Good morning, good evening, good afternoon, whoever is
watching me at this time, please give my heart to that
person, my name is C.S. Shreyagupta, your friend, your
companion, your fellow traveler.
In this GST discussion, your friend, how are you all? Are
you good? Are you having fun? Are you fighting? Are you
fighting in life? Are you able to understand things?
Are you trying to understand the things that you are not
able to understand? Are you trying? Are you fighting the
struggles of life?
If you are not fighting, then my dear, remember that no one
is going to do anything in your life, nor will you be able
to do anything of your own.
In life, only those people come forward who know how to
fight, who know how to get hurt, who know how to fall, and
who know how to get up after falling.
In life, everyone gets a lot of success. There is no such
person who, in the first shot, in the first attempt, in the
first attempt, achieves success.
If you look at the big businessmen, all of them, Tata,
Birla, all of them, this is not their first business where
they have become successful.
Sachin Tendulkar, you know him as a batsman, but he had
come to become a bowler earlier, do you know this? He used
to bowl earlier.
He had failed in bowling, he came in batting. Amitabh
Bachchan, he had been rejected by All India Radio.
Then he became a superstar in acting. You have to face
rejections.
There are failures, but failures also have to be embraced.
Just like you embrace success, failures also have to be
embraced.
After all, they are also my children. If success is my
child, then failure is also the same child who has taught
me how to achieve success.
Success is disloyal, remember this.
It comes for a short time and leaves with it.
Failure is the biggest teacher, it teaches you everything.
How to behave, how people's behavior changes when you fail.
All these things are taught to you by failure.
You don't lose when you fall.
You are a man, not an avatar.
So stand up and work hard.
I motivate you so that you get a good start.
That's why I motivate you, so that you get a good start.
Because after that, it becomes a habit of a person to work
hard.
The most powerful gear in the car is the first gear.
The strength in the first gear is not as much as in the
fifth gear.
The first gear starts the car and brings it into a little
movement.
Let's start our topic.
We were discussing about supply.
Why was there a discussion on supply?
What was the need for supply?
What was the need that we are discussing about supply?
Someone asks you, will you get GST or not?
What is its taxable event?
Taxable event is supply.
Supply of goods and services.
What was the definition of supply?
We went to section 7.
The definition of supply is,
Whether it is sale of goods, barter, exchange, license,
rental of goods and services.
Consideration is about money.
Consideration can be in cash or kind.
And for business purpose,
In the course or furtherance of business,
Then what will be considered in that case?
If these three conditions are satisfied,
Then what will be considered?
It will be considered as supply.
But there were some such cases,
That import of service is taking place.
Consideration is also taking place.
Money is also coming.
But there is no business purpose.
You are importing services.
You are giving money.
But it is not for business purpose.
That too they have covered in supply.
Look at this point.
This was also discussed in the last lecture.
It was also read.
After that, schedule 1.
We have to discuss about this.
Schedule 1, there are some such activities.
There are four such activities.
There are four such activities,
Which says,
That you are doing sale of goods and services.
It is a good thing.
There is no consideration.
If there is no consideration,
Then supply should not be considered.
But, Still, Schedule 1 says,
These four activities,
If you are doing supply,
If you are doing sale,
And there is no consideration in this.
Consideration is not involved in this.
Still, what will be considered?
It will be considered as supply.
Today, we have to cover this topic.
We have already covered these two topics.
Today, we have to cover only this topic.
Keep supporting me.
Come here.
There is nothing.
Look at this.
Schedule 1.
Activities, What is Schedule 1 saying?
Activities, To be treated as supply,
Even if,
Made without consideration.
Sales are being done without money.
Services are being provided without money.
If there is no money involved,
Then what is supply?
But still,
Schedule 1 says,
No, Money is not involved.
No problem.
Still, it will be considered as supply.
And if it is considered as supply,
Then GST will be applicable on it.
You have to raise the bill.
And in that,
You have to show GST.
That, I am getting GST of Rs.
Is the point clear?
Come here.
Permanent transfer.
Look at the first point.
What does the first point say?
One minute.
