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CA Intermediate · Taxation · Supply under GST

Ramesh, an individual in Jaipur, has a legal practice and also employs a clerk, Suresh. During the year, which of the following is treated as neither a supply of goods nor a supply of services under Schedule III of the CGST Act, 2017?

Services by an employee to the employer in the course of or in relation to employment are covered by Schedule III and are neither a supply of goods nor of services. Legal services, renting of a shop and sale of goods for consideration remain supplies.

  1. AServices by an employee to the employer in the course of or in relation to employmentCorrect
  2. BServices by a lawyer to a business entity
  3. CRenting of a commercial shop by Ramesh to a tenant
  4. DSupply of goods by Ramesh from his office to a client for consideration

Explanation

Schedule III lists services by an employee to the employer in the course of or in relation to employment as neither goods nor services. The other three are supplies for consideration in the course of business and remain taxable unless separately exempt.

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