Lec 02-B | Ch 01 GST Supply | New IDT EO Batch 2025 Exams| CA CS CMA Final Paper 5&6 | VB Sir

0:06 Hello friends let's start this So what did we see in the last session? In the last session we saw yes here Concept of Supply Section Seven Ka So Friends, let me tell you that the government what is the object of the government The object is to convey that we are in supply What do you want to include and this The definition is given as an inclusive definition, therefore Watt supply starts with one word Includes But yes there can be some such activity that It should fall under the definition of goods and services Because the definition of service is very wide It is in scope, if you know then service that definition means okay here it said is anything other than goods i.e. any type of contract should be ok which is in business If it is happening then it will be considered as service

0:51 Bhai sahib, is there anyone like this in service here? There is not only limited scope but also open ended scope it means it is unended I will say that brother here If there is scope, then in such a case the government should do something If the activity was to be kept outside the supply The government made a list and the government said we make schedule three and If you read the text of section 72 then The government has said not withstanding to a what ever could in section 71 71 something might have been said but if we said 72 in which activity supply was not quoted if it goes then it will not be said so this is what This is the clause, you will have to write it here then you can write not withstanding not Withstanding

1:36 To section 71 means OK 72 will overwrite and 72 will overwrite and whatever is in it Activities we will exclude above Yes, if GST does not come then it is a good thing that the government here is something Activity Excluding Hum Step You will see all the points step by step below Schedule Three Firstly some supplies which What is supply includes its three clauses Clause A Clause AA below which we have given After that there is clause B of section 71 Let's see some more in Be With Consideration Activities where Government imposes GST wants to invest even in two transactions There will be no consideration, we will call it general In practice it is called free supply

2:23 If you have free supply, you have any Some cases are not getting consideration or in such a case that GST should be imposed I want you to do it step by step, we will see further First of all, one ok your client your he is sitting in front of me and he is asking me Whether the activity will come under GST or not So the main concept on which the whole GST is based, it depends on this and that Then we discuss small things will it remain ok 71 c schedule one He says what else accident happens then let's go When will GST be imposed on you in the broad sense So here they say the first message is The government has given this that brother all Forms of Supply Any type of form I you supply goods or any You supply the services in the form of If you do, it will be covered under GST

3:11 ok no doubt that is the form you should have This will be based on some basic conditions. ok you can use any form which you have filled Something must have been supplied in the form He suggested examples such as cell Transfer Water Exchange License Rental Lease or disposal ok if or in addition There will be other forms which in the course of If business is okay then GST will be imposed But here while reading 71a as your client It is in front of you and while saying 71a, some of his You also have to keep these things in mind while giving advice What are the things you need to keep in mind while The main object of imposing GST is that If there will be consideration in any form GST will be levied only if money is received

3:58 okay and in the course of further business then Let us go here step by step Our regular math will start the discussion Yes, we have defined the goods and services I had a look at the chart base a little bit, okay so Now come to our regular mat Section Seven in Pay Ya Re Regular Mat were here and I'm telling you that the page put the breaker and the page breaker which is where we Shift from regular mat to chart Put a page breaker there so yes definitely You will benefit from looking at the page number again and again there won't be any need but friends I this is what I'm taking regular math charts and questioner okay this is such an effective way that Definitely it will be very helpful to you and

4:43 All the concepts got connected ok so here look at section 71a so let's go step by Let's see the steps here 71C structure we have eaten it ok after that i will go ahead now If you are three then son I will come later I will read it to you, it is not important, okay then Now come forward here, let's go a little Let's start the analysis, meaning and Scope of Supply OK Here Section Seven If you go to the next page then this Supplies included for consideration The activity is to keep the chart by your side and Viewing Mappings in OK All Form an Analysis I told you that in the analysis your The first one would be all forms of supply, okay, like Example: Cell transfer battery action Lease Rental Disposal Made and To Be Made For

5:30 consideration in the course of business and the We have to read every line here. at first i won't pay attention to you ok Definition of goods and services chart side put in the ok definition of goods and If you look at services then you will see that Our definition is complete, the chart is this much It's good that your mapping will be done OK. means every kind of movable property other Than Money and Securities and Include Actionable Claims Growing Crop Grass things attach to and form a part of lands which are agreed to be sown before Supply and under the contract of supply What did I write in the chart in short Diya Growing Crops And Extra Yes If you want to write this next part then you can You can write OK but yes actionable Clem had already spoken and if

6:15 Growing crops will become grass and weather will become Forming a part of land is not ok if An agriculturist sells growing crops if it is then that will also be considered as goods ok goods If it is considered then what are its basic features ok basic feature underline kar lo movable Property, money and securities excluded it will be ok after that specifically Includes actionable claims and goings-on Crops and grasses these specifically include We saw this will be done on the basis of the chart tha okay so better way definition of goods For this you can also read the direct chart more then enough okay and listen carefully what I am saying Priority A Priority B and Priority I am keeping C which means B is reasonable It is good to study, focus more on A yes ok we have to stay alert and give priority to Even if I read it casually and left it It'll do okay so this is what we have

7:03 Important elements of the goods were seen Now let's move on to the definition of OK service on definition if you are on definition of service If you come then anything other than goods this box Karna Money and Securities Excluded will go yes includes includes he says There are separate consideration charges and separate Whose use of money is the consideration charge? Conversion of cash or by any other mode from One form of currency and denomination to another Form of currency and denomination simple word in conversion of currency which has separate Consideration charged or securities to Facilitating and arranging the transactions in Securities if its separate consideration If charged then that too as per the definition of service will come in and we saw in the chart that yes

