Taxable event means any event or instance, occurrence of which triggers or result in a tax liability. In simple, taxable event result in tax liability.
In earlier indirect tax regime, there are multiple taxes with multiple taxable events, like for excise duty, the taxable event was production or manufacturing of goods and for service tax, taxable event is performance of services etc., however, in GST, the taxable event is supply of goods or services or both.
Supply itself is a vast topic to discuss, as the GST foundation is based on supply. It means, if any transaction unless it does not falls into the definition of supply, the GST liability would not arise.
For example, supply of alcoholic liquor for human consumption kept outside preview of GST, hence no GST liability would arise in this case.
In GST, there are two important definitions to understand i.e., Supplier and Recipient of supply of goods or services:
In nutshell, any transaction would be liable to GST, only if such transaction falls under the definition of goods or services, and such transaction falls under the definition of supply. If such, transaction falls under the definition of supply, then such event will trigger taxable event and it will be attract GST liability.
I hope you like reading our article, and in case you have any doubts or like share any feedback, then please feel free to write us.
Team Taxation Insight