Good Morning, Good Evening, Good Afternoon
Whoever is watching me right now, please come to your senses
Open your brain, open your ears and come with me
We had started our discussion on the chapter of supply
What is supply and why do we need it?
Let me take a minute and revise it for you
Whenever someone asks you whether GST will be applied on my
product or not
Do you think it is covered in the definition of supply or
not?
What is the definition of supply?
Whether it is sale, transfer, barter or exchange
You are doing it for consideration, for money
And you are doing it for business, in the course and
furtherance of business
Not for personal purpose, but for business purpose
In all three conditions, there was a fall
Sale of goods or provision of services
If it satisfies all three conditions, then it comes under
supply
Supply of goods and services used to be considered
And GST provisions used to be applicable on it
GST liability used to be established
Then I told you that if import of service is happening
It is happening for consideration, but not for business
purpose
We covered it in the definition of supply
After that, if there is a supply but not for consideration
We covered it in the definition of supply
The objective of studying the definition of supply was
If supply of goods and services is there
Then GST provisions will be applicable on it
This was the point
Open your notes
Can you see the table of supply?
Supply includes, supply for consideration
These are the things I told you in the last lecture
There is nothing new in it
You will have such a revision
Supply for consideration
Consideration means money
Either cash or kind
Supply for consideration in the course or furtherance of
business
And it also includes import of services
You are giving money
In that example, we gave payment in dollars or rupees
There was consideration
There was import of service
There was service, there was consideration
But it was not for business purpose
Government has said, bring it under supply
Whether or not in the course or furtherance of business
Third, supply without consideration
Money is not involved
Supply is free, but still
In some cases, schedule 1 is specified
There are four items in schedule 1
Which will tell you that supply is happening without
consideration
But still, it will be covered in the definition of supply
And GST will be applicable on it
It excludes, means what is not there
What is not there in supply
This is there
These are the things that are there in the definition of
supply
Now in the definition of supply
What are the things that are not there
Negative list
Section 72 and Schedule 3
What is this? Schedule 1
In this, what is written in Schedule 1
That you supply without consideration
That will also be considered as supply
It will be covered in the definition of supply
And GST will be applicable on it
My Lord
And with Section 72, when you read Schedule 3
Schedule 3 is nothing
I am not scaring you by telling you
Sir, you are saying so many sections and schedules
Do you feel scared after listening to me?
Will we be able to do this?
Sir, you will be able to do everything
There is victory beyond fear
You will be scared, you will not be able to do anything
You will fight, you will achieve everything
Sir, by fighting, you get things in life
No one will serve you things in a plate
That come here, I will cure you
And take your success
Nothing happens, sir
You have to bring an attitude
You have to hold a stubbornness in life
And you have to fight that stubbornness
You have to fight things
People meet in life, demotivate
That you are not capable, fight them
How not?
Work on your objective
Even if you become No.
You have to become the No.
1 king of GST
To become a king, to become No.
You have to do training in such a way
That you are at No.
At No.
2, you will believe in yourself
Only then you will do the training of No.
Becoming No.
1 is not that easy
You have to make a lot of sacrifices
You have to fight
Fight Never step back from fighting
The one who did not fight
He does not know what will happen
He will miss out in life
The one who lost, did not fight
There is nothing else in life
Come here
The one who lost, did not fight
Schedule 3
What is there in Schedule 3?
There are some activities written in Schedule 3
Which are not supplied
Sir, what did you say?
Listen to me carefully
What I am trying to say is
Schedule 3 says that there are some activities
Which are not supplied
It means that there will be some sales
Of things
Sales of goods or sales of services
Will be happening
Money will be coming
Things will not be going for free
There will be consideration
And it will be for business purpose
These three things will be there
In the definition of supply
These three things are very important
All three things will be there
But still
My lord
It will be kept in Schedule 3
It means that
Still It will not be given
It will not be given
You are my wife
I love you
You love me
But the problem is that
I am already a married man
Will the other wife get that status
That love, that respect
She will not be able to get it
That is the thing
This point is based on all the factors
But still
It will be kept out of the definition of supply
Sir, why is this happening?
