Yes, friends, how are you all? Good morning, good evening,
good afternoon, whoever is watching me at this time.
I heartily welcome that person, friends, to our new
Dharavai lecture.
Sir, Dharavai lecture? What are you saying, sir?
What is this Dharavai lecture, sir?
Friends, you watch Dharavai episodes.
Episodes come out every day.
Can't you watch the class every day?
Such a big superstar is standing in front of you.
Can't you watch him carefully?
Friends, how are you all?
Great fun outside.
Everything is going well.
You are fighting life.
You are learning things.
Never stop putting effort, friends.
Life doesn't run on the power of IQ.
Life always runs on the power of I can.
I can do it.
I am sure I can do it.
I don't have overconfidence.
That only I can do it.
I don't have this overconfidence.
I have confidence that come.
Come, life. Come.
Test me.
I can do it.
I can face problems with courage.
Obstacles come, anything comes.
I will come out easily, sir.
This is the confidence to live life.
Have you seen Bahubali film?
There used to be a waterfall in it.
In the first part.
He used to try.
Failed for the first time.
Failed for the second time.
Failed for the third time.
Failed for the fourth time.
He crossed the waterfall and went that way.
Where he found such a fair girl.
Sir, that is why it is said that any failure, any obstacle,
any hurdle can stop you to a limit.
Just like humans have a limit.
Similarly, obstacles also have a limit.
Problems also have a limit.
One limit can ruin you.
After one limit, even that can't ruin you.
Sir, remember Ramayana.
When Lord Hanuman reaches Lanka,
there Ramayana says tie this monkey with a rope and set it
on fire.
Sir, tell me one thing.
What happened at that time?
The rope, Lord Hanuman had made it so big that even the
rope could not cover it.
Sir, that is the rope.
Problems are limited.
But you are such a person that every person has unlimited
opportunities, unlimited ambitions, unlimited power.
Sir, we just don't have that confidence.
We don't have the confidence that we will be able to do
this work or we won't be able to do this work.
It is because of this confidence that we face problems in
life.
Be like Lord Hanuman.
There is a rope.
It doesn't matter if you tie it with a rope.
We will make it so big that the rope won't be able to do
anything.
Make yourself bigger than your problems.
What is the limit of problems that can ruin you, sir?
Sir, you were hanging upside down in your mother's womb for
9 months.
You came back alive from there.
Life itself is a struggle.
But the one who has faced this struggle is the one who has
won.
He said, I can.
I am standing here.
Learn to put effort, sir.
Without effort, there is nothing.
To achieve anything, effort is required.
You see a person's body is very good.
He has six-pack abs.
Wouldn't he have put effort?
Wouldn't he have gone to the gym for 3 hours?
You see today, this person has become IAS.
He has such a great life.
Wouldn't he have put effort to reach there?
You see a businessman who is printing crores of rupees
every day.
Wouldn't he have put effort to reach there?
Sir, remember, as long as you are alive in life, always
keep hope alive.
And put effort in everything.
Without effort, there is nothing in life.
And believe me, when a tea vendor can become the Prime
Minister of the country,
I am talking about
Mr. Narendra Modi.
A person who can walk 10 kilometers daily can become the
Prime Minister.
I am talking about
Mr. Narendra Modi.
When a small accountant's son can become the Superstar
Akshay Kumar, then anything can happen in life.
Life changes like this.
But it changes for the one who is continuously working.
Who doesn't dream.
Dreams are those that don't let you sleep.
Not those that you see while sleeping.
That's why, keep putting effort.
Keep working hard. Come on.
We were talking about
Schedule 1.
In our last lecture, we were talking about Supply.
What is Supply?
Schedule 1 activities are also covered in Supply.
What is Supply of Goods?
What is the definition of Supply of Services?
We had covered that.
Today, I want to focus on the topic of Schedule 2.
Schedule 2.
What is Schedule 2?
It differentiates.
It makes a difference.
It separates things.
It tells that the thing that you are supplying, we have
accepted that in the definition of Supply, plus in Schedule
1, this thing is Supply.
This thing is fixed now.
We don't have to discuss about it anymore.
We know that this is Supply.
But what is Supply?
Supply of Goods is
Supply of Services.
This difference tells you about Schedule 2.
Sir, what is the need of this thing?
Why did Schedule 2 come?
If Schedule 2 was not there in our life, what difference
would it have made in our life?
Life was going well.
Why did Schedule 2 come?
The answer is that, friends, the problem was that for
example, you want to sell this coat in the market.
For example, you want to sell a coat in the market.
Suppose it is a coat worth 10,000.
You show your sale price of 10,000 and you put GST on it.
Now, what happens in GST?
The rate of taxes in GST is always different.
The rate of goods is different and the rate of services is
different.
A simple point.
The rate of goods is always different in GST and the rate
of services is always different.
Now, the problem is that you are selling a coat.
What do you know?
How do you know? Where is it written?
That the coat you are selling is a supply of goods or a
supply of services.
How do you know that the rate of goods should be
GST or the rate of services should be GST?
How do you know this?
Sir, it is a coat.
It is a coat. It looks like a product.
It is not a service.
