Page 5 - Ch2_Supply

4) Recipient:

Ü As per section 2(93) of CGST Act, “Recipient” of supply of goods &/or services means:-
a) where a consideration is payable for supply of goods &/or services,
Ø the person who is liable to pay that consideration,
b) where no consideration is payable for the supply of goods,

Ø the person to whom the goods are delivered or made available, or
Ø to whom possession or use of the goods is given or made available, and
c) where no consideration is payable for the supply of a service,
Ø the person to whom the service is rendered, and

Ü any reference to a person to whom a supply is made shall be construed as a reference to the recipient
of the supply and
Ü shall include an agent acting as such on behalf of the recipient in relation to the goods or services or
both supplied.

5) Deemed Distinct Person:
Ü As per section 25(4) of CGST Act, If more than one registration is obtained or is required to be
obtained by a person in one or more State or Union territory, then for each of such registration, he
shall be treated as distinct persons.
Ü As per section 25(5) of CGST Act, If registration is obtained or is required to be obtained by a person

for one establishment in a State or Union territory & has an establishment in another State or
Union territory, then such establishments shall be treated as establishments of distinct persons.
6) Inter State Supply & Intra state supply:
Ü If the location of supplier and the place of supply are in the same State/ Union territory, it shall be

treated as an 'Intra State supply'.
Ü If the location of supplier and the place of supply are in:-
Ø two different States or
Ø two different Union territories or
Ø a State & a Union Territory

it shall be treated as an 'Inter State supply'.
Import or export of goods &/or services are also treated as interstate supply
7) Consideration:

Ü As per the definition of 'consideration' provided under the CGST Act, "Consideration" in relation to
supply of goods &/or services includes:-
a) Any payment in money or otherwise, in respect of, in response to, or for the inducement of, the
supply of goods &/or services.

b) The monetary value of any act or forbearance, in respect of, in response to, or for the inducement
of, the supply of goods or services or both,
Ü It excludes:-
a) Any subsidy given by the Central Government or a State Government.

b) Deposit given for the supply shall not be considered as payment made unless the supplier applies
it as consideration for the said supply.
Ü The consideration can be provided by the recipient or by any other person
Ü The term money under GST law not only includes cash (Indian as well as foreign currency) but also

cheque, promissory note, bill of exchange, letter of credit, draft, pay order, traveller's cheque, money

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