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If gift of `42,000 is given instead of ` 3,00,000 , the same will not qualify as supply goods between distinct persons as specified in section 25 made in the course or
since it has been specifically mentioned in proviso of para 2 of schedule I that gifts furtherance of business is to treated as supply even if made without consideration.
not exceeding ` 50,000 in value in a financial year by an employer to an employee Explanation:- With reference to the above provision, Yes, transfer of stock made by CH 2
shall not be treated as supply of goods or services or both. Modest Ltd. are taxable under GST. Though the definition of supply It does not

specify that supply is to be made by one person to the another. Hence, self-supplies
CCP 02.12.29.00 are to be treated as supply in terms of section 7 of CGST Act.

Rishabh Enterprises, a registered supplier, owns an air- conditioned restaurant Further, as per the above provision pertaining to distinct person, Inter-state self-
in Virar, Maharashtra. It has opened a liquor shop in Raipur, Uttarakhand for supplies such as stock transfers, branch transfers or consignment sales shall be
trading of alcoholic liquor for human consumption. State whether Supply by taxable under IGST even though such transactions may not involve payment of
Maharashtra restaurant to Uttarakhand shop, in course or furtherance of consideration. Every supplier is liable to register under the GST law in the State or Charge of Tax & Concept of Supply

business without consideration will qualify as supply or not. [ICAI Material] Union territory from where he makes a taxable supply of goods or services or both in
Answer- Since supply of alcoholic liquor for human consumption in Uttarakhand is a terms of Section 22 of the CGST Act . However, intra-state self- supplies are not
non-taxable supply, Rishabh Enterprises is not required to obtain registration with taxable provided that separate registration has not been obtained.
respect to the same in Uttarakhand.
In this case, air-conditioned restaurant in Maharashtra and liquor shop [though CCP 02.12.31.00
unregistered] in Uttarakhand shall be treated as establishments of distinct persons. Mr. Raj has head office in pune and has branches in state of Gujarat, Goa, and
Supply by Maharashtra restaurant to Uttarakhand shop, in course or furtherance of Punjab. Mr. Raj send goods to its branch Goa worth ` 2,00,000 in its own
business even without consideration will qualify as supply. conveyance. Value of conveyance ` 15,00,000 and With the conveyance some

tools and spares parts are also send worth ` 50,000. Calculate total value of
CCP 02.12.30.00 taxable supply on which GST is payable.
Modest Ltd., registered in Delhi dealing in supply of electronic items transferred Answer:- Transfer of goods to the own branch is treated as supply. As per section

some of its stock to its another unit located in Haryana (inter-state transfer). 25(4) both head office and branch is treated as demand distinct person. Therefore
Whether such self-supplies are taxable under GST? supply of goods is liable to GST. VALUE OF TAXABLE SUPPLY IS ` 2,00,000.
Answer: Legal Provision:- As per sec 7 of CGST Act,2017 the term 'Supply' has been As per the Circular no. 1/1/2017, carrying goods or passenger or both in conveyance
defined in an inclusive manner. between deemed distinct person shall be treated neither as supply of goods nor
As per section 25(5) of CGST act, provides that where a person who has obtained or supply of services and no IGST to be levied. Therefore supply of conveyance carrying
is required to obtain registration in a State or Union territory in respect of an goods is not treated as supply.
establishment, has an establishment in another State or Union territory, then such As per the Circular no. 21/21/2017, on inter- state movement of rigs, tools and spares

establishments shall be treated as establishments of distinct persons. and all goods on wheels in conveyance between deemed distinct person shall be
As per clause (2) of Schedule I of CGST Act, 2017 inter alia provides that supply of treated neither as supply of goods nor supply of services and no IGST to be levied.
Therefore supply of tools and spare part is not treated as supply.

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