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Chapter 4: Supply
Important provisions of CGST ACT
Section 7 Meaning and scope of Supply
Schedule I Activities to be treated as supply even if made without consideration
Schedule II Activities or transactions to be treated as supply of goods or as supply of
services
Schedule III Activities or transactions which shall be treated neither as supply of goods nor
as supply of services.
Section 8 Composite and Mixed Supplies
Important provisions of IGST Act
Section 7 Inter State Supply
Section 8 Intra State Supply

Meaning of Supply [Section 7 of CGST]

7(1) 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;
(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 .- 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;
(c) the activities specified in Schedule I, made or agreed to be made without a
consideration.
Activities to be treated as supply of goods or supply of services [Sec. 7(1A)]
7(1A) where certain activities or transactions constitute a supply Section 7(1), they shall be
treated either as supply of goods or supply of services as referred to in Schedule II.
Activities neither supply of goods nor supply of services [Sec. 7(2)]
7(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.
Government power to notify transactions as supply of Goods or Services [Sec 7(3)]
(3) Subject to the provisions of 6[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.

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Schedule – I Schedule – II Schedule – III

(Deemed Supply) (Supply of Goods or Service) (No Supply)
Activities to be treated as supply Activities or transactions to be Activities or transactions neither
even if made without treated as supply of goods or supply of Goods nor supply of
consideration supply of services. services.
1. Permanent Transfer or 1. Transfer of 1. Services by Employee to
disposal of Business Assets (a) Title(ownership) in goods G Employer
where ITC has been availed. (b) Right in goods without 2. Services by court / Tribunal
transfer of title in goods S
2. Supply between
(c) Title in goods at future dateG 3. Services by
 Deemed Distinct Person 2. Land and Building M.P. / M.L.A / Panchayat
(i.e., Stock Transfer) (a) Lease/tenancy/licence to
occupy Land S Constitutional Post holders
 Related person (i.e., gifts
to employees) (b) Lease/Letting of building S Chairman/Member/Director
3. Treatment or Process on of Government bodies
3. Supply of Goods between another’s goods S
Principal and Agent or vice 4. Transfer of Business Assets 4. Services related to Burial /
versa. (when Agent issues (a) Permanent Tfr/Disposal G Crematorium / Mortuary
invoice in his own name) (b) put to pvt use or made 5. Sale of Land and Building
4. Import of services available to any person for
6. Actionable Claims (other
non-business use S
 Related person (c) Where any person ceases to
than specified actionable
claims)
 Establishment Outside be a taxable person all
India business goods shall be 7. Merchant Trading
deemed to be supplied G 8. High Sea Sale (sale before
Exceptions clearing for home
Transfer as going concern, consumption)
and
Carried by personal Bond to Bond Transfer
representative (sale of warehoused goods
5. Supply of Services [a to f] before clearing for home
(a) Renting Immovable Property consumption.
(b) Const. of complex/building
or civil structure Except
where full consideration is
received after issuance of
CC or first occupation
whichever is earlier
(c) Temporary tfr. or use of IPR
(d) Development, upgradation
etc., of IT software
(e) agreeing to the obligation to
refrain from an act, or to
tolerate an act or a
situation, or to do an act;
and
(f) tfr of right to use any goods

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6. Composite Supply
(a) Works Contract S
(b) Supply of food or any article
or non-alcoholic drink for
human consumption S
A Meaning of goods and services
Goods [Sec. 2(52)] Services [Sec. 2(102)]
"goods" means every kind of movable property "services" means anything other than goods,
other than money and securities money and securities
but includes but includes
actionable claim (Sec 3 of TPA), activities relating to the use of money or
growing crops, grass and things attached to or its conversion by cash or by any other mode,
forming part of the land which are agreed to from one form, currency or denomination to
be severed before supply or under a contract another form, currency or denomination
of supply; for which a separate consideration is charged;
(102A) "specified actionable claim" means the [Explanation.- For the removal of doubts, it is
actionable claim involved in or by way of— hereby clarified that the expression "services"
(i) betting; (ii) casinos; (iii) gambling; includes facilitating or arranging
(iv) horse racing; (v) lottery; or transactions in securities;]
(vi) online money gaming.]
"money"[Sec. 2(75)] means the Indian legal tender or any foreign currency, cheque,
promissory note, bill of exchange, letter of credit, draft, pay order, traveller cheque, money
order, postal or electronic remittance or
any other instrument recognised by the Reserve Bank of India when used as a consideration to
settle an obligation or exchange with Indian legal tender of another denomination
but shall not include any currency that is held for its numismatic value;

