So, please try to understand what I am going to tell you.
Section 7
Section 7 discusses about the definition of supply and not
only supply not only its definition also it tells some
other schedules and other things like that what is the part
of supply and what is not
Let's try to understand
I will explain everything Section 7 subsection 1
So, what are we studying? We are studying GST. When does
GST apply? When there is supply.
When there is supply of goods, supply of services, then the
liability of GST will come.
But what is this supply? Are the goods that I am providing,
the services that I am providing, are they being covered in
the definition of supply?
If I am selling goods, this is one example that I am
selling goods, I am a businessman.
But there is another example that I am doing charity.
In charity also I can supply something.
A person came to me to beg, I gave him some clothes, I gave
him something as donation.
So, is donation also a supply of goods? Should my GST be
applied on top of that donation?
You will say that this is a supply of goods.
The clothes that you are giving to the beggar, you are
supplying it.
Don't hold on to the word, hold on to the definition.
Everything has a definition.
Charity, is it being covered in this or not?
Let's see what he is trying to say.
Supply includes all the forms of supply of goods or service
or both, like sale.
If you do a sale, like I sell my classes, will that supply
of goods or services be made?
Sale, will it be covered here? Yes, it will be covered.
So, should GST be applied on top of that? Yes.
It is a simple point.
Whatever is there in this chapter, you just have to see
whether this is a supply or not.
Is it being covered in the definition of supply or not?
If it is covered in the definition of supply, then GST will
be applied on top of it.
This is a simple point.
Is it a supply or not?
For this supply, what do we have to see?
We have to see section 7.
If we have information about section 7, then we will easily
tell that this is a supply and GST should be applied on top
of it.
Let's move on to the definition.
If there is a sale or transfer.
If you have transferred an asset or vehicle.
If there is a barter.
Do you remember the barter system?
In the olden days, there was a barter system.
That you give me 10 kg wheat and take 15 kg rice in return.
If there is such a system.
If someone says, take this particular goods.
Supply me 100 coats and take 150 shirts in return.
If there is such a transaction.
Supply me 100 coats and take 150 shirts in return.
Should this transaction also be considered as a supply of
goods and services or not?
What will be your answer?
What answer will you give me?
I am asking you.
I have given you a case.
A person comes to me and says, give me 100 coats and take
150 shirts in return.
Will this transaction be considered as a supply of goods
and services or not?
First of all, why am I asking you this question?
I am asking because if I come to know that there is a
supply of goods and services.
Then obviously, GST will be imposed on it.
Now, you ask me whether there is a supply or not.
Where will I take you?
On section 7 definition.
What does this definition say?
Supply includes all forms of supply of goods and services.
Including barter.
This is barter.
This is an exchange.
Barter is an exchange.
This will be covered in the definition of supply.
And as soon as it is covered in the definition of supply,
GST will be imposed on it.
You have given a license for something.
You have given a license.
For example, there are coal mines.
There are gold mines in our country and in other places as
well.
They give you a license.
Did they give you a license?
Okay, for the next 2-3 years, we will give you this license.
Or for example,
There is an example that will go in your mind very clearly.
Sir, an example of a contract.
You have to open a liquor contract.
For that, you have to get a license from the government.
The person who is supplying you a license.
What is he giving?
Goods or services?
Is he giving any of the two?
Goods and services?
Is he giving you a license?
Now the question is, should GST be imposed on this too or
not?
If any person asks you,
Will GST be imposed on me or not?
You simply ask him,
Does it cover in the definition of supply of goods and
services?
Open the definition.
Come to the definition, section 7.
What does the definition say?
There is a license too.
All forms of supply of goods or services.
Like a license.
So the word license has also come here.
So if you take a license from someone.
Or you supply a license to a person.
You provide a license for something.
Do mining here.
I am giving a license for mining.
Open a liquor contract.
I am giving a license for that.
So will GST be imposed on that thing?
Yes.
Why will it be imposed?
Because that too has been covered in the definition of
supply.
Rental.
Property on rent.
Commercial property on rent.
Office on rent.
Office building on rent.
Showroom of cars on rent.
The owner of the property comes to you.
He says,
I have heard that you have taken GST class from Mr. Gupta.
He says, Yes, I have.
I have heard that you teach very well.
He says, Yes, I teach very well.
Say this when you go ahead.
If you teach well, then tell me.
That I have a commercial property on rent.
I do billing of one lakh rupees per month.
Should I charge GST on that too?
