Various types of Supplies under GST

Updated on July 08, 2024 10:41:34 AM

Supply refers to the transaction which is made for consideration, made for furtherance of the business, or in the course of the business and it should be taxable. There are various types of supplies under GST depending upon the various factors. Different types of supplies under gst are State Goods and Services Tax (SGST), Integrated Goods and Services Tax (IGST), Union Territory Goods and Services Tax (UTGST) and Central Goods and Services Tax (CGST) Deemed supply, Mixed supply, Composition supplies, Taxable supplies etc.

On Different types of the supplies different types of the compliance are applicable and they attract different procedures as well as GST Refunds all of which may get complicated. Professional Utilities helps in all matters related to GST Registration.

Supply is defined as goods and services which are supplied for consideration in any form such as barter, sale, licence, exchange or disposal agreed to be made or made furtherance of business or for consideration.

There are four types of the GST as mentioned below -

• State Goods and Services Tax (SGST)
• Integrated Goods and Services Tax (IGST)
• Union Territory Goods and Services Tax (UTGST)
• Central Goods and Services Tax (CGST)

• State Goods and Services Tax (SGST) - Under this GST is applied to transactions that are intrastate (same State) where central GST and state GST both are levied. Respective state can claim the revenue earned through SGST.
• IGST or Integrated Goods and Services Tax - Under this GST is applicable on the import and export as well as interstate. Central government is responsible for collecting taxes.
• CGST or Central Goods and Services Tax -Under this GST is levied as per intrastate (within the same state). The Central Government is responsible for usage of the revenue from CGST.
• UTGST or Union Territory Goods and Services Tax -Under this GST is applicable on the goods and services supplied in the union territory. This tax is applicable in Chandigarh, Daman Diu, Dadra, Nicobar Islands and Nagar Haveli, and Lakshadweep. The Union government is responsible for usage of the revenue from GST.

There are various other types of supplies under GST as mentioned below -

• Deemed supply under GST - deemed supply is a type of supplies under gst in which there is inadequate or no consideration for the supply of goods and services received. This type of supply under GST is also known as barter supplies.
• Mixed supplies under GST- Mixed supplies is one of the various types of supplies under GST in which two or more taxable supplies in combination are supplied. One of the supplies with the highest rate of tax applies to the whole mixed supply. For example, a rakhi gift package consisting of sweets, chocolate, and dry fruit will have a GST rate of dry fruits applied to it.
• Composition supplies under GST - Among various types of supplies under GST one supply is composition supplies when a taxable person makes a supply consisting of two or more taxable supplies of goods and services or both or a combination of both. Either they are in conjunction with each other supplied in the business or bundled naturally. The rate of GST is applicable in the composite supply of the principal supply.
• Taxable supplies - Under GST goods and services are supplied which are taxable. A refund can be claimed by a Registered taxpayer of the taxes paid.
  • Nil rates supply- When 0% GST is applicable on the supply of the goods.
  • Regular taxable supplies - When goods and services are taxed at the normal rate.
  • Zero Rated - Supplies that are deemed export or made to the SEZ unit. These types of supplies under GST attract a rate of GST more than 0%.
• Non - Taxable Supplies
  • Non - GST Supplies - these are those types of supplies under GST that are outside the preview of the GST Law.
  • Exempted Supplies- These are those types of supplies under GST that do not attract GST but are within the preview of the GST Law. By making such supplies the input tax credit can not be claimed by the registered taxpayer.

There are types of supplies under gst which are determined by the place of supply and location of the supplier. It is important to determine whether the supply is interstate or intra - state as mentioned below -

• Inter-state- This type of supply under GST means where the place of supplies and the location of the supply are placed in the different union territories or different states.
• Intra-State- This type of supply under GST means where the place of the supplies and the location of the supply is in the same state. Export, Import, and SEZ supplies to and from are also known as interstate supplies.

Three attributes of the types of supplies under GST are -

• Value of the supply - Deciding the value of the supply that is taxable and the Tax amount which is required to be paid.
• Place of supply - This helps in determining whether it is an inter-state supply or intra-state supply that decides which GST is applicable.
• Time of supply - With the help of this component, GST Return and taxes associated which are due are determined.

Under the GST Act, the scope of the supplies are

• Supply as basis as Consideration
• Supply should be adherence by the taxable person
• Supply is considered a means of furtherance of business entrepreneurs.
• Supplies are made within the feasible boundaries and are taxable.

With the LUT in gst, goods and services can be exported by the exporter without payment of the taxes. Otherwise the exporter has to pay taxes and get a refund by filing zero rated exports. There are many benefits of the LUT in GST as mentioned below -

• It is valid for one year as a burden of the dealer. He does not have to apply for the documentation for every consignment.
• LUT in GST helps in exemption from the taxpaying. Capital get stuck for criteria time if payment is made initially and refunded later. That capital can be used for other requirement.

LUT in GST needs to be accepted within three days along with self declaration. Failure to accept the LUT within a specific time is considered to be accepted.

Supply is defined when goods and services are made available or provided in the course of business or trade in course of business in return of the consideration to be received or received. There are various types of the supplies under different kinds of factors. It is important to understand the different types of supplies under gst to meet the compliance requirement and protect from any penalties.