Some Important Points

Money Transactions in money is neither goods nor service hence not subject to GST
(neither goods but interest (i.e., consideration for use of money) and loan processing is
nor services) service and subject to GST but interest is presently exempted except interest
on credit card. [Entry No. 27 of 12/2017 CT and 9/2017 IT]
P.O or D.D. making charges or Money changing or Foreign currency
conversion charges are service and subject to GST. But
There is an exemption of GST on service for money changing between
Banks and authorized dealers.
Securities Since securities are neither goods nor services therefore their sale and
(neither goods purchase is not liable to GST but services of facilitating and arranging
nor services) securities are service hence brokerage / commission is liable to GST.
Lending of securities: Lending of securities does not amount to its sale and
hence it is a service and liable to GST (under reverse charge)

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Actionable Actionable claims are goods and hence liable to GST but Sch III para 6
Claims (goods) exempts actionable claims from GST except Lottery, Betting and Gambling.
Land (not goods Since land is immovable property excluded from goods but covered in
but covered under service is liable to GST but Schedule III para 5 exempts sale of land from
service def.) GST.
Building Building is immovable property hence excluded from goods but covered
(not goods but under service definition is liable to GST but Sch III para 5 excludes it from
covered under supply subject to Sch II para 5(b) which summarises as below:
service) Sale of Building where full consideration is received after issuance of
completion certificate or first occupation, whichever is earlier is outside the
scope of supply under GST but
Sale of Building where full or partial compensation is received before
issuance of completion certificate or first occupation whichever is earlier is
supply of service and hence liable to GST.
Immovable Plant Immovable Property is covered under the definition of service and qualify
& Machinery as supply under section 7.

B Consideration [Sec. 2(31)] includes-

(a) any payment made or to be made, (b) the monetary value of any act or
whether in money or otherwise, forbearance,
in respect of the supply of goods or services or both,
whether by the recipient or by any other person
but shall not include any subsidy given by the Central Government or a State Government;
Provided that a deposit given in respect of the supply of goods or services or both shall not be
considered as payment made for such supply unless the supplier applies such deposit as
consideration for the said supply;
Notes:
1. Donations received by charitable institutions from individual donors, without quid pro quo (i.e.,
reciprocal exchange of goods or services), where the purpose is philanthropic (i.e., no commercial
gain) and not an advertisement then it does not amount to consideration and hence no supply.
2. Art works sent by artists to galleries for exhibition is not a supply as no consideration flows from
the gallery to the artists. Artists give their work of art to galleries where it is exhibited for supply.
It is only when a buyer selects a particular art work displayed at the gallery, that the actual supply
takes place and applicable GST would be payable at the time of such supply.
3. ‘No Claim Bonus’ offered by an insurance company to the insured (does not amount to
consideration). No supply of service by the insured to the insurance company in lieu of ‘No Claim
Bonus’ offered by said insurance company to him.

C Business [Sec. 2(17)] includes:

(a) any trade, commerce, manufacture, profession, vocation, adventure, wager or any other
similar activity, whether or not for a pecuniary (monetary) benefit;

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(b) any activity or transaction in connection with or incidental or ancillary to sub-clause (a);
(c) any activity or transaction in the nature of sub-clause (a), whether or not there is volume,
frequency, continuity or regularity of such transaction;
(d) supply or acquisition of goods including capital goods and services in connection with
commencement or closure of business;
(e) provision by a club, association, society, or any such body (for a subscription or any other
consideration) of the facilities or benefits to its members;
(f) admission, for a consideration, of persons to any premises;
(g) services supplied by a person as the holder of an office which has been accepted by him in
the course or furtherance of his trade, profession or vocation;
(h) activities of a race club including by way of totalisator or a license to book maker or
activities of a licensed book maker in such club; and
(i) any activity or transaction undertaken by the Central Government, a State Government or
any local authority in which they are engaged as public authorities;

[Sec. 7(1)(b)]: import of services for a consideration whether or not in the course or furtherance
of business; This is the only exception to the condition of supply being made in course or
furtherance of business. Persons importing services for personal purposes shall also be liable to
GST on a reverse charge basis.
Import of goods is liable to IGST and is charged and collected by Customs under Customs Act.

