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

Under Section 7(1)(b) of the CGST Act, 2017, an import of services is a supply when it is made for a consideration. Which additional condition applies to this clause?

Import of services for a consideration is a supply under Section 7(1)(b) whether or not it is made in the course or furtherance of business. The business-nexus condition applies only to clause (a), so a non-business import for consideration is still a supply.

  1. AIt must be made in the course or furtherance of business
  2. BIt must be made by a registered person only
  3. CIt is a supply whether or not made in the course or furtherance of businessCorrect
  4. DIt must be made to a related person

Explanation

Section 7(1)(b) includes import of services for a consideration whether or not in the course or furtherance of business. Option A is wrong because that condition appears only in clause (a), which covers other forms of supply. Registration and relationship with the supplier are not conditions in clause (b).

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