EXAMPLE-60

A dealer of water purifier on which ITC is availed permanently transfers a water purifier from his stock in trade, for personal use at his residence. Will the transaction constitute a supply?

Answer:-

As per Section 7 of CGST Act, supply of goods and/or services covers any activity such as sale, transfer, barter, exchange, license, rental, lease or disposal made or agreed to be made for a consideration and for furtherance of business.  However, as per Schedule I, permanent transfer or disposal of business assets where input tax credit has been availed on such assets even without consideration is covered under GST.

Thus supply of water purifier permanently for his personal use according to Schedule I is covered under supply as ITC was avail at the time of purchase of such product.