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CMA Final · Indirect Tax Laws and Practice · Supply under GST

Under Section 7 of the CGST Act, 2017, which of the following is the correct position about import of services?

Import of services for a consideration is a supply whether or not it is in the course or furtherance of business. The business-nexus requirement applies only to clause (a) supplies, so even a non-business importer making a paid import of services makes a supply under Section 7(1)(b).

  1. AIt is a supply only if the importer is engaged in business and receives the service in the course of that business
  2. BIt is a supply when made for a consideration, whether or not it is in the course or furtherance of businessCorrect
  3. CIt is a supply only when made without consideration between related persons
  4. DIt is treated neither as a supply of goods nor a supply of services

Explanation

Section 7(1)(b) includes import of services for a consideration whether or not in the course or furtherance of business. The business-nexus condition in option A applies to clause (a), not to import of services. Import is not listed in Schedule III, so option D is wrong.

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