Why is the objective like this?
Why is it kept out of the definition of supply?
Sir, when you will read
Schedule 3
You will find that
There are some activities
There are some services
There are some goods
To which
Providing Is a person's ethical responsibility
Government's ethical
Responsibility Moral responsibility
Sir, what did you say?
Don't understand now
Understand when you will reach the point
Just understand that there are three things in the
definition of supply
And what did it exclude?
Schedule 3 activities
Then it says
That there are some activities
To which you will consider as supply of goods
And the rate of GST applicable on goods
Will be calculated
Secondly, there are some activities
To which you will consider as services
And the rate of GST applicable on services
Will be calculated
Who says this?
Schedule 2
There are three schedules in the market
Schedule 1, Schedule 2, Schedule 3
Schedule 1
Tells you that there is supply
If you are providing goods and services
Without any consideration
Schedule 2
Tells you that this is the supply of goods
And this is the supply of services
Like 2-4 days ago I told you
An example of a restaurant
In the olden days
When GST was not applicable
Then the food
The product
You used to go to a restaurant to eat
The restaurant owner
Used to charge VAT and service tax
He used to say
This is our product, we are doing a sale of goods
So VAT was applied
And then he used to say
We are providing service of violin
There is music playing, you are getting an aura
A waiter is coming
So he is providing service
Darbhan salutes you
That is also a service
You may be watching a cricket match on TV
That is also a service
At that time VAT was also applied
And service tax was also applied
It was very difficult to tell clearly
That this is a goods or service
But here Schedule 2 solved this problem
Schedule 2
Screamed Highlighted This thing
Was saying
And will keep saying
That this is a supply of goods
Or supply of services
Schedule 3 says
Yes, I fulfill all the conditions of supply
But still I will not
Agree to the supply
I will not
This is the point
Is it clear
Let's move ahead
Come here
Look here
The definition of supply
Supply is either a supply of goods
Or a supply of services or both
Apart from this
If you supply anything else
Then we will not agree to the supply
Either a supply of goods
Or a supply of services What is the definition of goods?
Goods are all kinds of movable property
Movable property means any property which you can move from
here to there like table, chair, furniture, computer,
donkey, horse
Movable property
Is building a movable property?
Should it be kept in the definition of goods?
It is a movable property
Services Services are anything other than goods
Other than goods
The rest are services
And both
Both do not include
Both Money and securities do not include
If you have sold some securities to someone
Shares you have sold in the market
On that
GST provision is not applicable
Why not?
Because it is neither goods nor services
Where is it written like this?
It is written in the definitions
It excludes money and securities
In the definition of services
It excludes goods and
Money and securities
Both do not come in the definition of goods and services
When there is no goods and services
Then what is supply?
And when there is no supply then what is GST?
This is the thing
Then the same definition
Supply includes
Sale, transfer, barter, exchange
Sale includes
Sale, transfer, barter, exchange for consideration in the
course of business
There are two requirements
Consideration Consideration Consideration And for business
purpose
It should be there
What is sale and transfer?
I have already told you
There is nothing
What is barter and exchange?
Look at the example
When a new car worth 5 lakh rupees
Is purchased in exchange of old car
Along with
Monetary consideration of 4 lakh rupees
Paid for the purchase
This is an example of barter and exchange
You bought a new car
You gave your old car
This is an example
Of barter and exchange
For example
A doctor
Gets his hair cut
And He gives medical consultancy for free
In this transaction
The doctor gives medical consultancy
To the new customer
And in return
What is the consideration?
The new customer is getting his hair cut
Sale of goods and sale of services
Medical services
What is the consideration?
The new customer is getting his hair cut
In the course of business
Supply will be accepted
Then Who told us about license and lease?
Look at this
Now Consideration What is consideration?