7:48 use of money ka only use of money ka The interest is whatever the interest is here GST is empty at present, interest is a service but amted yes only interest on Loan a bamboos and deposit were given a boost Okay, so let's look at the analysis. anything everything it income passes all Activities and Transactions That Are Category as a Goods Money and Security Meaning that is not a category as a goods It will be included specifically in all activities Includes use and conversion of money Activities involving separate consideration charges done ok security is ok with me keep highlighting ok main main point Go and then click on the security button. Yes, I was excluded from security related to facilitate and arranging ie

8:34 Brokerage becomes Portfolio Management If there are charges, these will be included ok ultimately i will just say this theri This is for you to read: OK I am the main main I am emphasizing on the points but our the chart is ok that chart is more than enough goods and services go here if you you come forward Meaning of sorry meaning of money diya hai what do you mean by money now what is this Important as per the definition exam no, we won't ask in the exam but we so if you are studying law then yes if you are studying law Now look at where the exclusion happens The government does not pay tax there There is consciousness because the government If she is not levying tax on that activity

9:20 It is very important to give its clear definition So what does money mean because transactions in Money or transactions in securities If it is excluded then money means ok Indian legal tenders i.e. your 500 rupee note note 100 key note 200 key note ok of any Foreign currency ok Indian legal tender of Any foreign currency is ok, that too will come in money cheque promissory note bill of exchange letter of credit draft pay order traveller's cheque Money Order Postal Electronic Remittance OK or any other instrument recognize Bye RBI this transaction money de kahe You will go, which means you gave a cheque to someone Promissory note given Bill of exchange given Gave letter of credit and placed order on draw Even then these transactions will be called in money OK and there is no GST on this activity will come ok at last write one line inside the

10:07 instrument recognized by RBI to You may have a question that Sir Bitcoin If I make a payment in bitcoin Buy bitcoin, sell bitcoin, then such case Will that money be considered bitcoin money? So, why will it not be accepted? Because RBI has recognized bitcoin I haven't done it so I don't accept the money It will go okay now that I have given one line here what he and she have given but shall not Include any currency that is held for it Num mystic value ok means what any The old currency will be ok if you know If in India ever a grandfather is replaced by great grandfather You must have heard that earlier one used to be available with a Khadaku One paisa was given which was called khadku In childhood the money used to be 5 paisa and 10 paisa Have you ever seen 10 paisa? You must have seen it. So now today that currency has been discontinued but

10:53 Its num mystic value is that if If you find the old Ashoka Iraqi currency Its value is in lakhs ok some copper Coins found are 2000 years old Its value is in lakhs, so today that currency I don't have it oh understand I have a very old one A coin of Ashoka's era is lying and I am selling it for 10 crores GST will come on top of it because it's not A currency that has a certain mystical value hey i hope you understand then he says it clearly that it will not come under the definition of money which has some nim mystic value okay so Coins like Collection of Study Money and Coins In a particular Ashoka's era coins are ok or old coins old coins ok example If you want to write then you can write, okay, but keep in As per Priority C Exam

11:40 square more emfs need to be sized no, just read it once datchi we are studying because the bank Transactions of Financial Institution The transactions are mostly in money So like a loan is given for use or If conversion is being done then it If the transaction is in money then there What are the implications of banking and In the financial sector, yes, ok, something We read the points which are your covered in the Institute's material and If there is any important point among these then I will tell you what is in Priority A. first of all if we look at Financial Services by Bank and

12:25 Institution yes okay that's why we are looking into it connected to the banking sector and money and We have given the definition of goods or services It is said in the definition that money is excluded okay so it goes here many times Bank allows you to use the money like lending borong you can underline it ok Financial Services Lending Borong and Investment activity offer use for various financial instrument ok to what if i gave a loan to someone ok if I have booked from some ok bank or you did braving you did braving you and If the transaction is for money, then what is the amount on it Will GST come then the answer is no, why He will not come because son is here From the definition of goods and services, money and Securities which are excluded Transactions Explicitly Excluded

13:11 and exclusive money and use of If it is of money or conversion of money then GST will not be applicable on it but it is being considered Money transactions will be excluded sir I will clarify it a little more for you I gave you ₹10,000 and you returned ₹1,000,000 These transactions are of exclusive money Ok, GS will not come on this but be careful which is charged with separate consideration If there is any extra charge then The service will be called OK Now Instrument included in money now this point is ok What all comes in money, so if you check Transact with Draft Pay Orders Promissory Note Letter of Credit to Money I will say yes now keep this In Priority A, as per the exam You have to remember that commercial paper and Certificate of Deposit Sir why are you saying this

13:57 you are going to remember that because friends one Bar with the Agman on banking sector Because banking sector has an edge ahead Once a question was asked with MPN and banking sector transactions were given In which it was said that the sale of commercial Papers for sale of certificate of deposits Bank's Commercial Papers and Certificates of These transactions are called deposits in money. it's ok because this is a type of promissory There is a note and this transaction is called in money in such a case, go to here above it GST will not come so when you face problem If you solve it then what will be your note The note would be that commercial paper or Certificate of Deposits in Transactions in money is ok like a promise note its GST will not be applicable on this, ok draft or letter of credit yes draft b tranj ok letter of credit a like wise not considered as

14:44 Supply how ever additional element of Taxability Present Separate Consideration If this charge is there then GST will be applied separately now Consideration charge means what should I understand if If I make a question on this concept then How will the question be made like I have studied banking I wrote down the sector transactions loan given ok loan given bank gave 300 crore If you give a loan of Rs. then transaction in money is ok Bank charged interest on loan Come on Bank earned interest from loan interest answer Will there be any interest service, listen to the answer Will there be interest service but it is mte The loan interest is currently 10% Accept OK Interest on Credit Card Now I will tell you a if in the same transaction If I create a query then it will be done in the same transaction I will give you a concept that sale of Commercial Pay or Certificate of Deposit