Should GST be imposed on that too?
What is the question?
GST should be imposed.
As soon as anyone asks you this question.
Your mind should click.
On section 7.
What does section 7 say?
If you are covered in the definition of supply.
If there is supply, then it is obvious.
You will be covered in GST too.
You have to see if it is being covered in the definition of
supply.
Is the rental word coming here?
If the rental word is coming, then it will be covered in
the definition of supply.
And on top of this, our GST will be applied.
This is the point, friends.
Lease is done.
Disposal is made.
Let's move ahead.
Are the points clear?
Look, friends, I am putting so much energy, time and effort.
It is obvious, friends.
In return, I expect only one thing from you.
Listen to my talks carefully.
Because this is the definition.
This is a lockdown section.
Which will answer all your questions.
Which are going to be asked to you in the context of
marriage and child.
You have taken the GST class.
You have the knowledge of GST.
You will go to any wedding.
You will go to a public gathering, social gathering.
Four relatives will stand with you and ask.
Son, I have started this new business.
I have started a new business.
And someone has told me that you have taken the GST class
from Mr. Gupta.
Listen, there is a master who teaches GST.
Tell me, will my GST be applicable in this business?
As soon as someone asks you this question, you should know
the answer immediately.
You should know that I will tell him about section 7 supply.
What all is covered in the supply?
I will ask him that how do you sell? are you providing a
license? Do you have a rental? Do you have any of these
things? If he falls somewhere, he will come somewhere, he
must be selling something, he must be taking a rental of
something.
If there is something like this, then you can directly say
that uncle, GST will be applicable on you.
He will salute you that what is your knowledge, sir?
Sir, that's why if you say somewhere that to get praised,
to get your public praised, a little struggle, a little
hard work, a little blood and a little sweat is necessary.
If you do a little hard work now, you will get so much
praise in the future, it will be fun, sir.
People of knowledge will make you see that this person
came, ask us questions from your heart, sir.
What to say about your fan following? What are you talking
about, sir? You are selling dreams.
Come on, I will take this definition forward.
Made or agreed to be made for our consideration.
It doesn't work without money, sir.
This is a sinful stomach.
Nothing works without money.
You are doing sales, you are doing rental, you are doing
anything, but there is no money.
So, sir, if there is no money, then it will not be covered
in the definition of supply.
Because the definition of supply says that you are doing
supply, you are taking some sale, rental, license, but you
are doing consideration for money.
You are doing all the work for money.
You are Akshay Kumar, you do everything for money.
As soon as the script comes to you, you sign it.
You don't care if the movie runs or not.
Sorry for the Akshay Kumar fans.
Sorry, but this is the truth.
You are doing sales, license, rental, whatever, but what
are you doing for? For money.
You are not doing all these things for charity.
You are doing it for consideration.
You are doing it for money.
You are doing it for goods.
Say whatever you want to say.
You are doing it for publishing.
In the course or furtherance of business.
You are doing it from the business point of view.
You are doing it to earn money.
And what are you doing? You are doing sale, you are giving
license, you are doing rental, you are doing disposal of
assets, you are giving lease to assets.
So, what will happen to all that? It will be considered in
supply.
And as soon as it will be supplied, the first thing, as
soon as it will be covered in the definition of supply, GST
will be applied on it.
What did we read? We read that if someone asks you that GST
is applied or not applied on you, you simply open section 7
and show it.
And what will you show by opening it? You don't show it by
opening section.
These are your mind talks.
You will keep telling every person that how we are reading,
from where we are seeing and telling things.
He will do the work himself.
Then why will he ask a consultant like you? These things
are not to be told that from where I am seeing and coming.
You simply do the acting.
He will ask you that will GST be applied? You will think,
okay, yes, okay.
No, it will not be applied on you.
Say like this.
If it is more, then yes, according to section 7, this
supply will not be accepted on you and that is why
GST will not be applied on you.
What is the condition of supply? Revise once.
To be covered
in definition, whether it is sale, barter, exchange,
license, rental, taking money on lease, assets on lease,
money is coming to you.
Are things coming for free? Are you selling for free? Is
barter happening for free? No, sir.
It is being done for consideration.
It is being done for money.
Either money comes, either in cash or in kind.
Either money comes,
if money is not coming, then some other asset comes in its
place.
Like I gave an example of a coat, that you are supplying
100 coats, in return you are getting 150 shirts.
Is this a supply? Yes, it is a supply.
