Amended and updated notes on section 7 of CGST Act, 2017. Detail discussion on provisions and rules related to scope of supply.
Chapter III (Sections 7–11) of the Central Goods and Services Tax Act, 2017 deals with the provisions related to levy and collection of tax. Section 7 of CGST 2017 provides for scope of supply.
Recently, we have discussed in detail section 6 (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 Central GST Act 2017.
Section 7 of the Central Goods and Services Tax Act, 2017 has been notified by the Ministry of Finance vide Notification No. 9/2017-Central Tax, G.S.R. 658(E), dated 28.06.2017. This notification was come into force from 1st July, 2017 i.e. the commencement date of section 7 is 1-7-2017.
| Name of Act | The Central Goods and Services Tax Act 2017 |
|---|---|
| Enacted by | Parliament of India |
| Administered by | Central Board of Indirect Taxes & Customs |
| Governing body | GST Council |
| Number of Chapters | 21 |
| Number of Sections | 174 |
| You are reading: | |
| Chapter No. | III |
| Chapter Name | Levy and Collection of Tax |
| Section No. | 7 |
| Section Name | Scope of supply |
| Updated 2024 Edition | GST Law Book PDF |
Section 7 of Central GST – Scope of supply1
Section 7 of CGST Act 2017 shall come into force on 01.07.2017 vide Notification No. 9/2017-Central Tax, G.S.R. 658(E), dated 28.06.2017.
Section 7(1) of CGST Act
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; and
- (c) the activities specified in Schedule I, made or agreed to be made without a consideration;
- (d) [Omitted by CGST (Amendment) Act, 2018]
the activities to be treated as supply of goods or supply of services as referred to in Schedule II.
Section 7(1A) of CGST Act
Section 7(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.
Section 7(2) of CGST Act
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.
Following notified activities or Transactions shall be treated neither as a supply of goods nor a supply of services:
- Services by way of any activity in relation to a function entrusted to a Panchayat under article 243G of the Constitution or to a Municipality under article 243W of the Constitution.
- Service by way of grant of alcoholic liquor licence, against consideration in the form of licence fee or application fee or by whatever name it is called.
Section 7(3) of CGST Act
Section 7(3): Subject to the provisions of sub-sections (1), (1A) 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.
- Section 7 of CGST Act 2017 shall come into force on 01.07.2017 vide Notification No. 9/2017-Central Tax, G.S.R. 658(E), dated 28.06.2017. ↩︎