST) Act, 2017, and refers to the provision of goods or services or both, whether for a consideration or not, in the course of or furtherance of business. It includes importation of services or goods for a consideration, and also includes deemed supplies as specified in Schedule I of the CGST Act.
Aggregate Turnover:
Aggregate Turnover is the value of all taxable supplies, exempt supplies, export of goods or services, and inter-state supplies made by a registered person, both on his own account and on behalf of all his principals, but excludes taxes levied under CGST Act, SGST Act, and IGST Act, State cess and UTGST Act, and the value of inward supplies on which tax is payable by a person on reverse charge basis.
Person:
The term “person” has been defined under Section 2(84) of the CGST Act, 2017 and includes an individual, HUF, company, LLP, partnership firm, association of persons, or any other legal entity, but does not include any government body or agency.
Business:
Business refers to any trade, commerce, manufacture, profession, vocation, or any other similar activity, whether or not undertaken for a pecuniary benefit. It includes all activities related to the supply of goods or services, or both, incidental or ancillary to such activities.
Appropriate Government:
The term “appropriate government” has been defined under Section 2(6) of the CGST Act, 2017, and refers to the central government in case of inter-state supply of goods or services, or both, and state government in case of intra-state supply of goods or services, or both.
Mixed Supply:
Mixed supply refers to the supply of two or more goods or services or both, which are naturally bundled and supplied in conjunction with each other, and are not sold separately. It has been defined under Section 2(74) of the CGST Act, 2017.
Composite Supply:
Composite supply refers to the supply of goods or services, or both, which are naturally bundled and supplied in conjunction with each other, in the ordinary course of business, where one of the supplies is a principal supply, and the other supplies are ancillary to such principal supply. It has been defined under Section 2(30) of the CGST Act, 2017.
GSTN:
GSTN stands for Goods and Services Tax Network, which is a non-profit, non-governmental organization that provides the IT infrastructure and services for the implementation of GST in India. It provides the GST portal for taxpayers to register, file returns, pay taxes, and claim refunds.
GSTIN:
GSTIN stands for Goods and Services Tax Identification Number, which is a unique identification number assigned to every registered taxpayer under GST. It is a 15-digit alphanumeric number based on the PAN of the taxpayer and the state code.
E-commerce Input Tax Credit:
E-commerce Input Tax Credit refers to the input tax credit claimed by e-commerce operators for the tax paid by the suppliers on the goods or services supplied through their platform. It has been defined under Section 16(4) of the CGST Act, 2017, and is available only to e-commerce operators registered under GST.
Let’s take an example to understand these definitions in practical terms.
Suppose, ABC Pvt. Ltd., a registered taxpayer under GST, supplies goods worth Rs. 50,000 to XYZ Pvt. Ltd. in the state of Maharashtra. The GST rate applicable on such goods is 18%.
In this case:
- Supply: The supply of goods made by ABC Pvt. Ltd. to XYZ Pvt. Ltd. will be considered a supply under GST as it is a provision of goods for a consideration in the course of business.
- Aggregate Turnover: The aggregate turnover of ABC Pvt. Ltd. will include the value of this taxable supply, along with other taxable, exempt, and inter-state supplies made during the period under consideration.
- Person: ABC Pvt. Ltd. is a person as per the definition under GST.
- Business: ABC Pvt. Ltd. is engaged in the business of supplying goods and is registered under GST.
- Appropriate Government: In this case, the appropriate government will be the state government of Maharashtra as the supply is an intra-state supply.
- Mixed Supply: If ABC Pvt. Ltd. is also providing a free gift along with the supply of goods, then it will be considered a mixed supply as two or more goods are supplied in conjunction with each other.
- Composite Supply: If ABC Pvt. Ltd. is supplying goods along with installation services, and the installation services are ancillary to the principal supply of goods, then it will be considered a composite supply.
- GSTN: ABC Pvt. Ltd. will use the GSTN portal to register, file returns, pay taxes, and claim refunds under GST.
- GSTIN: ABC Pvt. Ltd. has a unique 15-digit GSTIN based on its PAN and state code.
- E-commerce Input Tax Credit: If ABC Pvt. Ltd. sells goods through an e-commerce operator like Amazon, then Amazon can claim input tax credit on the tax paid by ABC Pvt. Ltd. on such goods supplied through their platform.
