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CS Professional · Goods and Services Tax (GST) and Corporate Tax Planning · Supply under GST

Under Section 7(1)(a) of the CGST Act, 2017, which combination of elements must be present for a sale of goods by a person to fall within 'supply' under that clause?

A supply under Section 7(1)(a) requires that the transaction is made or agreed to be made for a consideration and by a person in the course or furtherance of business. Dropping the business requirement applies only to import of services, and registration is not a condition.

  1. AMade or agreed to be made for a consideration, in the course or furtherance of businessCorrect
  2. BMade for a consideration, whether or not in the course or furtherance of business
  3. CMade without consideration, in the course or furtherance of business
  4. DMade for a consideration, but only if the supplier is a registered person

Explanation

Section 7(1)(a) covers all forms of supply such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business. The 'whether or not in the course of business' wording belongs to import of services under clause (b). Registration is not a condition for a transaction to be a supply.

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