Let me see.
Permanent transfer,
Or disposal of the business assets,
Where, Input tax credit has been,
Availed on the asset.
Permanently, You are transferring your assets.
Doing it for free.
Because, All these points say,
You are providing services,
Or goods,
Doing your sales,
But, In return,
You are not receiving money.
In a way,
You are trying to show the government,
That, You are not getting money.
Even though,
I have done my sales,
But, I have not received the money.
I have not received the money.
When there is no money,
Then there is no supply.
And when there is no supply,
Then GST is also not applicable.
But, In this case,
In Schedule 1,
The government,
Became a little strict.
They said,
No, We will tell you four activities,
That, Brother, If you do it without consideration,
Then also,
You will have to pay GST.
What is it?
Come here.
See, What does it say?
The point is very simple.
There is nothing.
You are transferring permanently,
Your business assets.
Any kind of disposal,
Or transfer of the business assets.
Business assets means,
Which assets?
Some such assets,
Which you are using in your business,
On a regular basis.
Like, Some plant,
Some machinery,
Computer, Table, Furniture, Car, Leave the car,
Take something else.
Any assets,
Which you are using in your business,
Take normal assets,
Any assets you use in your business,
You are transferring it permanently.
Permanently transfer means,
You have given those assets to someone.
Now, You cannot recover those assets,
From that person again.
For example,
I have a cloth business.
I sell cloth.
I am selling cloth.
What is my cloth?
It is a stock.
It is my inventory.
Now, I have bought this inventory with money.
I must have paid GST on it.
Input tax credit.
I am availing it.
If I have availed its input tax credit,
Or I am availing it,
And in future,
I give this cloth to my friend for free.
This happens a lot.
A friend comes to the shop and says,
Give me this cloth.
I pick up the cloth,
And give it to him.
I say,
Take it.
If I,
For free,
What am I doing?
I am doing permanent disposal of business assets.
I have given my business assets permanently.
What was business asset?
Cloth.
What was cloth?
Stock.
I had stock.
What is stock?
It is a business asset.
It is my inventory.
I have given my business assets,
Permanently, To a friend.
Second example.
I have bought a furniture.
And in my house,
Or for example,
The furniture which is kept in my office,
Which I have bought and brought,
There will be a demand,
Brother, The furniture which you have bought,
A friend comes and says,
I like the design of this furniture.
And I want to see it.
The girl's family is coming.
Do one thing.
They will be impressed by seeing this sofa.
This is a very expensive,
Realistic sofa.
It is such a sofa,
That by sitting on it,
A person's intellect changes so much,
That the decision which is not to be taken,
He takes that decision.
I say,
Have you seen this sofa?
He says,
But I am taking this sofa.
But I am taking it on the condition,
That I will not give you any money for this sofa.
I say,
Have you gone mad?
I have a friend, I have a friendship, I don't have money, I
have a friend, there is a very old dialogue of Bhagyashree
that in friendship, no sorry, no thank you.
So what's the point of money in friendship? I said take it,
your house will be saved, what's the big deal for us? So he
took the sofa to his house, what did I do permanently?
I took the sofa permanently, it was my business asset, it
was my furniture, I kept it in the office so that if a
client comes, they can sit on it peacefully,
even if they don't have the mind to make me work, they can
make me work.
I had recited some mantra in the sofa, I had put some holy
ash in it, even if they don't have the mind to make me
work, they can make me work.
Now I gave the sofa permanently to my friend.
Permanent transfer of the business asset was done.
I will never take the sofa from him again.
I said if you took it, then take it, what is there to take
it back from you?
I gave you a memorable gift for your wedding, go. In this
case, because I didn't give the money, he didn't give it to
me, nor did I take it, there is no consideration.
Business asset is being transferred. Transfer means the
definition of supply, sale, transfer, barter, exchange.
Business assets are being transferred, but money is not
being involved.
So in this case, should it be considered as supply?
We will find the answer to this. He said that if you have
taken ITC, see what he is saying.
First let's read it completely. Any kind of transfer of the
business assets, like in our example, it was the sofa and
in the previous example, it was the cloth.
