Provisions under the ‘Third Schedule (III)’ to the CGST Act 2017 regarding “Activities/ Transactions which shall not be treated as Supply of Goods or Services”:
Schedule III to CGST Act 2017: Activities or Transactions which shall be treated neither as a Supply of Goods nor a Supply of Services (See Section 7)
1. Services by an employee to the employer in the course of or in relation to his employment.
2. Services by any court or Tribunal established under any law for the time being in force.
3. (a) the functions performed by the Members of Parliament, Members of State Legislature, Members of Panchayats, Members of Municipalities and Members of other local authorities;
(b) the duties performed by any person who holds any post in pursuance of the provisions of the Constitution in that capacity; or
(c) the duties performed by any person as a Chairperson or a Member or a Director in a body established by the Central Government or a State Government or local authority and who is not deemed as an employee before the commencement of this clause.
4. Services of funeral, burial, crematorium or mortuary including transportation of the deceased.
5. Sale of land and, subject to clause (b) of paragraph 5 of Schedule II, sale of building.
6. Actionable claims, other than lottery, betting and gambling specified actionable claims [text substituted from 01/10/2023: refer Note 4].
7. Supply of goods from a place in the non-taxable territory to another place in the non-taxable territory without such goods entering into India. [para 7 inserted from 01/02/2019: refer Note 1 & 3]
8. (a) Supply of warehoused goods to any person before clearance for home consumption; [para 8 inserted from 01/02/2019: refer Note 1 & 3]
(b) Supply of goods by the consignee to any other person, by endorsement of documents of title to the goods, after the goods have been dispatched from the port of origin located outside India but before clearance for home consumption.[para 8 inserted from 01/02/2019: refer Note 1 & 3]
Explanation 1 [explanation renumbered from 01/02/2019: refer Note 2]: For the purposes of paragraph 2, the term “court” includes District Court, High Court and Supreme Court.
Explanation 2: For the purposes of paragraph 8, the expression “warehoused goods” shall have the same meaning as assigned to it in the Customs Act, 1962. [explanation inserted from 01/02/2019: refer Note 2]
Amendments History:
1. Paragraphs 7 & 8 inserted vide the CGST (Amendment) Act, 2018, followed with Notification 2/2019 on commencement date of 01/02/2019.
2. Explanation renumbered as Explanation 1. Further, Explanation 2 inserted vide the CGST (Amendment) Act, 2018, followed with Notification 2/2019 on commencement date of 01/02/2019.
3. Retrospective amendment for exemption to certain activities and transactions in Schedule III of the CGST Act, vide Section 159 of the Finance Act, 2023, followed with Notification 28/2023 on commencement date of 01/10/2023:
(i) Paragraphs 7 and 8 and the Explanation 2 thereof (as inserted vide section 32 of the Finance Act, 2018) shall be deemed to have been inserted therein with retrospective effect from July 1, 2017.
(ii) Accordingly, no refund shall be made of all the tax which has been collected, but which would not have been so collected, had this retrospective amendment or exemption been in force at all material times.
4. Paragraph 6 amended vide the CGST (Amendment) Act, 2023, followed with Notification 48/2023 on commencement date of 01/10/2023.
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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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