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Section
Section 7 of CGST Act i.e. Defination of Supply read with circulars and amendments as applicable till date
March 31, 2020
Section 7 of CGST Act
Defination of Supply
To be read with
(b) Schedule I (c) Schedule II (d) Schedule III (e) Notification No 14/2017 Central Tax Rate dated 28/06/2017 |
Section 7(1) “Supply” includes:-
(a) all forms of supply of
goods or services or both
such 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;
(aa) the activities or transactions
By a person, other than an individual
to its members or constituents or vice versa
for cash, deferred payment or other valuable consideration
Explanation:-
For the purpose of this clause it is hereby clarified that
Notwithstanding anything contained in any other law for the time being in force
Or any judgment, decree or order of any court, tribunal or authority
The person and its members or constituents shall be deemed to be two separate persons and the supply of activities or transactions inter se shall be deemed to take place from one such person to another.
(INSERTED BY FINANCE ACT 2021 WITH RETROSPECTIVE EFFECT FROM 1ST JULY 2017)
Article on Section 7(1)(aa) i.e,. Why this amendment is required
(b) import of services
for a consideration
whether or not in the course or furtherance of business and
(And has been Inserted by CGST Amendment Act 2018)
(c) the activities Specified in Schedule I,
made or agreed to be made
without a consideration; and
(And has been Omitted by CGST Amendment Act 2018)
(d) the activities to be treated as
supply of goods or supply
of services as referred to in Schedule II.
(Omitted by CGST Amendment Act 2018)
(1A) Where certain activities or transactions
constitute a supply in accordance with the provisions of sub section (1),
they shall be treated either as
supply of goods or
supply of services as referred to in schedule II
(Inserted by CGST Amendment Act 2018)
(2) Notwithstanding anything contained in sub-section (1),
(a) activities or transactions specified in Schedule III; or
(b) such activities or transactions undertaken by the
Central Government,
a State Government or
any local authority
in which they are engaged as public authorities,
as may be notified by the Government on the recommendations of the Council,
shall be treated
neither as a supply of goods
nor a supply of services.
NOTIFICATION NO 14/2017 CENTRAL TAX RATE
Section 7(2)(b) read with Notification No 14/2017 Central Tax Rate Dated 28/06/2017
Services by way of any activity in relation to function entrusted to a panchayat under acticle 243G of the constitution
Provided by Central Govt, State Govt or any local authority In which they are engaged as public authorities Shall Neither be Treated as supply of goods or supply of services
NO GST will be applicable only when CG, SG or local authority provides any supply to Panchayats.
If panchayats receive goods or services from anybody else GST would be applicable. |
(3) Subject to the provisions of sub-sections (1), (1A), and (2),
((1A)Added by CGST Amendment Act 2018)
the Government may, on the recommendations of the Council,
specify, by notification,
the transactions that are to be treated as—
(a) a supply of goods and not as a supply of services; or
(b) a supply of services and not as a supply of goods
Thanks
CA Rahul Gupta