15:30 If you do not write it, it will not be taxable The transaction will be called in the money but on This sale fee charge Processing fee charge Commission charge: Yes, there will be separate consideration ok so then GST will be applicable on it only Gave importance to the interest and not to anyone else I have given it, I hope you have understood this point, done dun dun dun so this is commercial paper or We introduced this concept of Certificate of Deposit Let's see, I have given an analysis below. ok the analysis is given, if you want to read it then ok Please read this brother, Transaction in Money What is deposit and withdrawal of money from bank borong and repayment of loan ok So this transaction is in money and in What is the relation to money, then applying interest Charging processing fee is your loan that relay applies its processing fee If it is related to money then yes, this is a service

16:17 But the interest is currently empty only Your interest is empty, write it here If there is processing fee etc. then it is taxable There will be activity for conversion of money Commission charged by converting Rupees to Coin If commission is taken then GST will be charged OK Dollar would have been converted into two rupees and its If commission is taken then GST is levied on it let's go okay now now look i'll show you this I say that you must understand this concept very well I have taught every concept well in this batch I am not going to leave any concept, okay You will understand every concept of every paragraph of the book But if your approach is such that I I don't have to memorize line by line regularly If you want to remember maths then don't study like this it won't help you at all then What you have to do is to understand the concept Have to take more and more practice

17:03 I have to answer the questioner, okay, session is over You have to attack the questioner as soon as he appears I will tell you one thing: take responsibility for yourself. Take responsibility for yourself, it is very important in life It will help because you are doing it for yourself. If you're not doing it for anyone else then It will help you a lot and you will be successful in life Go ahead and learn to take responsibility I am giving conceptual clarity here yes but after this comes the question You must discuss it, okay I will tell you I will also discuss this important question I will do it but with our question air you will Try it yourself, take a lot of responsibility If it helps then let's go, we have seen this Regarding transaction in money now The next concept is securities Sir what is the definition of securities because I have to be conscious about my clients Transactions of securities will be visible He is showing the sale purchase transactions.

17:49 Those investments are in its balance sheet Is it visible or Voke Business in PGBP he is telling and he is telling the business so he He is asking, Sir, should I buy security? I sell securities, is it GST will be applicable on it, answer is no securities Excluded from the definition of goods and Services so there is no GST on it Do you understand that GST will not be levied on you? ok so what do they call securities means Is SCR A a securities act? Contract Regulation Act 1956 which He has given the definition of securities Securities will be covered in that now sir So should I tell you in simple words? Shares Stocks Bonds OK Derivatives Contract is ok, all these securities are considered will go And above this there is no GST on OK sale purchase It will come but for sale purchase if separate Consideration charged like a brokerage

18:36 Portfolio management fees or any other fees If someone charges then it will be considered as service And the broker will charge GST on it, so let's go We saw this in securities contracts Derivatives Regulation Act thereafter End GST Liability Sur Derivatives What is the impact of the contract? I am a The client is ok in the share market The poor guy keeps doing BSc NSC business stays there all day long stays there all day long along with that the share rates are moving If they keep going then sir tell me that they It also deals in derivatives What will be the impact of GST OK GST what impact did it have so let me see a little I would like to explain to you that derivatives First of all let me tell you the contract that the derivative contract is ok shall be deemed to be a security contract I am covered in security in the book which I underline box here

19:23 I am making rounds I want it in your book Because there is a psychology, son, and further There is also a very effective study because of it The more you underline and highlight Next time there would be a psychology of mind that he thinks he is educated, educated If it is there then a different confidence level comes And when it appears blank, it seems that it is lying If it has not happened then the confidence level is very high there it gets separated so I tell you this I would suggest that yes, as much as possible here Keep highlighting with me and important points here ok highlight that box or just keep underlining okay so in short I would like to tell you that derivatives The contract is also considered a security contract shall be and neither shall be considered as a good nor Services and not subject to what son GST will not be imposed on it, ok Let us take some examples like

20:10 If you have read the material from our institute If you look at some contracts for example I took it and explained it very well first of all let's take forward contract ok sorry future contract ok now future Contract ok this is a proper organization There is also a forward contract The same happens but So your subject is Financial Management If you have done it then you will know about it no need to teach it is very good You have done FM at the intermediate level also. And also at the final level, so now friends here But let me tell you about futures contract If we talk about futures contract then Future Contract: Those people who are currently in India They are doing business of shares in this Are future contracts bonds okay? There aren't that many at the moment, but yes Futures contract in commodity market which are organized and which exchange

20:56 If it is there then now it is for other currencies too If there are future contracts then now such cases Let me tell you that if your There is no settlement in futures contracts Meaning whatever increase or decrease you make is the call option Put option or future contract is more or less If it happened that it was settled by giving margin then You settled it by giving margin ok particular asset at a pre determined Price on a specific date in future meaning Future contract means any specific It is an asset that you will trade on in the future Pre-determined rate will be whatever the rate is then ok that rate is not today's rate but in future If you do a transaction then that contract will be finalised if we talk If you do so, it is considered a derivative contract goes away if you just settle down OK is considered a derivative contract and GST is not applicable on that, ok be careful

21:42 See, GST is not applicable on it. But how ever this is not important is how Ever if settlement of contract takes place by way of actual delivery of underlying Commodity You work in the commodity market You are here and not talking about commodity shares I am here because the shares are for goods is excluded from the definition hence actual If you settle the shares then that will be is covered by securities but if A futures contract has been entered into and Commodity is settling oil futures Crude oil futures contracted contracted ok sugar or any pulses or Grain or what ever it may be your commodity futures contracts were made and you You did not settle the goods by paying margin If you settle it after giving delivery then here again Here our government says and The interpretation comes that now he The actual sale of derivatives is not saved

