Section 7 of CGST Act 2017: Scope of Supply
Provisions under Section 7 of the Central Goods and Services Tax (CGST) Act, 2017 relating to “Scope of Supply”, are as under:
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, 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]$1;
(c) the activities specified in Schedule I, made or agreed to be made without a consideration; [
(d) the activities to be treated as supply of goods or supply of services as referred to in Schedule II.]$3
[(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.]$4
(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) (1), (1A) and (2)]$5, 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.
$1. In clause (b) of sub-section (1), the word ‘and’ inserted after the words ‘or furtherance of business’.*
$2. In clause (c) of sub-section (1), the word ‘and’ omitted after the words ‘a consideration’.*
$3. Clause (d) omitted.*
$4. Sub-section (1A) inserted.*
$5. In sub-section (3), for the words, brackets and figures ‘sub-sections (1) and (2)’, the words, brackets, figures and letter ‘sub-sections (1), (1A) and (2)’ substituted.*
* Notified vide CGST (Amendment) Act, 2018, w.e.f. 1 July 2017.
The Central Goods and Services Tax (CGST) Act, 2017 was notified by Govt. on 12 April, 2017 and CBIC has notified the commencement date for various Sections/ Provisions thereof from time to time. Subsequently, Govt. has notified the Central Goods and Services Tax (CGST) (Amendment) Act, 2018 on 30 Aug. 2018. However, commencement date of amended provisions of various Sections is to be separately notified by CBIC, except where specifically mentioned in the CGST Amendment Act, 2018 itself.