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

Which of the following is a power conferred by Section 7(3) of the CGST Act, 2017, subject to sub-sections (1), (1A) and (2)?

Section 7(3) empowers the Government, on the Council's recommendation, to notify transactions as a supply of goods and not services, or a supply of services and not goods. The other options describe Sections 7(2)(b), 11(2) and 97.

  1. ANotifying activities that are neither goods nor services, as a public authority matter, on Council recommendation
  2. BSpecifying by notification, on Council recommendation, transactions to be treated as a supply of goods and not services, or of services and not goodsCorrect
  3. CGranting exemption from tax by special order in exceptional circumstances
  4. DDeciding on application whether an activity amounts to a supply

Explanation

Section 7(3) lets the Government, on Council recommendations, notify transactions to be treated as supply of goods and not services, or supply of services and not goods. Option A describes Section 7(2)(b), option C Section 11(2), and option D an advance ruling under Section 97.

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