(a) An activity can be treated as supply, even if there is no consideration in the
following cases:
(1) Permanent transfer or disposal of business assets where ITC has been
availed on such assets.
(2) Supply of goods and/or services between related/distinct persons,
when made in the course/furtherance of business.
(However, gifts not exceeding ₹ 50,000 in value in a financial year by
an employer to an employee shall not be treated as supply).
(3) Supply of goods —
(a) by a principal to his agent where the agent undertakes to supply
such goods on behalf of the principal; or
(b) by an agent to his principal where the agent undertakes to receive
such goods on behalf of the principal.
TAXATION
(4) Import of services by a person from a related person or from any of his
other establishments outside India, in the course/furtherance of
business
In case where the services are imported for a consideration, whether or not
in the course or furtherance of business, such activity is treated as supply.
(b) (i) Registration Certificate granted to Non-Resident Taxable Person and
Casual Taxable Person will be valid for:
(i) Period specified in the registration application, or
(ii) 90 days from the effective date of registration**
whichever is earlier.
**The 90 days period can be extended by a further period not
exceeding 90 days on sufficient cause being shown by the said taxable
person.
(ii) List of deficiencies in the erstwhile value-added taxation which led to
evolution of GST:
a. Certain transactions were being double taxed as both goods and
services due to unclear distinction between goods and services.
b. There was cascading of taxes because CENVAT excluded value
addition in distribution stage and in the State-level VAT, CENVAT
load on the goods was not removed.
c. Credit of CENVAT and State-Level VAT could not be set-off
against each other.
d. For a single transaction, multiple taxes in multiple forms were
required to be paid. Several State taxes like Luxury Tax,
Entertainment Tax, etc. were not subsumed in the VAT.
e. State-level VAT and service tax were not integrated, thereby
causing tax cascading.
f. CST, being non-VATable, caused tax cascading. Being origin-
based, it violated the consumption tax principles.
(b) Alternative
Situations where a tax invoice can be issued after delivery of goods are as
follows:
(1) Supply of liquid gas where the quantity at the time of removal from
the place of business of the supplier is not known
(2) Transportation of goods for reasons other than by way of supply
(3) Such other supplies as may be notified by the Board
Where the goods are being transported in a semi knocked down or
completely knocked down condition or in batches or lots:
(a) Supplier shall issue the complete invoice before dispatch of the first
consignment
(b) Supplier shall issue a delivery challan for each of the subsequent
consignments, giving reference of the invoice.
(c) Copies of the corresponding delivery challan shall accompany each
consignment along with a duly certified copy of the invoice.
(d) Original copy of the invoice shall be sent along with the last
consignment.