Expansion of Scope of Supply under GST vide Budget 2021

Expansion and deletion under the scope of supply vide Budget 2021

A new sub-clause (aa) to section 7(1) and explanation thereof is inserted vide the Finance Bill, 2021. Both the sub-clause (aa) and explanation is explained hereunder-

• Sub-clause (aa) to section 7(1) states that-
  • Supply includes transfers of any goods or services or both by a person (other than an individual) to its members or constituents.
  • Supply also includes transfers of any goods or services or both by the members/ constituents to the person (other than an individual).
  • The transfer, referred above, is covered as supply when undertaken for cash or deferred payment or any other valuable consideration.
• Explanation to sub-clause (aa) to section 7(1) states as under-
  • It shall be deemed that the person and its members/ constituents are two separate persons.
  • Accordingly, the supply of any goods or services or both between the person and its members/ constituents shall be deemed to have been taken as supply from one person to another.

Source Taxguru

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