Provisions under Section 7 of the Central Goods and Services Tax (CGST) Act, 2017 relating to “Scope of Supply”:
Section 7 of CGST Act 2017: Scope of Supply (CHAPTER III LEVY AND COLLECTION OF TAX)
(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, license, 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. [clause (aa) inserted from 01/07/2017, effective 01/01/2022: refer Note 2]
Explanation.- For the purposes 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; [explanation inserted from 01/07/2017, effective 01/01/2022: refer Note 2]
(b) import of services for a consideration whether or not in the course or furtherance of business; and [text inserted from 01/07/2017, effective 01/02/2019: refer Note 1(a)]
(c) the activities specified in Schedule I, made or agreed to be made without a consideration. and [text omitted from 01/07/2017, effective 01/02/2019: refer Note 1(b)]
(d) the activities to be treated as supply of goods or supply of services as referred to in Schedule II. [clause (d) omitted from 01/07/2017, effective 01/02/2019: refer Note 1(c)]
(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. [sub-section (1A) inserted from 01/07/2017, effective 01/02/2019: refer Note 1(d)]
(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.
(3) Subject to the provisions of sub-sections (1) and (2) sub-sections (1), (1A) and (2) [text substituted from 01/07/2017, effective 01/02/2019: refer Note 1(e)], 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.
| Note: CBEC notifies 01/07/2017 as the commencement date vide Notification 9/2017. |
Amendments History:
1. Amendments vide Section 3 of the CGST (Amendment) Act, 2018, w.r.e.f. 01/07/2017, followed with Notification 2/2019 on commencement date of 01/02/2019:
a) in clause (b) of sub-section (1), the word ‘and’ inserted after the text ‘or furtherance of business’;
b) in clause (c) of sub-section (1), the word ‘and’ omitted after the text ‘a consideration’;
c) clause (d) of sub-section (1) omitted;
d) Sub-section (1A) inserted; and
e) in sub-section (3), the text ‘sub-sections (1) and (2)’ substituted with the text ‘sub-sections (1), (1A) and (2)’.
2. Clause (aa) with Explanation inserted in sub-section (1), w.r.e.f. 01/07/2017, vide Section 108 of the Finance Act 2021, followed with Notification 39/2021 on commencement date of 01/01/2022.
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| CGST Act 2017: Last updated 15/02/2024 |
| The CGST Act 2017 has been notified vide GOI Notification dated 12/04/2017, which has subsequently been amended through the CGST (Extension to J&K) Act 2017, Finance Act 2018, CGST Amendment Act 2018, Finance Act 2019, Finance Act 2020, Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance/Act 2020, Finance Act 2021, Finance Act 2022, Finance Act 2023, CGST Amendment Act 2023, CGST Second Amendment Act 2023 & Finance Act, 2024 including various Notifications/Orders issued by the Govt./ CBIC from time to time, relating to the commencement dates of various sections and provisions in the respective CGST/Amendment Acts, wherever required. Information on this page is a section-wise compilation of the amendments to the CGST Act, 2017 made through various notifications issued by CBIC from time to time (upto 15th February, 2024), with the best possible efforts for accuracy. In any case, E&OE. For official or updated information, please visit the CBIC website. |
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