Definition of GST- Good and Service Tax
Definition of GST -Goods and Service Tax – as defined in Article 366 (12A) of Constitution of India to mean “any tax on supply of goods or services or both except taxes on supply of the alcoholic liquor for human consumption‟.
Definition of Goods under GST
In terms of Section 2 (49) of the CGST Act ( as per Revised Model GST Law)
“Goods” means every kind of movable property other than money and securities but includes actionable claims, growing crops , grass and other things attached to or forming part of land which are agreed to be severed before supply or under a contract of supply.
Definition of Services under GST
(92) “services’’ means anything other than goods;
Explanation 1.- Services include transactions in money but does not include money and securities;
Explanation 2.- Services does not include transaction in money other than an activity relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged.
Thus, all supply of goods or services or both would attract CGST (to be levied by Centre) and SGST (to be levied by State) unless kept out of purview of GST.
There is no requirement of actual sale of goods under GST. The alternative methods of supply of goods could be in the form of:
sale of goods,
captive consumption in another location,
supply done on consignment basis or any other basis by the Principal to his Agent
supply on job work basis, ( if working under returnable basis- no tax need be paid)
any other supply such as donation, sample etc.
Structure of GST
India is proposing to implement dual GST‘. In dual GST regime, all the transactions of goods and services made for a consideration would attract two levies i.e. CGST (Central GST) and SGST (State GST).