Consideration means
Payment Someone says
For example
Cricketers and actors
They add a lot of things
For ad
Sometimes they get money
Sometimes they get the product
For example
Take an actor
Shah Rukh Khan
Went to add Mercedes
Top model of Mercedes 3 crore
Shah Rukh Khan went to add
Shah Rukh Khan added
Give me 1 crore
From cheque
And a model of Mercedes
Give it to me
Gauri madam is sitting at home
She said no
I want Mercedes
For Gauri
I want Mercedes
I will add 2 crore Mercedes 1 crore
In this case
What is the consideration?
What is Shah Rukh Khan doing?
He is giving sale of services
Advertisement services
Is he giving services for consideration?
Yes He is not giving for free
Is it for business purpose?
Yes Supply is there
Goods and services are there
GST will be charged
When Shah Rukh Khan will give his bill
GST will be charged
But What will be the consideration?
Will it be 1 crore?
Will it be 2 crore?
Or total 3 crore
Consideration Think From Mercedes's angle
You are calling a film star
To add
He said I am taking 1 crore
Apart from that
I will take 2 crore car
So What is the outflow?
How much did you get?
How much did you spend? 3 crore
The money you are giving in cash
Is there
Consideration is not necessary
Consideration of cash
Consideration of kind
Consideration need not always be in the form of money
Look Whatever I say
Automatically gets printed in books
I have such power
Whatever I say
Automatically gets printed in books
We are talking about consideration
Consideration is not necessary
It can be in money
Or it can be in kind
It covers anything
Which might be possibly done
Given or made in exchange for
Something Look Consideration is not necessary
It can be done by a third person
It is not necessary that the owner of Mercedes
Is paying for it
It is not necessary that I am the owner of Mercedes
It can be done by a third person
Like I sold a person a Mercedes
For 3 crore
I had to take 3 crore from that person
He has not given me money
What will I say to Shahrukh Khan?
Shahrukh sir, do one thing
I have to receive 3 crore from that person
Do one thing
Go to that person and take payment
Here you go
I sold a Mercedes for 3 crore to Aryan Khan
I have not received payment
I will tell Shahrukh
Go and take money from Aryan Khan
Go and take 3 crore from Aryan Khan
In that case, I am not giving consideration
Third person is giving consideration
Aryan Khan is giving
But still that consideration
Will be considered
But keep in mind
Sometimes the government gives subsidy
If the government gives subsidy
Then it will not be considered
As a part of consideration
Like gas cylinder
Like government school fees
There are some things
Like Vegetables There are some things
When the government gives you subsidy
It is worth 1000 rupees
But the government tells the company
These are essential goods
Sell it for 700 rupees
The company will say
I will sell it for 700 rupees
My 300 will be deducted
Modi ji will say
Why will it be deducted?
Friends, I am bringing good days
We will give you subsidy of 300 rupees
Now when the government is giving you
Subsidy of 300 rupees
You will not include that subsidy
In consideration
What is the benefit for the customer?
The benefit for the customer is
If you sell an item worth 1000 rupees
And it would cost 18% GST
Then the cost would be 1180
The sale price would be 1180 But now the government
Has given you subsidy
When it is given
It is written in the definition of consideration
That it should not be included
So how much will it cost here? 700 rupees
Whatever GST will be
Spent on 700 rupees
Its sale price will automatically
Decrease The selling price
Will decrease
That is why
Subsidies are never
Included in consideration
Is the point clear?
Shall we move ahead?
Come here
Ok Have a look
He has given two examples
One is a donation example
If you have donated to a charitable organization
For example
I went to my school
I got a bench installed
Generally it came to me
That I am getting a bench
In my school
I felt like setting up a bench in the school, so I gave the
money for the bench to the school for consideration.
I said, take this Rs. 10,000-20,000. You take the money for
the bench and set it up.
They said, okay sir, no problem, we'll set it up.
When the bench was set up, it was written on it by 100
people.
It was written on it by 100 people that who set it up.
