Section 7 of CGST Act 2017: Scope of Supply

Provisions under Section 7 of the Central Goods and Services Tax (CGST) Act, 2017 relating to “Scope of Supply”, are as under:

Section 7 of CGST Act 2017: Scope of Supply (CHAPTER III 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;

(b) import of services for a consideration whether or not in the course or furtherance of business; and

(c) the activities specified in Schedule I, made or agreed to be made without a consideration.

(d) omitted

(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 sub-sections (1), (1A) and (2), 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.

Amendments History:

1. Amendments made in 7 of the CGST Act 2017, vide Section 3 of the CGST (Amendment) Act, 2018: GOI Notification dt. 30 Aug. 2018, w.e.f. 1st July 2017:

a) the word ‘and’ inserted after the text ‘or furtherance of business’ in clause (b) of Section 7(1);

b) the word ‘and’ omitted after the text ‘a consideration’ in clause (c) of Section 7(1);

c) Clause (d) of Section 7(1) omitted;

d) Section 7(1A) inserted; and

e) in Section 7(3), the text ‘sub-sections (1) and (2)’ substituted with the text ‘sub-sections (1), (1A) and (2)’.

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Govt. has notified the Central Goods and Services Tax (CGST) Act, 2017 on 12 April, 2017 followed with various CBIC Notifications on commencement date for various Sections/ Provisions thereof from time to time. Govt. has further notified the Central Goods and Services Tax (CGST) (Amendment) Act, 2018 on 30 Aug. 2018 followed with CBIC Notification on commencement date of various Sections/ Provisions thereof from 1 Feb. 2019 vide Notification No. 2/2019 Central Tax dt. 29 Jan. 2019 except for amendments where the date of commencement is different from 1 Feb. 2019 and has specifically been mentioned in the CGST Amendment Act, 2018 itself.

Section-wise/ Rule-wise Text of GST Acts/ Rules
CGST Act/ DefinitionsCGST Rules
IGST Act/ DefinitionsIGST Rules
UTGST Act/ DefinitionsUTGST Rules

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One Response

  1. ASHOK KUMAR

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