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

Under Section 7(2) of the CGST Act, 2017, which activities are treated neither as a supply of goods nor a supply of services?

Activities specified in Schedule III, and notified activities of the Central Government, a State Government or a local authority as public authorities, are neither a supply of goods nor of services under Section 7(2). Exempt supplies under Section 11 remain supplies.

  1. AActivities in Schedule III, and notified activities by the Government or local authorities as public authoritiesCorrect
  2. BOnly activities of an individual
  3. CAll activities without consideration
  4. DOnly activities exempted under Section 11

Explanation

Section 7(2) overrides sub-section (1): activities in Schedule III, and activities undertaken by the Central Government, a State Government or a local authority as public authorities that are notified on Council recommendations, are neither goods nor services. Exempt supplies under Section 11 remain supplies.

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