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CCP 02.03.06.00

        Glory Ltd. is engaged in manufacturing and selling of cosmetic products. Seva Trust, a charitable
        organisation, approached Glory Ltd. to provide financial assistance for its charitable activities. Glory
        Ltd. donated a sum of ` 2 lakh to Seva Trust with a condition that Seva Trust will place a hoarding at the
        entrance of the trust premises displaying picture of products sold by Glory Ltd. Examine whether this
        activity would amount to "supply" under GST law? [CA Inter May 22 Exam]

        Answer:-
        Legal Provision:-
        Ü An activity qualifies as supply under GST only if it is for a consideration and is in course/furtherance of
           business.

        Ü Donations received by the charitable organizations are treated as consideration only when there's an
           obligation on part of the recipient of the donation to do anything.
        Discussion & Conclusion:-
        Ü Since in the given case, the display of products sold by the donor – Glory Ltd. - in charitable organization's
           premises  aims  at  advertising/promotion  of  its  business,  it  is  supply  for  consideration  in

           course/furtherance of business and thus, qualifies as supply under GST law.


           04. Sec 7(1)(aa): Supply by person other than individual to its members

         CCP 02.04.07.00
         A Resident Welfare Association provides the service of depositing the electricity bills of the residents in
        lieu of some nominal charges. Whether this activity is treated as supply under the GST Act?
        Answer:-
        Legal Provision:-

        Ü As per section 2(17) of CGST Act, 2017, Business includes provision of service by club or association or
            society to its members for a subscription or any other consideration.
        Ü As per Section 7(1)(aa) of the said act, supply includes activity/ transaction supplied by a  person other

            than an individual for its members for consideration. Explanation to this section states that such person
            and its members are deemed to be two separate persons & supply between them deemed to take place
            from one person to another.
        Discussion & Conclusion:-
        Ü In this case, Resident Welfare Association is a person other than an individual and it is providing service to

            its members by way of depositing the electricity bills of the residents in lieu of some nominal charges.
        Ü Hence, this transaction is treated as supply u/s 7(1)(aa).



           05. Sec 7(1)(c) read with Schedule I: Activities to be treated
           as supply even if made without consideration
         CCP 02.05.08.00
        Prithvi Associates is engaged in supply of taxable goods. It enquires from its tax advisor as to whether
        any  activity  can  be  treated  as  supply  even  if  made  without  consideration  in  accordance  with  the

        provisions of the GST law. You are required to enumerate such activities, if any (Study Mat)
        Answer :-
        Section 7(1)(a) of CGST Act stipulates that the supply of goods &/or services should be for a consideration

        and should be in the course or furtherance of business. But, Section 7(1)(c) states the Activities to be



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