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

Under Section 7 of the CGST Act, 2017, who may specify by notification that certain transactions are to be treated as a supply of goods and not as a supply of services?

The Government may do so by notification on the recommendations of the GST Council. Section 7(3) gives this power, subject to sub-sections (1), (1A) and (2), so it cannot be exercised by a proper officer, an appellate authority or a taxpayer on their own.

  1. AThe Government, on the recommendations of the Council, subject to sub-sections (1), (1A) and (2)Correct
  2. BThe proper officer, on his own, at the time of assessment
  3. CThe GST Appellate Authority, in an appeal order
  4. DAny registered person, through a declaration in the return

Explanation

Section 7(3) empowers the Government, on the Council's recommendations, to notify transactions as goods and not services, or services and not goods, subject to sub-sections (1), (1A) and (2). Officers, appellate bodies or taxpayers have no such power.

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