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CS Professional · Goods and Services Tax (GST) and Corporate Tax Planning · Supply under GST

Under section 7(1)(c) of the CGST Act, 2017, the activities specified in Schedule I are treated as supply when they are made:

Section 7(1)(c) brings the activities specified in Schedule I within supply even when they are made, or agreed to be made, without consideration. This is a deliberate exception to the general requirement of consideration under section 7(1)(a).

  1. AOnly if a consideration is received in money
  2. BWithout consideration, or agreed to be made without considerationCorrect
  3. COnly by a registered person to an unrelated person
  4. DOnly if they are notified by the Council as taxable

Explanation

Section 7(1)(c) includes in supply the activities specified in Schedule I, made or agreed to be made without a consideration. This is the exception to the general rule that supply needs consideration. Option A is wrong because it would not need Schedule I at all.

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