Sec 2(108) – Taxable Supply

Definition of Taxable Supply covers Goods as well as services. Even supply of taxable goods and taxable services (eg works contract, where there is a supply of goods as well as supply) is treated a Taxable Supply.

The words ‘chargeable’ and ‘leviable’ do not mean the same.

• Leviable is where the ingredients for an imposition of GST are attracted.
• Chargeable is where the assessment of the impost results in zero rupees is payable for reasons of exemption from payment of the tax levied.

Related Definitions:

• “exempt supply” means supply of any goods or services or both which attracts nil rate of tax or which may be wholly exempt from tax under section 11, or under section 6 of the Integrated Goods and Services Tax Act, and includes non-taxable supply. [Sec 2(47)]
• “non-taxable supply” means a supply of goods or services or both which is not leviable to tax under this Act or under the Integrated Goods and Services Tax Act. [Sec 2(78)]
• “output tax” in relation to a taxable person, means the tax chargeable under this Act on taxable supply of goods or services or both made by him or by his agent but excludes tax payable by him on reverse charge basis. [Sec 2(82)]

Valuation of Taxable Supply is covered in Section 15