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

Under Section 7(1)(a) of the CGST Act, 2017, which of the following is an essential condition for an activity to be a supply of goods or services under that clause?

Under Section 7(1)(a), a supply must be made or agreed to be made for a consideration by a person in the course or furtherance of business. Transfer of title, registration status of the recipient or intra-State movement is not a condition, as rental, lease and licence also qualify.

  1. AIt must be made for a consideration by a person in the course or furtherance of businessCorrect
  2. BIt must be made only by a registered person to an unregistered person
  3. CIt must involve a transfer of title in goods
  4. DIt must be made only within the same State

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. Transfer of title is not required, since licence and rental are also listed. Location of the parties is not a condition.

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