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

Under Section 7(1)(b) of the CGST Act, 2017, which statement about import of services 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 clause deliberately removes the business-purpose requirement that applies to ordinary supplies under clause (a).

  1. AIt is a supply only if the import is made in the course or furtherance of business
  2. BIt is a supply when imported for a consideration, whether or not in the course or furtherance of businessCorrect
  3. CIt is a supply only when imported without consideration
  4. DIt is neither a supply of goods nor of services

Explanation

Section 7(1)(b) includes import of services for a consideration whether or not in the course or furtherance of business. The first option adds a business condition that the clause expressly removes. Import without consideration is covered by Schedule I only in specified cases, not by clause (b).

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