22:28 Goods is ok because it has commodity in it If the settlement is done then the commodity If the settlement is done then again there GST will come if you just want derivatives You do it in the form and settle it by giving margin If yes then GST will not be applicable on it We looked at the futures contract same for Any difference between the two forward contracts So it's not okay it's just that the future Contract is organised ok Carryout is forward on exchange The contract is between two individual entities ok so forward contract also Derivative contract is not liable to GST but in this if the actual commodity that the delivery is getting settled okay so then that GST will come in case next if we Let's talk about secure data, it is secure Understand what is dept, it is a bank and s The bank has a secure deposit in which After Property Mortgage Hay Bank

23:15 Secured dept in which property Now this property is mortgaged 300 sorry 3000 crores secure debt is there Now if s bank wants to transfer the money in cash then you If you have read FMS Secured Ignition then What we would do is pledge the loan That brother please give me the money, this loan is secured Brother, if it is worth 3000 crores then we need 2800 crores. Give crores, ok 2800 crores, give 3000. Secure deputy of crores take the money from us If you open it, then ok, the secure department here make a sale make a purchase assign So this is Collet Security in which it is ok sale purchase assignment or not Liable to GST because this too These are considered securities transactions In Simple Word FM you have a concept You must have read about security exemption then is considered a security contract and GST is not applicable on it, it is a little

24:02 Read it carefully and give it priority A keep it ok sometimes in one or two mark mcq Or while solving any problem you may Adjustment may come and now is the last Transaction in Instrument Swap Transaction OK Swap Transaction Foreign Swap transactions are conducted on exchanges Interest swap transactions are I will not teach you because it will It must have already happened in FM or it is already in FM will go ok portfolio management topic There are sp transactions in it, ok so like this In case friends if the swap of interest Is there a transaction or is it foreign? Swap transactions of the exchange are Foreign Exchange Swaps of Interest If there is a transaction, then that too is considered a security and GST is not applicable on it so this is what we have seen regarding Swap transaction here ok so like this

24:47 Certain derivatives from forward contracts Special discussion on contract was done, ok forward contract future contract ok View more transactions in instruments now I say this because now you have You have to make efforts and what I am telling you now I am going to say that it is very important now I have not taken this in the chart book, ok If you look at the chart book, you will find that you have not taken this. Then what will you do after today's session what responsibility will you take ok so here what to do ok put a sticky note Or staple a paper here A staple is placed on the side above the definition give and that whatever derivatives are there on the paper Its a forward contract Make a summary and post it here Goods And your services are very good, ok That means all those points that I I have given it in regular maths and I Make it important and make a summary of it and

25:33 Attach the staking here by placing staples Attach notes by clicking on Sticky Notes It comes out, put paper in the better and attach it. If you give it to me it will look better, I'll see Son, you should see such hard work, this is my there is a questioner and I myself even today I read my 25 years of experience It's been happening while I'm reading, even today, ok If I study then what is the important point in this look it is stapled together What are the important points I have mentioned What Summary Points Should I Remember ok this is in the questioner as well and this While reading the question, what are the things you think about? I should take care critical where is the adjustment what is the alert ok this I cover everything and my Chart books are also stapled in a similar way If it happens then your book should look like this Like this, it is stapled and okay, that is, it is filled The book should be visible, it is called real If you study like this then all these points

26:18 Attach it here and I will give you a suggestion to do. It will be of great help. Give me this. I have done GST. I have given you a chart book, it has a chart for every chapter After one page you can go to some rock person go and add a page of this size to it Go through a page or two after every chapter Keep adding whatever you feel is right. Why add it? okay here the reason is that if you If you need any small charts later, You have to make that real self study which you need to make small charts or you Here are some important points covered If you want to do it then cover it in this chart book Take this chart book of yours, such a master There should be a chart book where everything is covered ok for revision because best what is the planning son one day one month before examination and I would like to tell you this

27:06 ok don't be in a hurry brother just saw it It was done quickly, okay at least something Give time to absorb the subject Because this is a scoring subject IDT It is really a scoring subject, it is bigger than you What mistake happens that marks It takes a lot of strength to take it You give more time and get marks in it If you study well reasonably well then Ignore the one in which you get good marks You can do it, you gave me time for DT, right? OK For DT you more than double the time You give me more than double the time than IDT You give me marks and ultimately a lot of power I am looking forward to meeting you in IDT The mistake that happens is that Marx The institute is ready to give but You did not study the concept well If it is not absorbed properly then yes My strong suggestion is what to do about this

27:53 this chart book which is this chart book both chart book ok spiral mind kar lo and beech Post these pages, you will enjoy it a lot you will remember me during revision I won't regret at all what Sir did You got it done really well, right? Do ok in promise, a teacher is telling you and I understand that you studied how should taxes be done ok many students Sometimes you teach me that you How should one teach? Hey that's fine friend, okay We will fulfil your requirement You are not saying but tell me that you how should one study let's go here ok Let's move on, okay, so this is something we talked about Saw another analysis here we did an analysis, okay who all Transactions shall be termed as securities Now there are two circulars in this and those two circulars

28:39 We have to read here now see what happened Why did the circular come? What is the message from it today? There will be a circular son come because some I was getting confused about the law so I read the chart put it in front i will tell you okay law so I have read it, but now after studying the law, I don't understand it Its impact is visible in GST How will you come if you are getting very confused CBI gave its instruction to the department that in this way should be interpreted and this circular should be given to us also are beneficial because we helps with interpretation Because the department is at its base There is no doubt that we will take action through this circular If you do not agree then we will file a re-petition I can go against you but Only tax payers can go to the department P this is circular binding let's move ahead Let's talk about what the circular was, a word comes Lending of Securities

