The GST is a destination/consumption based tax system in which the tax is levied during the supply of the taxable goods and/or services. Now, the type of supply decides a lot of things in GST, including whether the supply is taxable or not, the rate of GST, etc.
Definition of Supply Under GST
In order to understand the rules and definition of supply GST act, we must first know what a supply is. A ‘Supply’ refers to the purchase, import, sale, exchange, transfer, rental, barter, license, lease or disposal of goods and/or services made by a person through his/her business.