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CMA Intermediate · Direct and Indirect Taxation · Concept of Supply including Composite and Mixed Supplies

Under Section 7(1)(c) of the CGST Act, 2017, activities listed in Schedule I are treated as supply even when made without consideration. Which of the following is the correct position?

Schedule I activities are supply even if made or agreed to be made without a consideration. Section 7(1)(c) specifically includes them within the meaning of supply, unlike ordinary transactions under clause (a), which need consideration and must be in the course or furtherance of business.

  1. ASchedule I activities are supply only if made for a consideration, like any other transaction
  2. BSchedule I activities are supply even if made or agreed to be made without a considerationCorrect
  3. CSchedule I activities are treated neither as supply of goods nor of services
  4. DSchedule I activities are supply only when made by an individual to a non-member

Explanation

Section 7(1)(c) includes in 'supply' the activities specified in Schedule I, made or agreed to be made without a consideration. So the absence of consideration does not take them outside supply. The option requiring consideration describes clause (a), not Schedule I.

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