29:25 Lending scheme is a scheme of SEBI Securities lending scheme okayed yet no It does not use derivatives much after the contract came but yes even today this The scheme is now applicable to these securities Understand what is a lending scheme, take an example Let's take it Amar, ok one of you The student is named Amar and this one He is immortal, ok he has just become a young man and here in the security market I want to enter trading in BSC wants to do and right now what I have is friend I because I buy it so I I don't sell it and this is a very good habit And I've been doing this since I was a CO. I made a small investment here But I never sold it and you should too Do a good company for long term

30:10 Invest a little bit monthly Invest four or 55000 ok but Long term brother, you won't see it in 15 years Come on, that is not our topic of discussion But when he comes then this Amar feels that he is ok brother the stock market was about to rise now So the stock market had fallen a lot now will grow and he wants to do business and wants to do it in bulk but the guy has there is no money, he came to know that Vishal Sir's Vishal sir had money reliance1 Shares are lying, for example, ok 10000 If there are shares then it came to me sir sir Sir you have 10000 shares I said yes ok sir please pick me up I want to know what shares are bought from you yes it is ok then you have to bear it with me lend me securities lend me ok Do this business in your demat account I will do it for six months and return your shares. I will give it to you, said come on, trust me in Amar

30:57 I said okay, a form will come CB's lending form comes, I give it to him I will lend the securities and my demat Transfer from the account to his/her Demat account Shares will be sold through securities lending under the scheme and then again for five to six months He will do business and earn money, what is my benefit He used some of my securities for days so my advantage is that he he will pay me his fees he will pay me his fees So then the question came up, if I I lend securities to someone else I take its fee and lend it for some period if he does it and takes the fee for it then will he Transactions will be treated as securities And is it excluded from goods and services? and will GST not be applicable on that fee Understand that I have earned five lakh rupees as fees. By lending securities then securities can be loaned I earned Rs 5 lakh by doing this so what is its

31:42 GST will not be imposed, so the question is good I would like to tell you this okay I would like to tell you I would like to tell you that the government says that Look if you do securities lending So giving securities is this transaction in Securities are being issued to facilitate the transaction and arranging the transactions in securities whose fee was taken ok whose fee was taken it is a service so interpretation it came that the activity of landing of Securities would be treated as a supply of Service by the lender and its fees GST will be levied on the fees charged for that supply shall be deemed to be a supply of services And whatever fee is charged, that fee will be GST will be applicable on the charge, this was security A circular related to the lending scheme was done dun dun dun let's move on

32:33 OK next comes taxability of shares Capital Hen Subsidiary Company by Parent company ok to weather the activity of Holding of shares by holding company of Subsidiary company will be treated as a supply of service and supply of service are not end whether the same will attract the GST or not There was a clear clarification, understand the holding The company holds shares of Securities Company If so, the holding company has If you hold the shares of the company then such cases There are securities transactions in and shares other treated as goods or services to Purchase and sale of shares not a supply Supply is not considered ok no i inerent service in holding share holding share of subsidy company buy holding company buy it Self does not constitute a provision of service and can't be contentedly okay so

33:20 Consequentially Act of Holding Company Holding shares of subsidy company cannot Be regarded as a supply of service ok That will not be considered as supply of service Is it really worth clarifying in this? There was nothing but okay some industry This question might have come to CBI and CBI said no, no holding company Which is holding shares in subsidiary ok that is transaction in securities GST will not be applicable on it If GST is not coming then let us do it this way Activity on Goods and Services see now let's go ok let's take one thing at a time if you get into the charts ho if you come in the chart then section of intake If you come to the chart, then the section is of Sen We will now see the parts one by one, the first truth is S truth Sale Transfer Water Exchange License Rental

34:06 lease and disposal ok so yes regular mat come back in If you see this, I'll tell you one thing I would like to tell you and I would like to tell you this that this is an example of cell transfer battery Exchange License Lease Rental Disposal is not defined in the Act and it is for casual reading see ok hai casual Reading is ok because there is no question on it I will not ask but your conceptual essential for understanding All the words you used are better Nothing has been defined about action in GST The government said what is the point in defining So we have already used the word all forms all forms come in all forms I went and all the forms came in all forms, so this So for example, by defining this we Why go into complications because if If we have defined it in the act then that case

34:51 what will happen in that case then We will start cases on definition only There is no need to define the general meaning which take what is and general meaning take what is So in such a case, all of us here GST will be levied on the form, this is just an example So this is just the dictionary meaning I gave you Ownership is explained in Sale Sale it will go to transfer yes in transfer ok where Brother what is the contact for transfer, that means what do you want to say, does it mean you bought some goods Gave it, transferred it, gave it a position Ownership not given i.e. Hire Purchase HP OK That means HP transactions are higher Purchases where you are giving up ownership position You are not giving that also, there is supply on that also GST will come ok sir but no sale was made Who said GST comes on sale whatever in the form you supplied whose

35:37 Give it some consideration and remove it from your mind that GST is applicable on the sale in whatever form Whether you have made the supply, ownership goes or not And you receive the consideration GST is payable So if you did the transfer without Ownership Ownership Last Installment Paying ho in higher purchase then higher purchase transaction shall also be treated as a supply and its GST will also come but okay understand that your car has a business of and another is a car dealer You have four cars and he has two different cars There are models lying around, you have spoiled them, look brother You take this or give that then it will be better Both in the course of the transaction If you are doing business, it means you are also in the course You are doing business and that too in the course of doing business if both in the course of If you are doing business then both are one in the same Who will impose GST? I gave him four cars I will impose GST on those two cars, give them new models

36:24 Giving me a good premium model of car If yes then they will charge me GST and Ekam will also get the credit it will be a B2 It is called B water, it is called B2B water yes now there is a problem that beats each other now Understand the meaning of Bit2Batter I have a jewelry shop and I have a lady She came and brought her old jewellery She gave me her old jewellery and I When I gave you my new jewellery, now look at two people There is a bitu s bar in between Bitu s Meaning the new jewellery given by the jeweller The jewelers did not charge any extra money The new jewellery that was given is ok GST will come because that is in the course of This is a business, he is doing new business He is giving jewelry, ok, GST will be applicable on it What will be the value? We will see later. On what value will we impose GST going forward

