Activity 11 1. What is the basic, underlying principle of GST as it relates to supply? Conduct your own research. 110 words 2. Organisations that have registered for GST include GST in the sale price...

Activity 11
1. What is the basic, underlying principle of GST as it relates to supply? Conduct your own research. 110 words

The basic underlying principle of GST says that when there is taxable supply between taxable persons for a consideration then GST shall be charged on such supple. The charging event for GST shall be supply. If certain transaction does not fall in the definition of supply then that transaction is not exposed to GST. For any transaction to become taxable, first it must be supply as per its definition after which only it shall trigger the GST. However, to this above basic rule, there are provisions which declare some supplies outwardly as supply even if they do not conform to be supply. These transactions will always be considered as supply not considering the nature of the transaction.
2. Organisations that have registered for GST include GST in the sale price of their goods. Are there any sales that might not include GST? 90 words

As per the GST regime, on every taxable supply, GST must be charged. However, there are certain exemptions where some supplies can be made without charging GST. In this regime, certain supplies are added to negative list. This negative list contains those supplies which are exempted from GST. That means no GST will be charges. Also, on some activities rate of GST shall be NIL. Following sales shall not include GST:
· Supplies which are added to negative list.
· Supplies which are exempted from charging GST.
· Supplies on which Rate of GST is 0%.
3. Find out and document how government grants should be treated for GST purposes. Document your source or sources of information. 40 words

Government grants are financial assistance received from government for managing the business. Any...