It looks like a product.
I am selling goods.
It is a matter of common sense.
It is a product.
So, the rate of GST on goods will be GST.
Sir, you are saying that you know it is a matter of common
sense.
But, listen to me carefully.
When you read a law, an act or a law, it is not a matter of
common sense.
It is a matter of what is written.
Is there any provision written?
Law, code, court, act, it is not a matter of common sense.
It is a matter of what is written on paper.
I will tell you the best example of this.
Listen to it and relax for 2 minutes.
Once, there was a great lawyer,
Mr. Motilal Nehru.
He was the father of Mr. Jawaharlal Nehru.
He was a great advocate.
He was an advocate during the British rule.
When he was fighting a case of a client, the judge
sentenced him to death.
The judge sentenced him to death.
And the order that came, it was written, he shall be hanged.
So, Mr.
Motilal Nehru appealed against that order.
He said, your judge has written that he shall be hanged.
You have to hang this person and the next second, you have
to hang this person.
What kind of madness is this?
Does this ever happen?
Hanging means that you have to kill this person.
Hanging means this.
He said, hang him.
The judge said, hang him.
So, Mr.
Motilal Nehru also came.
He said, hang him for one second.
Just for one second.
The next second, we will hang him.
What will happen in one second?
He reached to this point.
He said, your judgment has been written. It is written in
the law that he was hanged.
That person was acquitted.
He was hanged.
He was hanged for a second.
The next second, he was released alive.
His client was saved.
A man was saved who was sentenced to death.
Think about it.
Such a man was saved.
Just because the whole thing is not written in the law.
After that judgment, an amendment was brought.
It was changed in the law.
And whenever a death sentence is given, it is written,
He shall be hanged till death.
He will be hanged till he does not die.
This is the matter.
It is not a matter of common sense.
In the law, things are written on paper.
On the face of it.
What is written in the paper is the law.
Apart from that, there is no common sense.
My question to you is that you are selling a coat.
Do you have any proof that it is a good?
I say it is a service.
Do you have any proof that you are selling a good?
Do you have any proof that it should have a GST?
Do you have any proof?
For proof, we will go to Schedule 2.
Schedule 2 differentiates us as to which things are in the
category of goods and which things are in the category of
services.
And in the category of goods, the goods will have a GST.
And in the category of services, the services will have a
GST.
This is the point.
Thank you.
Shall I go now?
Come with me.
Let us see what it is.
Schedule number 2.
Look at it.
Shall I keep the laptop a little higher?
That is fine.
Look at it.
It has given you a list of some things.
In that list, it has told that these things are the supply
of goods and these things are the supply of services.
As I have told you many times, there was an example of a
restaurant.
When GST did not come in the restaurant, then the service
tax was also imposed and the sale tax was also imposed.
Because it was not fixed that this is a service or a sale.
Food is also being sold, but the violin is being played
there.
The violin is being played there.
Raj Aryan is also a service.
The waiter is also a service.
It was not fixed.
But here,
Schedule 2 has removed our confusion forever.
It has fixed these things.
Come with me.
What does it say?
Why is it not going up?
Schedule 2 is coming on my notes.
Page number 2.
3, 8
Look at it.
The first activity is
Transfer of title in goods.
Transfer of the title in goods.
You are selling something.
The same case has come that I am selling a coat.
How do you know that the coat I am selling is the supply of
goods?
That it is the supply of services?
How do you know?
Sir, how do you know?
Come here in Schedule 2.
The first point is written.
Transfer of title in the goods.
I give you the ownership of this thing.
This coat that I had till now,
I give you the ownership of it.
You gave me money.
I sent you the coat.
The ownership has gone to you.
Wear the coat.
Tear it.
Play with it.
Break it.
It is your wish.
Look at it.
What is the nature of Transfer of title in the goods?
This is the supply of goods.
Come here.
Next point.
Transfer of right in the goods without the transfer of
title.
You gave the right to use the goods.
Do you have any goods?
You gave the right to use them to a person.
Is any goods going in this case?
In this case, only the right is going.
For example,
I have a machinery.
I have a machine.
Very expensive.
For 10 lakhs,
For example,
I bought a photocopy machine.
I thought that I will do photocopy business.
I bought a very big photocopy machine.
For 10 lakhs.
But I opened a shop in such a place where there was no one
to read and write.
I did not have any sale there.
What should I do now?
I have a machine for 10 lakhs.
I am not getting any sale.
What should I do?
Sir, I came up with an idea.
I thought that why not why not I give this photocopy
machine to a person why not I give this photocopy machine
to a person who wants to start photocopy business.
I came up with this point.
Why not I do this?
Why not I give this photocopy machine to someone for rent?
I did the same thing.
A person comes to me and says outside a college or in a
court
I have to install a photocopy machine.
I do not have money to buy a machine.
You do one thing.
Keep taking 10,000 rupees a month from me and give me this
machine for rent.
What did I do?
I gave the machine for rent.
Did the machine's owner go to him?
Yes or no?
No.
The owner's right is with me.
What did that person get?
That person only got the right to use the machine.
Here, only the right is being traded.
The goods are not being traded.