37:09 we will see ok but son tell me this here I can tell you that there is business for a jeweler but Now the lady gave me her old jewellery too Battered against old jewellery If you buy new jewellery, look at it from a lady's angle Ok, so won't GST be applicable on that as well? because his transaction is in the course of Business is not okay in the course of business No, so GST will not be applicable on it Because he is against old jewellery I got some new jewellery but it won't work If GST comes on jewelers then if your The transaction is B to B better means both If you are doing business then both will apply GST Both will give invoice to each other and both We will also take credit on Ekam's invoice We will take the credit as well, now you have a little doubt here it can come so ok don't apply the hand brake remember my story don't apply the hand brake If you choose the flow then slowly slowly slowly Write down your doubts and leave them slowly

37:55 If you move forward you will understand it, okay One Sided Beetroot in B2C Butter GST is applicable on butter only on one side GST will be applicable on B2B butter at both places After that sir this B to B B to C what is happening brother are you doing this batch I don't know, let me tell you, B to B means Business to Business and B to C means Business to customer then exchange and what is the difference between the battery and the battery which it is kind to kind, there is money in it It does not evolve brother, buy four cars Give me the car, ok this is new jewelry or old jewelry ok there is no money in it No transaction, little money in exchange Transactions evolve partly into money It comes in partly money meaning Consider this as my mobile shop, you have come here ok in my shop what do you want brother so you

38:41 He said that I have an old mobile phone I want to buy a new mobile I want to buy it I said okay so here it is for 70000 then Tell me your old mobile number I told him that the mobile is available for Rs 20,000 If you don't get much then let's take 20,000 which is there and I have given you a new i, okay now near me

39:27 Pay I Repeat The Word Total Value Pay GST Looks and rules on valuation edge ok there is rule on age i will tell you later How is valuation done in water exchange and how GST is levied now The entire focus is on supply now that the exchange Transactions will also be called supply, yes I will supply you a new mobile okay and you gave me an old mobile Ok, so the mobile one is GST He will invest but you will not invest the Rs 20,000 you have I sold my old mobile, you won't do it Because you do not have any business activity But if the exchange takes place in B to B So like I said in the exchange In me also both the bills were charged at the same time, ok Saw the exchange transaction here License okay so if I did the licensing then that It is a service, meaning you are given rights to use it OK for or Occupation and Any Activity

40:16 Otherwise, giving licenses would be unlawful licenses to use the software That cover will be lease transaction service cover Rental transaction service will be covered Disposal ok now there are a lot of disposals Word that brother the asset has been disposed of, take care GST will be applicable on the asset if it is disposed of ok waste by product we disposed GST will be applicable on that as well and remember one more thing GST is to be kept on goods GST is to be kept on goods means any kind of movable property It is not written that GST will be applicable on finished products GST is coming on goods now Why shouldn't the goods be your asset? I have told you this Camera This camera is my asset and I have sold it You will have to pay GST on this as well Computer laptop is an asset Machinery is an asset TV is an asset, it is a ok goods and it is movable No, you will not have to pay GST on this as well, OK Waste

41:03 it is a by product, I am disposing it We will have to pay GST, it's a matter of day after tomorrow I mean, a few days ago, I I sold the benches, now the benches were my asset ok but he also sold the asset it's a good thing If you have to pay GST on top then don't Confinement If you do this then GST will be applicable on it, ok Consideration was given in the course of business Then GST will be applicable on it, I hope you Understood what I am saying ok done done done let's done this If we look at the first part of the chart I am done with remembering definitions etc. No need but yes ok first on the chart

41:49 Part finished Cell Transfer Batter Exchange License Rental Lease and Disposal Now comes the second one, Made and Agree to be Made This concept of Made and Agree to be Made The understanding here so yes what does maid and agree to be maid mean OK Made means here you have supplied first did you also buy goods or service Supplied and payment came later Payment received Payment received later Meaning first made, supply made and payment later I came in so no doubt as soon as you supplied

42:36 Will GST come, yes there is no doubt about it So we will bear the pain but GST will come on supply it will be ok agree to be made what does it mean Generally agreeing to be made means you have to agree to advance advance payment received received and later you supplied and What you supplied later may be goods of or service so what is the question now Yes, you must have supplied the goods It would have been delivered, the service would have been provided So here you will pay this to the government by GST I understand it, but if you I got the advance, okay, so when I got the advance If you have received advance payment then what is the advance payment? But GST comes, what is the question, advance payment

43:22 If GST is coming then the government would say yes that if you agree then ok also GST will come and to the extent of You will have to pay that advance as GST Discuss in more detail during time of supply Now we will understand the concept in broad sense Then take this and I will elaborate it, okay So GST is received on advance, ok supply ok GST will come later but what happened ok agree to be made means you Agreement is made and advance is received I got the advance, it means you also agreed If you do it then GST will be applicable on that as well, right? GST Liability on Advance Amount Received Even two terms agree to be made GST e Levable on advance received by supplier of goods and services but following are the Amendments made by the government means

44:07 If seen in a broad sense, then if you If you get advance then GST is applicable but I will discuss it a little more and Learn this notification number three times say it to me three times say it to me Notification No. 66 BA 2017 once 66 BA 2017 and 66 ba 2017 ok this happened na Ekta Kapoor's girl sir where from Ekta Kapoor's girl Ekta Kapoor has come, have you seen Ekta Kapoor's If there is a serial then the camera focuses thrice it seems something is happening it seems something is happening If something is happening then let's go 66 ba 2017 now See what happened, why did you get this notification GST came on 1st July 2017 and GST The government has made its intention clear in I told you that if you get the advance then GST will be levied on this as well and in the same month Which will be charged to you in advance every month You will get the bill again anytime, give me the goods anytime

