Chapter III (Sections 7-11) of the Central Goods and Services Tax (CGST) Act, 2017 deals with provisions related to Levy and Collection of Tax. Section 7 of Central Goods and Services Tax Act, 2017 (12 of 2017) provides for Scope of Supply under CGST Act 2017.
Recently, we have discussed in detail section 6 (i.e. Authorisation of officers of State tax or Union territory tax as proper officer in certain circumstances) of CGST Act 2017. Today, we learn the provisions of section 7 of the CGST Act 2017. Complete Details of CGST Section 7 – Scope of Supply. You may CLICK HERE to download list of all sections of CGST Act 2017 in PDF format.
Did you know? CGST Act 2017 have been enacted by Parliament in the Sixty-eighth Year of the Republic of India to make a provision for levy and collection of tax on intra-State supply of goods or services or both by the Central Government and for matters connected therewith or incidental thereto.
Notes on Section 7 of CGST Act 2017
Section 7(1): For the purposes of this Act, the expression “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;
(b) import of services for a consideration whether or not in the course or furtherance of business;
(c) the activities specified in Schedule I, made or agreed to be made without a consideration; and
(d) the activities to be treated as supply of goods or supply of services as referred to in Schedule II.
Section 7(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.
Section 7(3): Subject to the provisions of sub-sections (1) and (2), 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.