I have given the right.
This is the supply of services.
Okay? No problem.
Any transfer of title in the goods in any such agreement
which stipulates that the property will be given to you at
a future date.
What will that be?
Supply of goods.
Take an example.
This is Dhruv Capital.
It has supplied goods to the customer on the basis of
higher purchase.
Keep giving monthly rentals.
As soon as the rentals are completed, this machine will be
yours.
Pay the rent for 3 years.
At the end of the third year, this machine will go to you.
What will happen in that case?
Supply of goods.
Because somewhere in the future, that machine will be his.
Higher purchase agreement.
Every month, I made such an agreement that you keep paying
me rent every month.
After 3 years, this machine will be yours forever.
Ultimately, goods are going somewhere or not.
They are not going today.
They will go in the future.
So what will happen?
Supply of goods.
So what will be the GST rate on this?
The GST rate which is applicable on goods.
Suppose there are two things.
The rate of 18% on services.
And the rate of 12% on goods.
So when you make a billing of Rs.
10,000, for rent, in the billing of Rs.
10,000, you add 12% GST and give the bill to the customer.
Is the point clear?
Come here.
Land and building.
In land and building, lease, tenancy, license to occupy the
land.
You have an empty plot.
You thought what should I do?
You have an empty plot.
You are roaming around with the plot.
Should I lease this plot to a car showroom?
A car showroom has to park the car at the back end.
You can see models of 10-15 cars in the showroom.
But the stock of the car needs a place to keep the stock.
Suppose he does not have that place.
You have that place.
You leased that place to him.
Rs. 10,000-20,000 per month as rent.
What did you do?
You gave your land on lease.
What is that?
Supply of services.
Second example.
Lease.
Letting out.
You leased a commercial building.
Industrial building.
What is that?
Supply of services.
Whatever bill you charge your customer.
You are the landlord.
Whatever invoice you give your tenant, there is supply of
services on that.
Because there is supply of services, the GST rate
applicable on the service, that GST rate, you charge on
your bill.
Next is Job Work. You do processing on a person's goods.
What is processing? Supply of services.
For example, as I told you, we do the work of clothes.
We have a factory.
Sometimes we buy goods.
We buy clothes.
And we have a tailor.
He is external.
He is not our in-house tailor.
He works outside.
I told him to hold this.
And you have to sew 1000 shirts in a month.
What is this? Treatment is being applied on some other
person's goods.
He is doing treatment.
He is doing tailoring.
So now the services he will give me, what services are
they? Supply of services.
He is giving me services.
He will charge GST of goods.
Whatever invoice he will give me, whatever bill he will
give me, he will not charge GST of goods.
He will charge GST of service category.
How is our next? One minute.
Why is it not coming down? Actually my laptop is a little
old.
Transfer of business assets.
Goods forming part of business assets are transferred under
the direction of the person who is carrying on the business.
So I have sold the business assets. I have furniture. For
example, I have a laptop.
I am fed up of it. It is an old laptop. It stops while
walking. It does mischief.
I have made up my mind that I will kick this old laptop out
of this office.
I will sell this laptop.
Now what is this? It is a business asset.
It is my business asset and I am transferring my business
asset.
I am selling my business asset.
So what is this called? Supply of goods.
If you apply common sense, although I have forbidden you
not to apply common sense here.
But if you want to remember what will come in goods and
what will come in services, this is the way to remember it.
See, are goods getting involved in the entire transaction?
In this case, I am selling a laptop.
Are goods getting involved? If they are, then what is it?
Supply of goods.
If they are not getting involved, then what is it? Supply
of services.
Goods held for business are put to private use.
A laptop was bought for business, but my girlfriend liked
the laptop so much that she said, I will keep the laptop.
A man bought a furniture for his office.
His son said, dad, the design of the laptop is very good. I
will keep it for playing games.
A furniture was bought for business.
Madam came from home.
Madam said, the quality of the furniture is very good.
We will not put this furniture in the office.
We will put this furniture at home.
In-laws will come.
A different impression will be made.
Your value will increase.
Along with you, my value will also increase. This is how it
is. Sir, there are such things in life that what to tell,
what to share.
What should a person do? A poor person is suffering.
Is there any furniture for the office? Are there any assets
for the office? You did nothing.
You just put it for the office purpose, for the private
purpose.
What is this simple? Are you selling any goods?
Are goods being sold here? Nothing is being sold.
When goods are not being sold, there is no involvement of
goods, then what will be considered as supply of services?
Goods forming, part of the assets of any business carried
on by a person who ceases to be a taxable person shall be
deemed to be supplied by him in the course or furtherance
of business.
For example, you are a taxable person today.
Taxable person means, today you pay GST.
In GST, there is a requirement to pay your tax.
But God forbid, if something like this happens to you in
the future, your wall is broken, you have taken a loan, you
have not been able to repay it, there is a loss in
business, something like this happens that you have to
close your business overnight.
I had to close my business overnight.
I cease, cease means I am not anymore, I am finished.
I am not a taxable person anymore.
I was a taxable person in some time, but now I am not a
taxable person.
In that case, what will be considered as supply of goods?