Concept Of Manufacture Under GST

The Goods & Services Tax (GST) has changed the manner of levy of indirect tax pursuant to introduction of the concept of supply. Section 7 of the CGST Act defines supply as sale, transfer, barter, exchange, licence, rental, lease, or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business. Comparing the scope of levy with the erstwhile indirect tax law which was primarily based on manufacture, provision of services and sale, it becomes apparent that GST law has expanded the scope of levy. However, the concept of manufacture which the GST law tried to do away with does not become obsolete and is still relevant today.

In terms of the Central Excise Act, the term manufacture includes any process: