The Concept of supply
Earlier, taxable event under the various indirect tax laws was different like manufacturing under excise laws, sale under VAT laws, and provision of services under service tax laws… to subsumed all these taxable event, the concept of supply has been introduced. The taxable event under GST shall be the supply of Goods and/ or services.
 
In General, following elements in order to constitute supply
(i) supply of goods and / or services;
(ii) supply is for a consideration; [Exception: Section 3 ( 1 ) ( c )#]
(iii) supply is made in the course or furtherance of business; [Exception: Section 3 ( 1 ) ( b )##]
(iv) supply is made in the taxable territory;
(v) supply is a taxable supply;
(vi) Supply is made by a taxable person.
 
Definition relating to the elements in order to constitute supply
Section 2 of the Central/ State Goods and Service Tax Act, 2016
(17) “business” includes –
(a) any trade, commerce, manufacture, profession, vocation, adventure, wager or any other similar activity, whether or not it is for a pecuniary benefit;
(b) any activity or transaction in connection with or incidental or ancillary to (a) above;
(c) any activity or transaction in the nature of (a) above, whether or not there is volume, frequency, continuity or regularity of such transaction;
(d) supply or acquisition of goods including capital assets and services in connection with commencement or closure of business;
(e) provision by a club, association, society, or any such body (for a subscription or any other consideration) of the facilities or benefits to its members, as the case may be;
(f) admission, for a consideration, of persons to any premises; and
(g) services supplied by a person as the holder of an office which has been accepted by him in the course or furtherance of his trade, profession or vocation;
(h) services provided by a race club by way of totalisator or a licence to book maker in such club;
Explanation.- Any activity or transaction undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities shall be deemed to be business.
 
(28) “consideration” in relation to the supply of goods or services includes
(a) any payment made or to be made, whether in money or otherwise, in respect of, in response to, or for the inducement of, the supply of goods or services, whether by the recipient or by any other person but shall not include any subsidy given by the Central Government or a State Government;
(b) the monetary value of any act or forbearance, whether or not voluntary, in respect of, in response to, or for the inducement of, the supply of goods or services, whether by the recipient or by any other person but shall not include any subsidy given by the Central Government or a State Government:
PROVIDED that a deposit, whether refundable or not, given in respect of the supply of goods or services shall not be considered as payment made for the supply unless the supplier applies the deposit as consideration for the supply;
 
(49) “goods’’ means every kind of movable property other than money and securities but includes actionable claim, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before supply or under a contract of supply;
 
(92) “services’’ means anything other than goods;
Explanation 1.- Services include transactions in money but does not include money and securities;
Explanation 2.- Services does not include transaction in money other than an activity relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged.
 
(95) “Supply’’ shall have the meaning as assigned to it in section 3;
 
(98) “taxable person’’ shall have the meaning as assigned to it in section 10;
 
(99) “taxable supply’’ means a supply of goods and/or services which is chargeable to tax under this Act;
 
 (101) “taxable territory’’ means the territory to which the provisions of this Act apply;
 
Section 10 of Central/ State Goods and Service Tax Act, 2016 - Taxable person
(1) Taxable Person means a person who is registered or liable to be registered under Schedule V of this Act.
(2) A person who has obtained or is required to obtain more than one registration, whether in one State or more than one State, shall, in respect of each such registration, be treated as distinct persons for the purposes of this Act.
(3) An establishment of a person who has obtained or is required to obtain registration in a State, and any of his other establishments in another State shall be treated as establishments of distinct persons for the purposes of this Act.
 
Section 3 of the Central/ State Goods and Service Tax Act 2016 - Meaning and scope of supply
(1) Supply includes—
(a) all forms of supply of goods and/or services such as sale, transfer, barter, exchange, license, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business,
# (b) importation of services, for a consideration whether or not in the course or furtherance of business, and
## (c) a supply specified in Schedule I, made or agreed to be made without a consideration.
(2) Schedule II, in respect of matters mentioned therein, shall apply for determining what is, or is to be treated as a supply of goods or a supply of services.
(3) Notwithstanding anything contained in sub-section (1),
(a) activities or transactions specified in schedule III; or
(b) activities or transactions undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities as specified in Schedule IV, shall be treated neither as a supply of goods nor a supply of services.
 
(4) Subject to sub-section (2) and sub-section (3), the Central or a State Government may, upon recommendation of the Council, specify, by notification, the transactions that are to be treated
(a) a supply of goods and not as a supply of services; or
(b) a supply of services and not as a supply of goods; or
(c) neither a supply of goods nor a supply of services.
 
(5) The tax liability on a composite or a mixed supply shall be determined in the following manner —
(a) a composite supply comprising two or more supplies, one of which is a principal supply, shall be treated as a supply of such principal supply;
(b) a mixed supply comprising two or more supplies shall be treated as supply of that particular supply which attracts the highest rate of tax.

click at http://caprabhash.blogspot.in/2017/01/the-concept-of-supply-under-gst.html to access schedules to the GST.

The author is the member of the ICAI and may be contacted at pbhch.d@gmail.com