GST (Goods and Service Tax) in India is regarded as one of the largest taxations that has taken place in India and also passed by the Indian Government. India has adopted two GST which means GST will be administrated both by the State Government as well as by the Central Government.
In keeping the federal structure of India, it is proposed that the GST will be issued both by the Central Government (CGST) and the State Government (SGST). Prime Minister Narendra Modi introduced GST in India on the midnight of 1st July 2017.The development of GST took many negotiations as well as revisions before getting launched in India in its final form in the year 2017.
Taxable event is of utmost crucial as well as important affair in all tax law. In the previous taxation system in India there were different kinds of indirect taxes like sales, purchase, removal of services, goods, entertainment etc. taxes were present. After the implementation of GST in India a complete transformation occurs in the taxation system as well as in the indirect taxes as well. According to the Article 366(1A) of the Indian Constitution Goods and Services Tax defines a tax on the supply of goods or servicers but not on the supply of alcoholic liquor for the consumption of human. In Taxable event the amounts to be charged is fixed.
Meaning of supply:
The meaning of supply are as follows:
Supply consists of:
- Different types of supply of goods and services like sale, barter, exchange, transfer, lease, license, rental etc. agreed to be made for a consideration by a person in the promotion of their business.
- The bringing of goods and services from a country to its own country for a consideration whether or not whether in the commencement of one’s business.
- Without any consideration made or agreed for a supply indicated in Schedule I.
Inclusive term of supply:
The supply consists of all types of supply of goods and services like transfer, sale, exchange, license, lease, or disposal agreed to be made for consideration by a person in the commencement of one’s business.
Under the schedule II of the GST Law Model few matters have been individually described to be treated as a supply of goods and definite to be a supply of services. This has been done taking into consideration before taking any legal action on the matter of double taxation such as in untouchable goods, transfer of right to use goods, work contracts in AC restaurants, and so on.