- Types of Supply
- 1. Based on location
- Intra-State supply
- Exceptions –
- Territorial waters
- Inter-State supply
- 2. Based on combination
- Composite Supply
- Mixed Supply
- Continuous Supply
- 3. Based on Recipient
- Inward Supply
- Outward Supply
- 4. Based on Tax treatment
- Exempt Supply
- Zero-Rated Supply
- Non-Taxable Supply
- Taxable Supply
In this article, meaning of the term ‘Supply’ and the various types of supply are discussed for the information of the readers.
Supply of goods or services or both is defined as sale, transfer, barter, exchange, license, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business.
Types of Supply
Intra-State is a type of supply of goods or services where the location of the supplier and the place of supply of goods are in the same State or same Union Territory.
- Supply of goods to or by a Special Economic Zone developer or a SEZ unit; or
- Goods imported into the territory of India; or
- Supplies made to a tourist (section 15)
- Where the location of the supplier is in the territorial waters; or
- Where the place of supply is in the territorial waters;
The place of supply will be in the nearest Coastal State or Union Territory.
It is a supply of goods or services, where the location of the supplier and place of supply are in-
- Two different States;
- Two different Union territories; or
- A State and a Union territory
It also includes import of goods or services into the territory of India.
Further, the following shall be treated as an inter-state supply of goods or services:
- When the supplier is located in India and the place of supply is outside India;
- To or by a Special Economic Zone (SEZ) developer or a SEZ unit; or
- In the taxable territory, not being an intra-state supply and not covered elsewhere.
It means a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply.
It means two or more individual supplies of goods or services, made in conjunction with each other by a taxable person for a single price where such supply does not constitute a composite supply.
Continuous supply is of two types viz., continuous supply of goods and continuous supply of services.
It means receipt of goods or services or both whether by purchase, acquisition or any other means with or without consideration.
It means a supply of goods or services or both, whether by sale, transfer, barter, exchange, license, rental, lease or disposal or any other mode, made or agreed to be made by such person in the course or furtherance of business.
Exempt Supply of any goods or services is one which attracts nil rate of tax or which may be wholly exempt from tax. It includes non-taxable supply. In the case of exempt supply in respect of any goods and/or services, the taxable person shall not be required to pay tax.
It means export or supply of goods or services to a Special Economic Zone developer or a Special Economic Zone unit.
Non-taxable supply is the sale of any good or service which attracts nil rate of tax and is similar to exempt supply.
Supply on which tax shall be paid under GST.
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