“taxable supply” means a supply of goods or services or both which is leviable to tax under this Act;
For a transaction to qualify as a taxable supply, the following components are compulsory:
The transaction must involve either goods or services, or both of them;
Such goods or services should not be specified under Schedule III (neither a supply of goods nor a supply of services);
The transaction should fall within the meaning of ‘supply’ in terms of Section 7 of the CGST Act;
The supply should be leviable to GST – i.e., it should not be covered within the meaning of ‘non-taxable supply’ as defined under Section 2(78) – i.e., alcoholic liquor for human consumption. This implies that supplies enjoying a full exemption from tax by way of an exemption notification would also be treated as taxable supplies.