Sir, what is the consideration? Why is it a supply? See
first, why is it a supply? Because sale is happening,
barter is happening, exchange is
happening. Is barter exchange happening? Yes, it is
happening. This is the first condition.
What is the second condition? Is there consideration in
this? Brother, consideration can be either in cash or
consideration can be in kind.
If I would have supplied 100 coats, I would have taken
money.
If I am not taking money, then in return I am taking 150
shirts.
So that is also a consideration.
That is also a consideration.
Okay, two conditions have been satisfied.
Now, what is the third and most important condition? Are
these things happening for business purpose? Are all these
things being done for business purpose? If yes, then this
is supply of goods and services, my dear, according to
section 7.
And our GST will be applied on this.
What will you do? You will take it to section 7 towards
supply.
Towards the definition of supply.
Director sir, move it up a little.
Towards the definition of supply.
The definition
of supply is that either there is sale, exchange, rental,
etc., plus for consideration.
Consideration means either cash or kind.
And third, for business purpose.
If all these three things are satisfied, if all these three
conditions are satisfied, then this will be considered as
supply.
And as soon as it is supplied, GST will be applied on it.
If you want to click a photo of this, click it.
If you want to take a screenshot, take it.
If you want to write a letter, write it.
If life was so easy, how much fun would it be? What are you
saying sir? Instead of opening GST classes, instead of
running GST classes, are you running philosophy
classes? No, friend.
I just had a thought in my mind that if life was so easy,
if the definition of supply was so easy, if it was told
that GST is applied on you or not, if it was so easy, then
how much fun would it be in life? How peaceful would this
life be?
What were those days when GST was not there? Some people
must be thinking like this.
Sir, what are you saying? Why are you saying? What do you
mean by this? We don't understand anything, sir.
Just explain briefly.
What do you want to say? Friend, I want to say that when
the government made the definition of supply, then they did
not leave the simple thing here that in section 7, supply
means that you are exchanging sales for money or kind and
for business purpose.
This is not the only thing that comes.
Sometimes there are such conditions.
For example, I am running a company and I have branches all
over the
world. Now see, what can I do to cheat? I don't want to pay
GST on any transaction.
See, what is my mentality? What is the mentality of the
government? To catch this person and collect maximum tax
from him, suck his blood.
He should not have anything left.
And at the
same time, what does the taxpayer think? Taxpayer always
thinks that how can I reduce my tax
at least? Save that tax.
To save tax means to save GST.
And to save GST means how will
I save GST if I somehow get out of the definition of
supply? If I get covered in the definition
of supply, then GST is applied.
If I get out of the definition of supply, then will GST be
applied on me? No.
Okay. Is something going on? If I have to save GST, I don't
want to
give GST, then should I get out of the definition of
supply? Okay, sir.
There were many such transactions going on, sir.
Many such people have many such ideas.
For example, if this is the map of India and you have an
office somewhere here.
If you have an office somewhere here and you have a
requirement of services, you like to take services from
your own branch.
For example, if you have to develop a software and one of
your branches is in India and the
other branch is in the UK.
You have another branch in the United Kingdom, this is your
branch, a small one.
You called your branch and said, I want to develop a
software, I want a service, a software development service.
I want to develop a software, I want to get it done from my
own branch.
Because it is my own branch, I don't raise any billing on
it, nor will that branch raise any bill on me.
This is an instruction to the entire office, to the head
office and to the branches.
That if you give any services to each other, if the head
office gives any service to the branch, if the branch gives
any service to the head office, then you don't have to
raise any bill.
Understand the meaning of not raising any bill.
Whatever I am saying is somehow related to the definition
of supply.
The definition of supply is behind you.
And I am saying, don't raise any bill.
Don't raise any bill.
Means don't charge any money.
If no money is being charged, come to the definition of
supply.
Is the sale going on? Is the software service being
provided? Yes.
Is it being done for business purpose? Yes.
But is the money coming?
Is the money coming when the head office says that no one
will bill me, I will not agree.
Don't raise any bill.
There is a zero rupee transaction.
Multinational transfers are taking place.
No one will raise any bill.
It is our own company. We don't want to raise any bill.
No transfer raising will take place.
Is there any consideration? No.
So is this supply there? No.
Is it out of the definition of supply? Yes.
Is GST there? No.
The person saved GST.
One branch is providing services to another branch.
There is no consideration.
There is no definition of supply.
In this case, the government would have incurred a huge
loss.
This is why the government said that if you import
services...