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

Under Section 7 of the CGST Act, 2017, which one of the following statements about the scope of supply is correct?

Import of services for a consideration is a supply whether or not it is in the course or furtherance of business. Section 7(1)(b) expressly removes the business condition for such imports, whereas ordinary supplies under clause (a) require both consideration and a business context.

  1. AImport of services is a supply only if made in the course or furtherance of business
  2. BActivities in Schedule III are treated as supply of services when made without consideration
  3. CImport of services for a consideration is a supply whether or not in the course or furtherance of businessCorrect
  4. DSupply under clause (a) of sub-section (1) requires no consideration if made by a business

Explanation

Section 7(1)(b) includes import of services for a consideration whether or not in the course or furtherance of business. The first option adds a business condition that clause (b) removes. Schedule III activities are treated neither as supply of goods nor of services.

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