[schedule I]: Activities specified in schedule I treated as supply even though they are made or
agreed to be made without consideration [Sec 7(1)(c)]
(1) Permanent transfer or disposal of business assets where input tax credit (ITC) has
been availed on such assets. However this will not cover permanent transfer of
(i) Business assets on which ITC is blocked under GST: or
(ii) Business assets though eligible for ITC, ITC has not been availed by the
registered person.
e.g., Donation of old assets to charitable organization or donation of goods (cloth) by
retailer or Goods taken away by the proprietor for personal uses.
(2) Supply of goods or services or both without any consideration between related persons
or between distinct persons as specified in section 25, when made in the course or
furtherance of business shall be treated as supply.
Note: Stock transfer or Branch transfer to DDP qualify as supply.
Gifts by employer to employee in excess of ₹50,000 constitute as supply.
(3) Supply of goods
(a) By a principal to his agent where the agent undertakes to supply such goods on
behalf of the principal; or
(b) By an agent to his principal where the agent undertakes to receive such goods on
behalf of the principal
Note: Above provisions will apply only when an agent issues invoices in its own name.
(4) Import of services by a person from a related person or from any of his other
establishments outside India, without any consideration in the course or furtherance of
business shall be treated as supply.

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Notes:
Related person [Explanation to sec. 15]
Persons shall be deemed to be ―related persons‖ if––
(i) such persons are officers or directors of one another‘s businesses;
(ii) such persons are legally recognised partners in business;
(iii) such persons are employer and employee;
(iv) any person directly or indirectly owns, controls or holds 25% or more of the outstanding
voting stock or shares of both of them;
(v) one of them directly or indirectly controls the other (e.g., holding-subsidiary);
(vi) both of them are directly or indirectly controlled by a third person;
(vii) together they directly or indirectly control a third person; or
(viii) they are members of the same family;
Note: Sole agent / sole distributor / Sole concessionaire of others are also related person.

Meaning of Family [Sec 2(49)]: Family means

(i) the spouse and children of the person; and
(ii) the parents, grand-parents, brothers and sisters of the person if they are wholly or mainly
dependent on the said person.

Meaning of Distinct Person & establishment of distinct person:

Distinct Person: A person who has obtained/is required to obtain more than one registration,
whether in one State/Union territory or more than one State/Union territory shall, in respect of
each such registration, be treated as distinct persons [Section 25(4)].
Establishment of Distinct Person:
Further, where a person who has obtained or is required to obtain registration in a State or Union
territory in respect of an establishment, has an establishment in another State or Union territory,
then such establishments shall be treated as establishments of distinct persons [Section 25(5)].
Explanation 1 to Sec. 8 of IGST Act.-For the purposes of this Act, where a person has,-
(i) an establishment in India and any other establishment outside India;
(ii) an establishment in a State or Union territory and any other establishment outside that State
or Union territory; or
(iii) an establishment in a State or Union territory and any other establishment registered within
that State or Union territory,
then such establishments shall be treated as establishments of distinct persons.

[SCHEDULE II]: ACTIVITIES OR TRANSACTIONS TO BE TREATED AS SUPPLY

OF GOODS OR SUPPLY OF SERVICES [SCHEDULE II]
S. No. Transaction or Activity Nature of Supply
1. Transfer
(a) transfer of the title in goods Supply of goods
(b) transfer of right in goods or of undivided share in goods Supply of services
without the transfer of title thereof,
(c) any transfer of title in goods under an agreement which Supply of goods.
stipulates that property in goods shall pass at a future date
upon payment of full consideration as agreed,
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E.g., Hire Purchase or Finance Lease.

