Taxable Event In GST

1. Meaning of Taxable event :

Taxable event is that on happening of which the charge is fixed. It is that event, which on its occurrence creates or attracts the liability to tax. Such liability does not accure at any earlier or later point of time. Even though taxable event happens to be at a particular point of time, the levy and collection of such tax may be postponed for administrative convenience, to a later date - Goodyear India Ltd.  v. State of Haryana (1990) 76 STC 71 (S C) = 1990 UPTC 198 = AIR 1990 SC 781 - -  quoted with approval in State of Kerala v. Alex George 2004 AIR SCW 6552 ( SC 3 member bench).

Tax become payable when liability to pay tax arise and liability to pay  tax arise by the happening of the taxalbe event -  Kalwa Devadallain  v. UOI (1963) 49 ITR 165 (SC)  MA Co. v. Asstt Commissioner (1964) 15 STC 487 (All HC). 

Tax can be imposed only on ' taxable event'. However, all taxable event are not covered in legislative entries in Seventh Schedule to Constitution  -  Godfery Philips  india v. State of UP AIR 2005 SC 1103 = 139 STC 537 ( SC 5 member Constitution Bench).

2. Charging Section in CGST, SGST,UTGST and IGST  Taxable event in GST :

 Section 9(1) of CGST Act is the charging section for CGST. The Section reads as folloes-

Subjects to Section 9(2) of CGST of CGST Act ( Which states that GST on Petrolum Porducts will be levied at a later stage ), there shall be levied a tax called the Central Goods and Services Tax (CGST) on all intra- state supplies of goods or services or both, except on supply of alcoholic liquor for human consumption, on the value determined under section 15 of CGST Act and at such rates not exceeding 20% as may be notifies byCentral Goverment, on the Recommendation of GST Council and collected in such manner as may be prescribed.

3. General Meaning of 'supply' event in taxable GST :

Supply - provide or furnish (a thing needed) provide, meet or make up for (a deficiency or need etc.) -  Concise Oxford Dictionary

Supply - 'Supply' is that which is or can be supplied, available aggregate of things need or demanded, an amount sufficient for aa given use or purposae - Law Lexicon - P Ramanatha Aiyar

Supply - Furnish, sunstitute for -  Collins Gem Dictionary. 

Thus, 'Supply' is a very broad word.

'Supply' does not need 'considration' . Furthure, two separate legal entities are not required. One branch or division or depot can 'supply' goods or services to another branch, division or depot.

4. Supply as per GST law :

Section 7(1) of CGST Act as amenddde vide CGST ( Amendment ) Act , 2018 but Which retrospective effect from 1-7-2017, states that for the purpose of CGST Act, the expression 'supply' includes - 

(a)  all fromms of Supply of goods or services or both such as sale, transfer, barter, exchange, license, renta, lease or disposal ade or agreed to be made for a consideration by a person in the course or furtherance of  business 

(aa)  the activities or transactions, by a person, other than an individual,  to its members or constituents or vice-versa, for cash, deferred payment or other value consderation - clause (aa) instered vide section 108 of inance Act, 2021.

for the purposes of this clause (aa), it is hereby clarified that, not withstanding anything contained in any other law for the time being in force or any judgment, decree or order of any court, tribunal or authority, the person and its members or constitueeents shall be deemed to be two separate person and the supply of activities or transactions inter se shall be deemed to take place from one such person to another - Explanation to section 7(1) (aa) of CGST Act inserted vide section 108 of Finance Act, 2027.

(b)  importation of services, for a consideration whether or not in the course or furtherance of business and 

(c) the activities apecified in Schedule I, made or agreed to be made without a consideration.