Provisions under the ‘Third Schedule (III)’ to the CGST Act 2017 regarding “Activities/ Transactions which shall not be treated as Supply of Goods or Services”, are as under:
Schedule III to CGST Act 2017: Activities or Transactions which shall be treated neither as a Supply of Goods nor a Supply of Services (See Section 7)
1. Services by an employee to the employer in the course of or in relation to his employment.
2. Services by any court or Tribunal established under any law for the time being in force.
3. (a) the functions performed by the Members of Parliament, Members of State Legislature, Members of Panchayats, Members of Municipalities and Members of other local authorities;
(b) the duties performed by any person who holds any post in pursuance of the provisions of the Constitution in that capacity; or
(c) the duties performed by any person as a Chairperson or a Member or a Director in a body established by the Central Government or a State Government or local authority and who is not deemed as an employee before the commencement of this clause.
4. Services of funeral, burial, crematorium or mortuary including transportation of the deceased.
5. Sale of land and, subject to clause (b) of paragraph 5 of Schedule II, sale of building.
6. Actionable claims, other than lottery, betting and gambling.
7. Supply of goods from a place in the non-taxable territory to another place in the non-taxable territory without such goods entering into India.
8. (a) Supply of warehoused goods to any person before clearance for home consumption; (b) Supply of goods by the consignee to any other person, by endorsement of documents of title to the goods, after the goods have been dispatched from the port of origin located outside India but before clearance for home consumption.
Explanation 1: For the purposes of paragraph 2, the term “court” includes District Court, High Court and Supreme Court.
Explanation 2: For the purposes of paragraph 8, the expression “warehoused goods” shall have the same meaning as assigned to it in the Customs Act, 1962.
Amendments History:
1. Paragraphs 7 & 8 inserted vide CGST (Amendment) Act, 2018: GOI Notification dt. 30 Aug. 2018, followed with CBIC Notification on commencement date of 1st Feb. 2019 vide Notification 2/2019 Central Tax dt. 29 Jan. 2019. Thus certain supplies in respect of Merchant trading, Sale of goods in customs bonded warehouse and High Seas sales inserted in Schedule.
2. Explanation 2 inserted vide CGST (Amendment) Act, 2018: GOI Notification dt. 30 Aug. 2018, followed with CBIC Notification on commencement date of 1st Feb. 2019 vide Notification 2/2019 Central Tax dt. 29 Jan. 2019.
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Govt. has notified the CGST Act, 2017 on 12th April, 2017, which has subsequently been amended through the CGST (Extension to J&K) Act 2017, Finance Act 2018, CGST Amendment Act 2018, Finance (No. 2) Act 2019, Finance Act 2020, Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance 2020. Further, CBEC/ CBIC has also issued various Notifications from time to time, relating to the commencement date of various Sections/ Provisions in the respective CGST/ Amendment Acts, wherever required.
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We have a building under re-construction. Three years ago, the builder had agreed to buy back our flat if the construction is not completed in 3 years. GST was not in existence at the time, and there was no mention in the agreement concerning the tax implication if the builder has to buy back the property from us. The builder now resists buying back, claiming he would have to pay GST on our flat since the construction is not yet completed, and CO has not yet come through. Is the builder liable to pay GST in this scenario if he buys back the flat from us under the existing agreement dating three years back?
As per my point of view it is mention in schedule II that if the asset is not complete for ready to sale then it would be treated as supply and it will attract GST as well. Here we have to make sure that we should received completion certificate from authority to avoid GST implication.
Whether a Government Organization (a University) can deduct TDS on invoice generated by another Government Organisation (a Govt. Department) who provides the service to University (like dispatch of Study material through Post) and raise the Monthly Bill (indicating GST amount @18%). University is making payment of bill raised after deducting the TDS amount. Is it right? If so under which Rule/ Section/ Order?
My wife purchased a built up flat in 1993 from Chandigarh housing board. The possession of completed flat was also taken. Due price enhancement a case is pending in Supreme court since 2007. In case one wishes to pay the balance amount that is the difference between original price and enhanced price. The CHB is charging difference in EMI plus penel rate of 24 % plus GST on difference in EMI and penalty amt at the rate of 18%. As per GST act , GST is not applicable on completed flats as it is neither a supply of good not service. The CHB is charging GST. Please guide we had purchased completed flat. Is charging GST on completed flats justified. Please quote rule.