2. Land and Building
(a) any lease, tenancy, easement, licence to occupy land; supply of services
E.g., Land used for circus, entertainment and parking purpose.
(b) any lease or letting out of the building including a Supply of services.
commercial, industrial or residential complex for business or
commerce, either wholly or partly,
3. Treatment or process
(Job Work) Any treatment or process which is applied to Supply of services.
another person's goods
4. Transfer of business assets
(a) where goods forming part of the assets of a business are Supply of goods
transferred or disposed of so as no longer to form part of those
assets, such transfer or disposal
(b) where goods held or used for the purposes of the business Supply of services
are put to any private use or are used, or made available to any
person for use, for any purpose other than a purpose of the
business, the usage or making available of such goods is a
(c) where any person ceases to be a taxable person, any goods Supply of goods
forming part of the assets of any business carried on by him
shall be deemed to be supplied by him in the course or
furtherance of his business immediately before he ceases to be
a taxable person, unless-
(i) the business is transferred as a going concern to another
person; or
(ii) the business is carried on by a personal representative who
is deemed to be a taxable person.
5. Supply of services
(a) renting of immovable property; Supply of services
(b) construction of a complex, building, civil structure or a part Supply of services
thereof, including a complex or building intended for sale to a
buyer, wholly or partly, except where the entire consideration
has been received after issuance of completion certificate,
where required, by the competent authority or after its first
occupation, whichever is earlier.
(c) temporary transfer or permitting the use or enjoyment of Supply of services
any intellectual property right; E.g., Permitting the use of
patent, copyright, Trademark shall amount to service.
(d) (customized software) development, design, programming, Supply of services
customization, adaptation, upgradation, enhancement,
implementation of information technology software;
(e) agreeing to the obligation to refrain from an act, or to Supply of services
tolerate an act or a situation, or to do an act; and
Example: Non-Compete agreement, allowing a hawker to
operate in front of the shop against payment by the hawker.

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(f) transfer of the right to use any goods for any purpose Supply of services
(whether or not for a specified period) for cash, deferred
payment or other valuable consideration.
Example: Renting of coffee machine, generator etc.
6. Composite supply
The following composite supplies shall be treated as a supply Supply of services
of services, namely:-
(a) works contract as defined in clause (119) of section 2; Supply of services
Works contract: means a contract for building, construction,
fabrication, completion, erection, installation, fitting out,
improvement, modification, repair, maintenance, renovation,
alteration or commissioning of any immovable property
wherein transfer of property in goods (whether as goods or in
some other form) is involved in the execution of such contract
[Section 2(119)].
e.g., Both pure labour contracts and works contracts involving
transfer of property are service under the GST law.
(b) (Restaurant and Outdoor Catering) supply, by way of or Supply of services
as part of any service or in any other manner whatsoever, of
goods, being food or any other article for human consumption
or any drink (other than alcoholic liquor for human
consumption), where such supply or service is for cash,
deferred payment or other valuable consideration.

[SCHEDULE III] ACTIVITIES OR TRANSACTIONS WHICH SHALL BE TREATED

NEITHER AS A SUPPLY OF GOODS NOR A SUPPLY OF SERVICES (Negative List)
1. Services by an employee to the employer in the course of or in relation to his
employment. Therefore salary, bonus, commission, gratuity, perquisites are not supply.
Note:
Part-time directors are not employees therefore their services are within the scope of
supply. Non-Compete fee at the time of leaving the employment supply as it is not paid
as per the terms of the 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.

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5. Sale of land and, subject to clause (b) of paragraph 5 of Schedule II, sale of building
(i.e. in case, where entire consideration for sale of building received after issuance of
completion certificate or after its first occupation, whichever is earlier)
6. Actionable claims, other than specified actionable claims.
Means only lottery, betting and gambling are treated as supply. All other actionable
claims are outside the ambit of definition of supply.
Some of the other examples of actionable claims are: Right to recover insurance oney,
claim for arrears of rent, claims for future rents (if these can be assigned), unsecured
loans, unsecured debentures, bills of exchange, promissory notes, bank guarantee, ixed
Deposit Receipt, right to the benefit of a contract, etc.
7. (Merchant Trading) 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) (Bond to Bond Sale) Supply of warehoused goods to any person before clearance
for home consumption;
(c) (High Sea Sale) Supply of goods by the consignee to any other person, by
endorsement of documents of title to the goods(i.e., bill of lading), after the goods
have been dispatched from the port of origin located outside India but before
clearance for home consumption.

