has been widely defined under the Act (Indian Kanoon), including within its purview
sale, transfer, barter, exchange, license, rental, lease; import of services for
consideration irrespective of whether it was done in furtherance of business; and
in addition, the activities listed in Schedules I and II. Furthermore,
activities carried out by the Central Government, a State Government or any
local authority in their capacity as public authorities, are exempted from the purview.
In addition to that, activities enlisted in Schedule III are considered neither
as supply of goods nor as supply of services.
Activities to be treated as Supply even
when made without consideration
The permanent transfer or disposal of business
assets where input tax credit has been availed on these assets. Input Tax Credit is the credit of input tax
that a seller may avail, while the product moves from one level to the other in
the chain. (Manufacturer à
Supply of goods, services or both made in the
furtherance of business, when done between related or distinct persons.
However, gifts of up to Rs. 50000/- in value in a financial year by an employer
to an employee are exempted from this purview.
Where a Principal supplies goods to his agent
where the agent undertakes to supply such goods on behalf of the principal; or
where an agent supplies goods to his principal where the agent undertakes to
receive such goods on behalf of the principal.
Import of services by a taxable person from a
related person or from any of his other establishments outside India, in the
course or furtherance of business.
Activities to be
treated as Supply of goods or supply of services
Transfer of the title in goods is a supply of
Any transfer of right in goods or of undivided
share in goods without the transfer of title, is a supply of services.
Transfer of title in goods under an agreement
that property in goods would pass at a later date upon the payment of full
consideration, is a supply of goods.
Any lease, tenancy, easement, license to occupy
land is a supply of services; similarly, lease or letting out of the building
including a commercial, industrial or residential complex for business or
commerce, either wholly or partly, is a supply of services.
Any treatment or process which is applied to
another person's goods is a supply of services.
If goods forming part of the assets of a
business are transferred or disposed of at the directions of the person
carrying on the business,
it is to be treated as a supply of goods, irrespective of whether the transfer
is made for a consideration.
If goods held or used for the purposes of the
business are put to any private use or are used for any other purpose not
incidental to the business, under the direction of a person carrying on a
business, making available of such goods is a supply of service.
Renting of immovable property, construction of a
complex, building, civil structure, etc. is to be regarded as supply of
Supply of goods by any unincorporated association
or body of persons to a member thereof for cash, deferred payment or other
valuable consideration is regarded as a supply of goods.
neither as Supply of Goods nor as Supply of Services
Services by an employee to the employer in the
course of or in relation to his employment.
Services by any court or Tribunal established
under any law for the time being in force.
Functions performed by the Members of
Parliament, Members of State Legislature, Members of Panchayats, Members of Municipalities
and Members of other local authorities.
Duties performed by any person who holds any
post in pursuance of the provisions of the Constitution in that capacity.
Services of funeral, burial, crematorium or
mortuary including transportation of the deceased
Actionable claims, other than lottery,
betting and gambling.
Reference to the provisions of the Schedules help to
interpret the Section defining and elaborating what is regarded as Supply under