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

Under Section 7(3) of the CGST Act, 2017, the Government may, on the recommendations of the Council, specify by notification certain transactions. What may it specify?

Section 7(3) empowers the Government, on the Council's recommendation, to notify transactions to be treated as a supply of goods and not services, or a supply of services and not goods, subject to sub-sections (1), (1A) and (2). Exemption power sits separately in Section 11.

  1. ATransactions to be treated as a supply of goods and not as a supply of services, or as a supply of services and not as a supply of goodsCorrect
  2. BTransactions to be treated as neither supply nor exempt supply
  3. CTransactions to be treated as exports without consideration
  4. DTransactions to be exempted from registration

Explanation

Section 7(3) lets the Government, subject to sub-sections (1), (1A) and (2), specify transactions that are to be treated as supply of goods and not services, or supply of services and not goods. It does not create new exemptions; that power lies in Section 11.

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