NON-SUPPLIES NOTIFIED VIDE NOTIFICATION

Government is empowered to notify the activities/ transactions undertaken by the Central
Government, a State Government or any local authority in which they are engaged as public
authorities as the activities/transactions which shall be treated neither as supply of goods nor as
supply of services.

Till now, following activities/ transactions have been notified under said clause:
(i) Activity in relation to Panchayat/Municipality functions: Services by way of any activity in
relation to a function entrusted to a Panchayat under article 243G of the Constitution or to a
Municipality under article 243 W of the Constitution are treated neither as a supply of goods nor
as a supply of service.
(ii) Grant of alcoholic liquor licence: Services by way of grant of alcoholic liquor licence by the State
Governments are treated neither as a supply of goods nor as a supply of service.
Such licence is granted against consideration in the form of licence fee or application fee or by
whatever name it is called. Grant of licence for alcoholic liquor This special dispensation is
applicable only to supply of service by way of grant of liquor licenses by the State Governments
as an agreement between the Centre and States.
Hence, this is not applicable/has no precedence value in relation to grant of other licenses and
privileges for a fee in other situations, where GST is payable.
It may be noted that services provided by the Government to business entities including by way
of grant of privileges, licences, mining rights, natural resources such as spectrum etc. against
payment of consideration in the form of fee, royalty etc. are taxable under GST.
Tax is required to be paid by the business entities on such services under reverse charge

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NON-SUPPLIES CLARIFIED BY WAY OF CIRCULAR

CBIC has clarified that following activities / transactions are non-supplies:
(i) Inter-State movement of various modes of conveyance Inter-State movement of various modes
of conveyance, between distinct persons including- Trains, Buses, Trucks, Tankers, Trailers,
Vessels, Containers, Aircrafts,
(a) carrying goods or passengers or both; or
(b) for repairs and maintenance,
[except in cases where such movement is for further supply of the same conveyance] shall be treated
‘neither as a supply of goods or supply of service’ and therefore not be leviable to IGST.
However, applicable CGST/SGST/IGST, as the case may be, shall be leviable on repairs and
maintenance done for such conveyance [Circular No. 1/1/2017 IGST dated 07.07.2017].
(ii) Inter-State movement of rigs, tools and spares, and all goods on wheels [like cranes]
Above circular shall mutatis mutandis apply to inter-State movement of rigs, tools and spares, and
all goods on wheels [like cranes], [except in cases where movement of such goods is for further
supply of the same goods], such inter-State movement shall be treated ‘neither as a supply of goods
or supply of service,’ and consequently no IGST would be applicable on such movements. In this
context, it is also reiterated that applicable CGST/SGST/IGST, as the case maybe, is leviable on
repairs and maintenance done for such goods [Circular No. 21/21/2017 GST dated 22.11.2017].

CLARIFICATIONS BY CBIC ON SUPPLY

Clarification of issues pertaining to Del-credere agent (DCA)
A question was posed by the industry - whether supply between a principal and a Del-credere agent
would also get covered under Schedule I. The Government clarified the doubt of the industry by
way of following clarification:
What is meant by a DCA?
In commercial trade parlance, a DCA is a selling agent who is engaged by a principal to assist in
supply of goods or services by contacting potential buyers on behalf of the principal. The factor
that differentiates a DCA from other agents is that the DCA guarantees the payment to the supplier.
 In such scenarios where the buyer fails to make payment to the principal by the due date, DCA
makes the payment to the principal on behalf of the buyer (effectively providing an insurance
against default by the buyer), and for this reason the commission paid to the DCA may be
relatively higher than that paid to a normal agent.
 In order to guarantee timely payment to the supplier, the DCA can resort to various methods
including extending short-term transaction-based loans to the buyer or paying the supplier
himself and recovering the amount from the buyer with some interest at a later date. This loan
is to be repaid by the buyer along with an interest to the DCA at a rate mutually agreed between
DCA and buyer.

