Eye Share : Walking the fine line between supply and payment

In case of every taxing statute, there exists a taxable event on the occurrence of which, tax is said to be payable. In the case of GST legislation, the taxable event is ‘supply’. A conjoint reading of Section 2(31) viz. definition of “consideration” and Section 7 of CGST Act viz. scope of “supply” shows that for tax / GST to be levied when payment is made, the same must be for a supply. In other words, there has to be a direct nexus between payment and supply in ...