44:55 Also deliver the service anytime later Now if we look at the old law before GST let's explore a bit let's explore a bit I mean analyzing, okay so if you're here If you see the old law then we would talk first There were old laws regarding excise on goods and vat and he is still there today on some goodies Petroleum Products Alkalith is not vatted Yes Exercise and weight loss are only required if you maintain it And giving delivery of goods if any If someone gets advance then he never applies it From 1950 till now GST has been implemented Sorry GST was not implemented till 2017 Tax advance on delivery basis and

45:40 Tax was levied only on invoice basis, now it has become a disaster One night at 12:00 PM Modi rang the bell They give it on 1st July and say that GST will start from today It will be applicable and tax will be levied on the advance as well If we have to pay then the industry is totally against it Many people in the industry said that I will move ahead Have you gone mad on advance tax? Many times customer hum order secured Let's go tomorrow and cancel it will give or help our working capital What is the tax beyond this? The industry turned against us because it was a habit from 1950 onwards Till 2017, yes if we talk about services So when service tax was implemented in services from 1994 came ok service tax ok nothing more I was 202 years old when I came into service in 1994 If tax comes then advance tax will be paid from the first day

46:26 So the service sector did not have any problem The service sector said what is this to us We have this habit since the time we were born Since then we have been paying advance tax on goods The person was not used to the goods He was a manufacturer, he opposed it a lot did the trader oppose it strongly that the advance But GST should not be introduced in the service sector no did it ok now what happened is that 1st July GST came in 2017 and after four to five months It was Gujarat election, all of Gujarat The traders threatened, okay here Modiji to Arun Jaitleyji on advance Do not levy GST when the bill is generated Then Gujarat will lose, your nose will be cut, okay? I came to Central trusting your Gujarat hmm ok if it doesn't get cut then in such a case ok At last the government had to agree and

47:12 The government brought a notification OK Act I did not make any changes in the act even today agree to agree to supply means made and Agree to be made just by a notification Gave relief and said in the notification that it is okay If your supply will be supply of goods If it happens then you will have to pay tax on invoice basis only Will have to pay on advance basis not needed and he was suspended So when I move on to the Time of Supply chapter shall I teach or have you ever taken time off from intermediate You must have read the supply chapter well and my If you have read it then you will definitely remember it If you remember it along with the notification number, then it will say I clearly said 66 ba 2017 ok GST on advance payment of goods TS does not apply invoice basis for goods But it comes okay there are some exceptions to this I will read further but only when the invoice is made

47:59 GST will be imposed now if there is service then yes The government did not give any relief in service And whatever advance is due, then advance and invoice which ever is arlia ok according to tax it will be installed so this was it ok with this you What did you learn? You should learn that brother, pay in advance It is the intention of the government to levy tax Agree to be made is a clear word and you If you get advance then GST will be applicable but A temporary notice has been issued on 66th December 2017 And it has currently paid the advance for the OK goods GST is suspended ok but yes If you get service advance then on top of that GST will be applicable on any invoice and receipt alir i hope u understand done na done done Whether I came or not is not the point

48:48 Let us now move ahead with the meaning of consideration ok meaning of consideration now consideration that is, what Why are we focusing so much on this word? Why are you focusing on consideration Vad? Yes 71 which is the major sub clause for saying supply That is the soul of supply GST he says this 71 a he says this two minutes let's 7 7 a it says that if or in giving you any goods If I give you any Am I providing goods or a service? Like you're looking at me online

49:33 In recorded mode, in this transaction If I am getting consideration from you i.e. against this transaction if I am Getting something then and only then is GST Pebble On Vishal Bhattar OK And Vishal Bhattar Will GST be a burden to the government? If my transaction is free on pass on If there is no consideration in this then Fundamentally GST is not accepted Section 71C schedule is free No government regulation on transactions If you want GST then it is a business tax So this becomes a very important matter that whenever somebody supplies it then Whether the transaction has consideration or not Because there is GST on it so consideration Are you getting it or not getting it

50:19 Consideration Defined and Consideration What is considered in GST definition? Includes payment made or to be made weather Money and Other Wise OK Highlight Payment Made and to be made money and other wise in Connection with OK and in response to and for Induction of supply of goods or services One, what is clause A and what is clause B Monetary value of action ok consideration also covered monetary highlight karo monetary Value of any act and for benefits related to and in response to and induction of supply of goods and service is good Payment is from any recipient or anyone Exclusion from consideration from other persons What will not come under consideration if it is subsidy end deposits let's take a look at each word Let us understand this paragraph in a chart

51:05 I take it from the book and a little from the chart so look if you see the chart here You must be seeing it, ok blank space is visible It will be made and we agree to be made Done ok do one more thing here put a notification Two okay put a note here made below and Note notification below Agree to be made number 66 ba 2000 No GST on Advance Rish No GST on Advance received for advance received for SOG SOG If advance of Rs. 1000 is received then there is no GST It will come ok, no no GST on advance res

51:53 for SOG okay so this is what we saw made and agree to be made let's come down yes sorry come back here Consideration of section 231 consideration Definition If you see then write small end here Writing in relation to quickly in relation to the supply in relation to the The SOG and SOS in relation to supply of goods and

52:39 Services Included includes make to Part Clause A Clause B and in the middle and write the first clause Annie Payment Any Payment Made and to be Made any payment made or to be made red pen From do in

53:24 Money and Other in wise bracket some other Wise and here Write the Monetary value monetary value of any act and for berenice annie act and for in both Bering

