Examine the following independent transactions/activities in accordance with the provisions contained under in the CGST Act, 2017 and state in brief whether the same constitute "Supply" under the said Act: (i) Arya Pvt.
CS Professional · Advanced Tax Laws and Practice · PYQS · June 2019
Examine the following independent transactions/activities in accordance with the provisions contained under in the CGST Act, 2017 and state in brief whether the same constitute "Supply" under the said Act: (i) Arya Pvt. Ltd. entered into a hire purchase agreement for ₹20 lakhs with Anu Machines Pvt. Ltd. for supply of a heavy duty machine unit.
Answer & Explanation:
Hire purchase involves transfer of title in goods under an agreement which stipulates that property in goods shall pass at a future date upon payment of full consideration, as per schedule II read with section 7 of CGST Act, 2017 and thus be classified as supply of goods.
Topics: CGST Act, 2017
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