I have given you two examples. Made by an entity on a
permanent basis, without consideration, qualifies as supply.
Supply will be considered and if it is supplied by mistake,
then GST will be imposed on it.
GST will have to be imposed on it. GST liability will be
attracted.
It is important to note that this provision applies only if
the input tax credit has been availed.
If I have taken ITC for the cloth I bought, then it will be
considered as supply.
If I have taken ITC for the sofa I bought, then also it
will be considered as supply.
If I have taken ITC for the sofa I bought, then also it
will be considered as supply.
For example, I bought a sofa worth 10 lakhs. There were
some precious stones in it.
It was a sofa worth 10 lakhs. And for example, by imposing
18% GST, I bought a sofa worth 11,80,000.
I have taken the credit of this 18% which I explained to
you in the beginning of the lecture.
What was the meaning of taking this credit?
I have taken this credit.
The output tax liability that I will face in future,
the tax that I will collect from the customer during sales,
to deposit to the government,
I will minus all these taxes.
If I have taken the credit of business assets, then I will
transfer them permanently.
I have taken the credit and I have all the business assets.
For example, I bought a cloth worth 10 lakhs.
By imposing 18% GST.
It has a total value of 11,80,000.
I have it with me now.
It will be used for manufacturing.
I have taken the ITC on it.
And then during the meantime,
my friend comes to me and says,
give me the cloth.
I gave him the cloth for free.
I gave it permanently.
Now I cannot take it back.
I have taken the ITC. I have made it available.
In that case, the supply will be considered.
Although I have not taken any money from it,
but still it will be considered a sale of goods for me.
I will have to deposit GST on it.
Permanent transfer of the business assets,
on which you have taken the ITC.
And if you look at it properly,
you have enjoyed.
You bought a business asset worth 10 lakhs.
You bought a stock worth 10 lakhs.
Whatever tax you had to pay on it, you paid that tax during
the purchase.
And not only this,
you have taken the credit for the tax you paid.
You have taken the credit for the tax you paid.
So you have enjoyed.
Your output liability,
which was supposed to come,
has become less than 1,80,000.
When you took the credit,
although you have not used this asset yet, you have not
even sold it yet.
When you bought the cloth,
you bought it thinking that
I am buying the cloth and will sell it later.
Or I will process it later.
After processing it,
I will sell the final product.
You sold it. You did not sell it.
You did not sell it.
If you had sold it,
then you would have minused the input tax credit.
You did not give us any objection.
You have not even sold it yet.
And you have even minused the input tax credit.
Sir, please pay the tax once again.
When you have minused the input tax credit,
when you have minused the input tax credit,
then the minused portion,
which you have minused for free,
sir,
give it to the government.
The government should get it.
Do you understand what I am saying?
It is an asset.
You bought it.
You paid the tax at the time of purchase.
It is an asset.
When you will sell it legally,
then you have to use its ITC.
I did not do that.
I have already used its ITC.
I have already finished the ITC.
And I have given the asset for free.
I have used the ITC.
I have also taken the benefit.
Sir, the benefit that you have taken,
it is a simple thing.
It will be assumed that you will have to deposit GST later.
It is a simple thing.
There are three conditions.
There is a transfer of business assets.
There is a permanent transfer.
And you have already taken the ITC.
Okay, sir?
What is he saying about the last condition?
One minute.
Come here.
What is he saying about the last condition?
In view of the last condition,
permanent transfer without consideration
will not be covered
and will not be deemed as supply.
Say, business assets on which either the ITC is blocked
or is not available in GST.
If I buy a business asset,
on which either the ITC is not available
or if the ITC is not available,
then which credit will I take?
I do not have any ITC.
I do not get any ITC.
When I do not get any ITC,
then I will not be able to take any credit.
When I have not taken any credit,
then will I fall under the condition?
There is a permanent transfer of business assets
without consideration.
But the ITC is not available.
If the ITC is not available,
then it will not fall under Schedule 1.
If it does not fall under Schedule 1,
then it will not be deemed as supply.
This is the point.