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CMA Intermediate · Direct and Indirect Taxation · Concept of Supply including Composite and Mixed Supplies

Subject to sections 7(1), (1A) and (2), section 7(3) of the CGST Act, 2017 empowers the Government to:

Section 7(3) allows the Government, on the Council's recommendations, to notify transactions as a supply of goods and not services, or as services and not goods, subject to sections 7(1), (1A) and (2). It does not cover exemptions or principal supply determination.

  1. AAmend Schedule III by an order of the proper officer
  2. BSpecify by notification, on the Council's recommendations, transactions to be treated as a supply of goods and not services, or as services and not goodsCorrect
  3. CExempt any supply from tax without the Council's recommendation
  4. DDecide the principal supply of a composite supply

Explanation

Section 7(3) lets the Government, on the Council's recommendations, notify transactions to be treated as a supply of goods and not services, or a supply of services and not goods. It does not give power to amend Schedule III through an officer, nor to act without Council recommendation. Principal supply is determined under section 8.

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