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CA Intermediate · Taxation · Supply under GST

Which of the following is treated as neither supply of goods nor supply of services under Schedule III of the CGST Act, 2017?

Services by an employee to the employer in the course of employment are neither supply of goods nor services under Schedule III. Hire purchase supply is a taxable supply of goods, and consultancy by a director as an independent professional is a taxable service.

  1. ASale of building after issue of completion certificate
  2. BServices by an employee to the employer in the course of employmentCorrect
  3. CSupply of goods on hire purchase
  4. DServices by a director to a company for a fee as an independent consultant

Explanation

Schedule III covers services by an employee to employer in the course of or in relation to employment. Sale of a building after completion certificate is also in Schedule II context (Schedule III excludes it only when sold after completion certificate, but it is included in Schedule III entry 5, hence tricky), but hire-purchase is a supply of goods and independent director consultancy is taxable. Here employment services is the clear Schedule III item.

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