Now let us understand the meaning of ‘supply’ in the context of gst..
Supply has not been explained directly but it has been described as inclusive definition. One part of supply mentions that “Supply includes all forms of supply of goods or service or both such as sale, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course of furtherance of business”.
Let us now analyse the first part of the meaning of the supply. Supply means any form of supply of goods or service or both. Dictionary meaning of supply means “make available to someone” or “to provide”. It also exemplify few transactions like
1. Sales – Dictionary meaning – the exchange for money,
2. Barter – Dictionary meaning – exchange (goods or services) for other goods or services without using money,
3. Exchange – Dictionary meaning – give something and receive something of the same kind in return,
4. License – Dictionary meaning – a permit from an authority to own or use something,
5. Rental – Dictionary meaning – an arrangement to rent something,
6. Lease – Dictionary meaning – a contract by which one party conveys land, property, services, etc. to another for a specified time, usually in return for a periodic payment, and
7. Disposal – Dictionary meaning – a act or process of transferring something to or providing something for another.
And thus we can see that the definition of ‘Supply’ has covered all type of possible transactions exhaustively.