54:11 say ne act and for [music] Biden in Respect of and in response Two and for inducement off for inducement Off The SOG and SOS OK SOG and SOS

54:56 Pay attention while writing, you end up writing many things Time will tell you, then I will explain I will concentrate fully while writing Two payment is Made Weather By Recipient and other wise and here Too Weather By

55:43 Recipient and others close it completely wise Consideration Exclude Consideration Exclude Exclude Write Consideration Exclude A

56:32 Write Subsidy by CG and SG and complete it attention and subsidy and the other is deposits Deposit okay so what do we consider If we exclude it from consideration Subsidies and We will exclude deposits here just Minute Just Minute Beta Deposit Concerning

57:19 Two SOG and SOS Unlaced Supplier Utilize Deposits Supplier Utilize Deposit S Considerations Consideration for

58:06 Supply a Consideration for Supply don s consideration for supply let s come here Section 231 Consideration: Now let us look at the matter You are not supplying anything, that means I told you Did I give you the goods or did I provide you the service? I gave you what I got from you you are talking about that, what did you meet since long So it will be called supply or you can call it like this If you get these things then There is consideration and if there is consideration then supply So now the goods I gave you in respect of that supply of goods and

58:52 services or in response to that supply of goods and services and for the inducement of that supply of goods and services came Received amount in money and other wise hey sir But you said that money is excluded We are not talking about what the supplier has What did he do and what did he get against him You will get money against him, son. Meaning, I provided the goods and I provided the service I gave it to you okay so now this is not going on The discussion about what we are getting is ongoing what is the consideration coming then in respect Talk or in response to the induction of Your goods and services mean you get money Consideration exists if consideration exists Meaning I did not get any supply or money, I am a customer Other than that, some kind of consideration was received

59:37 Consideration even if found in axe and kind Brother, you are the supplier who will apply GST tell me did you get any money, did you think yes Did you get GST otherwise? Yes, GST was applied Well it is not necessary that the payment recipient should meet or recipient or recipient that if any third party gives the bill then it can be Give me a mix-up against your supply If you got you then I want you too Give it to the recipient or anyone else OK GST will come against your supply ok this was part a what would part b say Part B says the monetary value of Act or Rubes, understand that I gave you the goods I provided you service, I gave you the goods I gave you service and against that I listen to him against me in money I did not find it but there was something against it By acting, I got some money against him

1:00:24 If you got berenice then you got yes in that situation ok did you enjoy it or did you give me some goodies You had some interest against him I did not get anything, okay, if there is an act for virence in the course of business in the Course of business so as far as that supply is concerned Understand what it means to be considered a consideration ok here you love someone you gave it to him you gave it to him Goods gave against him just a pleasure that happiness is not that happiness in the course of It is not a business that is an act for bans it should be in the course of business Some benefits that you are getting in this there should be a course of business then he Act of Forbearance also considered Now I will give a small example of this sa leta hoon act for berserk ok my wife

1:01:09 I am an interior decorator and I got married in 2007. It was ok and first he went to his native place She used to do interior work, now she has returned She came back again and had to do some interior work I had to start a little, she was worried that Now how do I start here, I have no I don't recognize you, only 20-2 days after marriage Later I got a call from one of my friends and the friend I got a call from him and he said no sir sorry Sir, what is Vishal doing I asked him I said nothing, I am taking classes here But in Pune he told me this, friend I am in Pune I am in Mumbai right now I am in Pune I am shifting and I have used th BHK I have bought a flat, I said congratulations Friend, you are also coming to Pune, we will meet Sometimes we meet at the airport, sometimes at the airport So he said yes friend I just bought a flat but one I am tensed friend, I have to get its interior done and I just don't have the time Do you want to get the interior done, are you afraid?

1:01:55 why is it ok i am here sitting for you Bhabhi is an interior decorator, hey, you got married I did it, I said you don't even know Yes friend I was very busy, I was in the US what ever it me too ok so hey bhabhi is there so Then what is there to worry about, ok that is work It was okay friend so I said yes Bhabhi I will take care of your interior decoration, okay? tell me what to do he said look friend ok Even two friends are talking after a long time But I am charging fees on a professional basis I will give it to Bhabhi, I said, hey friend of the house that's the point why not i will give it then I did not oppose it much, give it to me ok give it to me now what happened ok here he I had given this example in intermediate also which student or my intermediate student I had given it to him as well, he must be remembering that's why I I am repeating it because I missed you If the concept goes then in such situation my Wife started interior decoration of her flat

1:02:40 After five to six days my wife came I was a little sad sitting at home after taking class I went and said what happened jaanu ok so she I told you today our work is to be a carpenter The person standing next to him stopped everyone etc. He was my neighbour, okay so he was my flat's neighbour He stopped her and filed a complaint In the society, brother stop their work, okay We are getting very upset here I am having trouble, okay so now they say that in the afternoon ok here from 1 to 4:00 There will be no work and after 8:00 p.m. Work will not be done because it is during their sleeping time are they ok or they get disturbed ok so if this continues then I will Their target cannot be completed within the date You will get the project, I said why worry She takes it, I am here, let's both go. ok i told my friend near neighbors I did not call him, I told him it was okay I will take care of it, I went and talked to

1:03:26 I said my self chartered accountant she is inter dear decorator our work is side It's on, we went and sat inside and he said welcome did you do it well i said sir a little They completed the project in three months If you want to do it then please cooperate with us If you don't work hard then you will be stuck here It will become difficult to give the project it won't happen he said no no no I have a lot of trouble in the afternoon and at night don't work after 8:00 pm we are very There is a problem, we said sir please Cooperate, your interior is also not done If you get your interior done tomorrow then in such a case If you also need our help then they I said ok sorry we have objection in society If they don't pick it up then in such a case I have given them An offer is given, look at the interior on the side Work is going on for the interior of your hall too

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