Meaning of Supply under CGST Act 2017

As per CGST Act 2017 GST to be levied on SUPPLY of Goods or Ser­vices. There­for the mean­ing of Sup­ply is very much cru­cial for lav­ing GST on any trans­ac­tion. For Lavt­ing GST on any Tax­able Goods the trans­ac­tion in it has to ful­fill the con­di­tion of Supply.

Sec­tion 7 of CGST ACT 2017 defines the mean­ing of Supply:

  1. (1) For the pur­pos­es of this Act, the expres­sion “sup­ply” includes––
  • 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;
  • import of ser­vices for a con­sid­er­a­tion whether or not in the course or fur­ther­ance of business;
  • the activ­i­ties spec­i­fied in Sched­ule I, made or agreed to be made with­out a con­sid­er­a­tion; and
  • the activ­i­ties to be treat­ed as sup­ply of goods or sup­ply of ser­vices as referred to in Schedule

(2) Notwith­stand­ing any­thing con­tained in sub-sec­tion (1),––

  • activ­i­ties or trans­ac­tions spec­i­fied in Sched­ule III; or
  • 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.

  • 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 sup­ply of goods and not as a sup­ply of ser­vices; or
    • a sup­ply of ser­vices and not as a sup­ply of goods.

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