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Sec 7(1) of the CGST Act states, the expression “supply” includes – “ All forms of supply of goods or services or both 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.”

Thus, as per the above section, the term supply is very wide and it includes all forms of supply of goods or services or both and is an inclusive definition.

In this article, we would like to elaborate on each of the above 8 terms which are included in supply as given under:


Sale means:

  1. The act of selling, more specifically, the transfer of ownership of and title to the property from one person to another for a price
  2. The exchange of a commodity for money;
  3. The exchange of goods or services for an amount of money or its equivalent

B. Transfer

Transfer means:

  1. To move someone or something from one place, vehicle, person or group to another.
  2. To make something the legal property of another person.


Barter means:

  1. To exchange goods for other things rather than for money.
  2. To trade by exchanging one commodity for another: to trade goods or services in exchange for other goods and services
  3. Exchange (goods or services) for other goods or services without using money.

D. Exchange

Exchange means:

  1. The act of giving something to someone and them giving you something else.
  2. To give up, part with, or transfer (one thing) for an equivalent


License means:

  1. To give someone official permission to do or to have something
  2. A permit from an authority to own or use something , do a particular thing, or carry on a trade.
  3. A contract allowing someone to use a proprietory product or service


Rental means:

  1. An arrangement to rent something, or the amount of money that you pay to rent something.
  2. A sum paid to someone for the use of (something, typically property, land or a car)


Lease means:

  1. A contract by which one conveys real estate, equipment, or facilities for a specified term and for a specified rent
  2. A contract granting use or occupation of property during a specified period in exchange for a specified rent or other form of payment.

H. Disposal

Disposal means:

  1. The act of getting rid of something, especially by throwing it away
  2. Final placement or riddance of wastes, excess, scrap, etc, under proper process and authority with (unlike in storage) no intention to retrieve. Disposal may be accomplished by abandonment, destruction, internment, donation, sale, etc.

It is also important to mention here that besides the above illustrative forms of supply, there can be other forms of supply of goods or services or both.

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