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order, postal/electronic remittance or any such similar instrument recognized by RBI.
              Ü Non-monetary consideration essentially means consideration in kind.



           02. Sec 7: Supply
         CCP 02.02.02.00
        "Exchange  is  a  form  of  supply  of  goods  or  services  or  both,  made  or  agreed  to  be  made  for  a

        consideration by a person in the course or furtherance of business". Explain it with help of example.
        [ICAI RTP Jun 2018]
        Answer:-
        Ü When two persons mutually transfer the ownership of one thing for the ownership of another, neither

           thing nor both things being money only, the transaction is called an exchange.
        Ü Exchange offers on products like televisions, mobile phones, refrigerators, etc. are leviable to GST.
        Ü Example:- Mr. X is a dealer of new cars. He sells new cars for   ₹ 8,25,000 & agrees to reduce  ₹ 1,25,000 on
           surrendering of old car. Mr. Y who intends to buy new car worth  8,25,000 agreed to exchange his old car  ₹
           with new car. Under GST law, it will be treated as Mr. Y has made supply of old car to dealer Mr. X and Mr. X

           has made supply of new car to Mr. Y. If Mr. Y is registered person, he will be liable to pay GST on  1,25,000.  ₹
           Whereas, Mr. X will be liable to pay GST on  8,25,000 irrespective of fact that whether Mr. Y is a registered  ₹
           person or not.



           03. Sec 7(1)(a): Supply for consideration in the course or furtherance of business
         CCP 02.03.03.00
        Meghraj & Co. wishes to commence the business of supplying ready-made garments within Punjab and

        in the neighbouring States of Delhi and Haryana. Kindly state as to what is the taxable event under GST
        and leviability of CGST, SGST/UTGST and IGST on the same? (Study Mat)
        Answer :-
        Ü Taxable event under GST is the supply of goods or services or both made for consideration in the course

           or furtherance of business.
        Ü CGST and SGST will be levied on intra-State supplies.
        Ü IGST will be levied on inter-State supplies.



         CCP 02.03.04.00
        Determine whether there is consideration in following cases & also state whether GST is chargeable:-
          i)  Reliance JIO offers free mobile handset on payment of security deposit worth ₹ 1500/- which is fully
              refundable.

          ii)   Isha, a customer purchases a gold necklace weighing 275 gms from PN Gadgil Jewel showroom. In
              exchange, she sells her old gold articles weighing 200 gms & pays differential amount in cash.
         iii)   RC cricket association Chennai, gifts a motor bike to Rahul as inducement to join their cricket club.

         iv)   XYZ ltd. is manufacturing fertilizers used for agriculture purpose. State govt. has given 30% subsidy on
              sale of such fertilizer.
          v)  ABC and Co., a trading concern, has supplied the product X to Mr. Y at subsidized rate of ₹ 30,000
              (Open market value of such goods is ₹ 45,000). The supplier of ABC and Co. has given the subsidy to it
              to compensate for the price difference.






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