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CMA Intermediate · Direct and Indirect Taxation · Introduction to GST Law

Under Section 7(1)(b) of the CGST Act, 2017, import of services is covered within the scope of 'supply'. Which statement about this clause is correct?

Import of services is a supply when made for a consideration, and it does not matter whether it is in the course or furtherance of business. The business-nexus requirement belongs to Section 7(1)(a), not to the import clause, so a non-business import for consideration is still a supply.

  1. AImport of services is a supply only if made for a consideration and in the course or furtherance of business
  2. BImport of services is a supply if made for a consideration, whether or not in the course or furtherance of businessCorrect
  3. CImport of services is a supply even without consideration, if made in the course of business
  4. DImport of services is a supply only when the recipient is a registered person

Explanation

Section 7(1)(b) includes import of services for a consideration whether or not in the course or furtherance of business. The business-nexus condition applies to clause (a), not clause (b). Option A wrongly imports that condition into import of services.

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