Under the current indirect tax structure, the taxable event differs for
each type of tax. The taxable events under the current indirect tax
structure are captured below:
Type
of Tax
|
Taxable
Event
|
Central
Excise
|
Removal
of excisable goods
|
VAT
|
On
sale of goods
|
Service
Tax
|
Provision
of taxable services
|
The
taxable event under GST is the Supply of Goods and/Services. All taxes
such as Central Excise, Service Tax and VAT/CST will be subsumed under GST, and
the concept of manufacture of goods, sale of goods, and provision of services
would no longer be relevant.
Thus,
for every business, it is crucial to understand the relevance of supply which
sets the scope of transactions liable for the levy of GST.
Relevance
of Supply under GST
