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

Under Section 7(1)(b) of the CGST Act, 2017, import of services is a supply when it is made for a consideration. Which statement about the 'course or furtherance of business' requirement for such import is correct?

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 test applies to clause (a) supplies, not to imports of services, so a non-business import for consideration is still a supply.

  1. AThe import is a supply only if it is made in the course or furtherance of business
  2. BThe import is a supply whether or not it is made in the course or furtherance of businessCorrect
  3. CThe import is a supply only if the recipient is a registered person
  4. DThe import is a supply only if the consideration is paid in foreign exchange

Explanation

Section 7(1)(b) covers import of services for a consideration whether or not in the course or furtherance of business. Hence the business-nexus condition in clause (a) does not apply to imports of services. Option A wrongly imports the clause (a) test into clause (b).

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