Sometimes, there are such conditions that the government
has put in the definition of supply that if there is
something like this, then it will also be considered as
supply.
Such is the condition of import of services.
For example, you are sitting here in India. You are a
registered person in GST.
And you have imported some services from abroad, for
example USA.
For example, there are services for software development.
If you want to buy a software, you have to get it developed.
In USA, there is Silicon Valley.
Like Bangalore, there is Silicon Valley.
IT work is very good there.
So, if I want to develop a software, I get it developed
from there.
I am buying services for software development.
And what is this? I am importing services.
I am importing services from abroad.
Just like there is import of goods, there is also import of
services.
There is import of services for consideration.
I will pay this person in dollars or in rupees.
There is import of services.
Payment is going either in dollars or in rupees.
Sir, it is fine. Supply is done.
Sales are taking place.
Sales of the software are taking place.
Services are being sold.
You told me the second condition.
Consideration.
You are giving money.
Should I pay it in dollars or in rupees?
It is fine. Supply is done.
GST will be imposed on this.
GST will be imposed.
I said, no.
My dear friend, my brother,
as well as my sister.
My third point.
You may not have heard.
My third point is that this person who is developing
software in India.
You did not ask me what software he is developing.
This is gaming software.
His child is 10 years old.
He says, Papa, I want to develop a game.
I want to develop a software in which games run.
Solid games run.
I have heard in America, games run well by racing.
I want that software.
Develop that software for me.
Poor father, helpless.
What did he say in front of the child?
He said, okay.
I will develop a gaming software for you.
You sit at home and play games.
I got it developed in the US.
I gave the money in rupees or dollars.
But what was the purpose?
Look here.
Sale of the software is happening.
Consideration has gone.
But what is the purpose?
Is it a business purpose?
It is not.
Is GST in this case?
It should not have been like that.
But the government has put a condition.
If you do import of services, even if you are doing it with
money, but even if it is not for business purpose, then you
will remove it from the definition of GST.
That it is not for business purpose.
We have brought it for personal purpose.
We have done import of services.
Okay, we have given the money.
But it is not for business purpose.
It is for personal purpose.
So, remove it from GST.
Why should I pay GST on it?
So, the government will tell you that you should pay GST on
it.
Because the objective of the government will always be that
the more tax is collected from the taxpayer, the better.
At the same time, what will be the intention of the
taxpayer?
The intention of the taxpayer will always be to save the
tax and GST.
How to save GST?
By getting out of the definition of supply.
How to get out of the definition of supply?
Okay, it was a consideration.
Okay, it was a sale of services.
But the purpose was personal.
The purpose was personal.
So, how can it come in GST?
So, the government has put a point in the definition of
supply.
In the definition of supply, what point did the government
put?
The government put that this is this is the definition.
If you import some services with it, import of services is
happening.
You are paying for it.
Even if it is not for business purpose, then also it will
be covered in the definition of supply.
Import of services is happening.
You are paying for it.
But it is not for business purpose.
Even if it is not for business purpose, then also it will
be covered in the definition of supply.
And on top of that, your liability of GST will be attracted.
This is the point.
Sometimes, it also happens.
Sometimes, it also happens that to save GST, the three
conditions of GST, the three conditions of the definition
of supply, whether it is sale, barter, license, rental, for
consideration, whether you are paying for it, or bringing
it in cash, or for business purpose, if all three are
satisfied, then it falls in the definition of supply.
As soon as the supply is done,
GST is attracted to it.
So, what will a person think?
In the last example,
I had said that it is not for business purpose.
It was a software for children to play.
But in this example,
I will say that
I am taking the services.
I am taking the goods.
But without consideration,
I am taking it.
Without consideration, how can GST be attracted?
How can GST be attracted?
Without consideration, how can GST be attracted?
In that case also, the government said that you are being
so smart.
Let's add one more point.
Without consideration, if you bring something, it will also
be considered as supply.
Don't give money.
You don't want to give money, right?
Don't give money.
But still, we will consider it as supply.
We will discuss it later.
This is called Schedule 1.
Schedule 1.
Schedule 1 tells you that you are taking goods without
money.
You are showing that there is no consideration.
If there is no consideration, it is not covered in the
definition of supply.
If it is not covered in the definition of supply, it is not
considered as GST.
What will the government say?
The government will say, come to Schedule 1.
We have made Schedule 1 for scoundrels like you who pay
taxes.
You will work without consideration.
You will work without money.
This is called Schedule 1.
In Schedule 1, it is written that you supply services
without giving money.
In that case also,
GST is liable.
And before that, there is a definition of supply.
So, we will gather these three things and start reading
from here.
I will stop this lecture here.
In this lecture, I have basically built up your base.
I have not made you read anything.
I have not made you read any notes.
I have simply built up your base that what is supply?
Why is it needed?
Why do we want to see this definition?
What will be the difference of this definition?
To avoid this definition, what happened to the solutions
that you came up with?
All these things are covered here.
In the next lecture, when I will make you read,
I will explain more things.
Till then, thank you very much.
Bye-bye.