It was written on it by 100 people that C.A. Shreya Gupta
set it up.
I said, okay, that's a good thing.
If there is something like this written and it shows that
yes, I have put it as a charitable purpose, then it is fine.
The liability of GST etc. will not be considered as a
supply.
Because it is fine, it is a normal charitable purpose, that
person has given the money for the bench.
But here, suppose, suppose, there is Mukesh Ambani sahib.
Mukesh Ambani sahib, in a whole school, all the seats of
the school, all the benches of the school are changed.
New benches are put up.
And on every bench, which is written by 100 people, it is
written on it,
Mr. Mukesh Ambani, Managing Director of Reliance Industries
Ltd. and Reliance Industries Ltd. have done this work.
And we are giving credit to Reliance Industries Ltd. that
they have put up a bench in our school.
See, Reliance Industries is such a good company.
See, so much turnover of Reliance Industries.
See, how much benefit Reliance Industries has made to us.
Sir, in a way, what you are doing, you are advertising
Reliance Industries there.
Repeatedly, Reliance Industries, saying Reliance
Industries, advertisement is happening.
On that bench, which you have printed the entire bureau of
Reliance Industries, from that, somewhere or the other,
advertisement of Reliance Industries is happening.
So, what service will this be?
It will be a supply of advertisement services.
Consideration, Mukesh Ambani sahib has delivered the money
of the benches to you.
This will be considered as a service of advertisement.
If you are doing a normal charity, you have given money for
a charitable purpose, on that, if the name is written, your
name is written, and it seems so, it seems so, it can be
felt so,
that this is due to a charitable purpose.
This man is not doing his own personal advertisement.
So, brother, in that case, do not consider it as a supply.
Do not consider it as a supply.
It is a normal charity.
Do not put any GST or provisions on it.
But there, if the benches are being donated,
Reliance Industries is written there, the entire
advertisement is happening.
See, this company makes this, this, makes such and such
products.
So, brother, in that case, it will be considered as an
advertisement.
In that case, it will be a supply of goods and services.
This is written in it, sir.
See this, this paragraph, where the name of the donor,
Donor means the person who is donating,
Donor is displayed in the receiver's institution, in such a
manner, which can be said to be expression of gratitude.
I am expressing his gratitude.
Thank you very much for what you have given us.
It is an expression of gratitude.
Public recognition of the act of philanthropy.
Philanthropy means charity.
It is not aimed at giving publicity to the donor.
It is not giving publicity to the donor.
I am just expressing his good deeds.
So, in that case, it will not be considered as a supply of
service.
Then, it can be said that there is no supply of service.
No supply of service for our consideration.
Sir, this is the example.
Bhushan donated a blackboard to an institution.
It is a yoga institution.
So, the institution printed on the blackboard that
Donated and good wishes from Mr. Bhushan.
So, in this case, it is a charitable purpose.
It can be seen that the person has donated it for charity.
In that case, there is no supply of service.
It will not be considered as a supply of service.
Okay, sir?
This was the first point.
Please come.
The second point was, which I had told you about the supply.
Firstly, it was about consideration.
Secondly, it was about our business.
In the course and furtherance of business.
So, in the course and furtherance of business, what do we
have?
Let's pay attention to it.
What is the definition of business?
For example, I run a business on a regular basis.
For example, I have a cloth business.
I export cloth and also do domestic sales.
So, I do sales on a regular basis.
For example, I have a cloth shop.
I do sales on a regular basis.
It is a business.
But there is a person who does sales three to four times a
year.
For example, Rolls-Royce.
Rolls-Royce car.
Not every day, Rolls-Royce car is sold.
In a year, one or two Rolls-Royce cars are sold.
In a year, one or two transactions of sales are happening.
Is it considered as a business?
Should it go or not?
We will discuss about it.
Will you consider it as a business or not?
It is a very small point.
What is the definition of business?
Business includes trade, commerce, manufacture, profession.
Even if you are not able to get money from it.
Then it is not a business.