THE CENTRAL GOODS AND SERVICES TAX ACT, 2017
LEVY AND COLLECTION OF TAX
(1)
For the purposes of this Act, the expression “supply”
includes––
(a) all forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business;
4[(aa) the activities or transactions, by a person, other than an individual, to its members or constituents or vice-versa, for cash, deferred payment or other valuable consideration.
Explanation.––For the purposes of this clause, it is hereby clarified that, notwithstanding anything contained in any other law for the time being in force or any judgment, decree or order of any Court, tribunal or authority, the person and its members or constituents shall be deemed to be two separate persons and the supply of activities or transactions inter se shall be deemed to take place from one such person to another;]
(b) import of services for a consideration whether or not in the course or furtherance of business; 2[and]
(c) the activities specified in Schedule I, made or agreed to be made without a consideration; [helldod 3 omit[and] helldod]
[helldod 3 omit[(d)
the activities to be treated as supply of goods
or supply of services as referred to in Schedule II.
2[(1A) where certain activities or transactions constitute a supply in accordance with the provisions of sub-section (1), they shall be treated either as supply of goods or supply of services as referred to in Schedule II.]
(2)
Notwithstanding anything contained in sub-section (1),––
(a) activities or transactions specified in Schedule III; or
(b)
such
activities or transactions undertaken by the Central Government, a State
Government or any local authority in which they are engaged as public
authorities, as may be notified by the Government on the recommendations of the
Council,
shall be treated neither as a supply of goods nor a supply of services.
(3) Subject
to the provisions of 1[sub-sections (1), (1A)
and (2)]
[helldod old[sub-sections (1) and (2),]
helldod] the Government may, on the
recommendations of the Council, specify, by notification, the transactions that
are to be treated as—
(a) a supply of goods and not as a supply of services; or
(b) a supply of services and not as a supply of goods.
2. Inserted Vide: Section 3 of CGST Amendment Act 2018 (w.e.f. 01.07.2017)
3. Omitted Vide: Section 3 of CGST Amendment Act 2018 (w.e.f. 01.07.2017)
4. Inserted Vide: Finance Act, 2021 (w.e.f. 01.07.2017) vide Notification No. 39/2021 – Central Tax dt. 21.12.2021