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Clarification of issues pertaining to Del-credere agent (DCA)

1. Whether a DCA falls under the ambit of agent under Para 3 of Schedule I?
Whether or not the DCA will fall under the ambit of agent under Para 3 of Schedule-I depends
on the following possible scenarios:
(A) In case where the invoice for supply of (B) In case where the invoice for supply of
goods is issued by the supplier (principal) goods is issued by the DCA in his own
to the customer, either himself or through name, the DCA would fall under the ambit
DCA, the DCA does not fall under the of agent.
ambit of agent.
Whether the temporary short-term transaction Where DCA is an agent under Para 3 of
based loan extended by the DCA to the Schedule I and makes payment to the principal
recipient (buyer), for which interest is charged on behalf of the buyer and charges interest to
by the DCA, is to be included in the value of the buyer for delayed payment along with the
goods being supplied by the supplier value of goods being supplied, whether the
(principal) where DCA is not an agent under interest will form a part of the value of supply
Para 3 of Schedule I? of goods also or not?
In such a scenario, following activities are In such a scenario following activities are
taking place: taking place:
1. Supply of goods from supplier (principal) 1. Supply of goods by the supplier
to recipient; (principal) to the DCA;
2. Supply of agency services from DCA to 2. Further supply of goods by the DCA to the
the supplier or the recipient or both; recipient;
3. Supply of extension of loan services by 3. Supply of agency services by the DCA to
the DCA to the recipient. the supplier or the recipient or both;
It is clarified that in cases where the DCA is 4. Extension of credit by the DCA to the
not an agent under Para 3 of Schedule I, the recipient.
temporary short-term transaction based loan It is clarified that in cases where the DCA is an
being provided by DCA to the buyer is a agent under Para 3 of Schedule I, the
supply of service by the DCA to the recipient temporary short-term transaction based credit
on Principal to Principal basis and is an being provided by DCA to the buyer no longer
independent supply. retains its character of an independent supply
Therefore, the interest being charged by the and is subsumed in the supply of the goods by
DCA would not form part of the value of the DCA to the recipient. It is emphasised that
supply of goods supplied (to the buyer) by the the activity of extension of credit by the DCA
supplier. to the recipient would not be considered as a
separate supply as it is in the context of the
supply of goods made by the DCA to the
recipient. It is further clarified that the value
of the interest charged for such credit would
be required to be included in the value of
supply of goods by DCA to the recipient as per
section 15(2)(d).

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2. Taxability of ‘tenancy rights’ under GST CBIC has clarified the taxability of ‘tenancy rights’
under GST as under:
Pagadi system, i.e. transfer of tenancy rights against tenancy premium.
In Pagadi system, the tenant acquires tenancy rights in the property against payment of tenancy
premium (pagadi). The landlord may be owner of the property, but the possession of the same lies
with the tenant. The tenant pays periodic rent to the landlord as long as he occupies the property.
The tenant also usually has the option to sell the tenancy right of the said property and in such a case
has to share a percentage of the proceeds with owner of land, as laid down in their tenancy agreement.
Alternatively, the landlord pays to tenant the prevailing tenancy premium to get the property
vacated. Such properties in Maharashtra are governed by Maharashtra Rent Control Act, 1999.

It has been clarified that the activity of transfer of tenancy right against consideration [i.e. tenancy
premium] is squarely covered under supply of service liable to GST. It is a form of lease or renting
of property and such activity is specifically declared to be a service in Para 2 of Schedule II i.e.
any lease, tenancy, easement, licence to occupy land is a supply of services.
Although stamp duty and registration charges have been levied on such transfer of tenancy rights,
it shall be still subject to GST. Merely because a transaction/supply involves execution of
documents which may require registration and payment of registration fee and stamp duty, would
not preclude them from the ‘scope of supply’ and from payment of GST.
The transfer of tenancy rights cannot be treated as sale of land/ building in para 5 of Schedule III.
Thus, it is not a negative list activity [this concept is discussed under next heading] and
consequently, a consideration for the said activity shall attract levy of GST.
To sum up, the activity of transfer of ‘tenancy rights’ to a new tenant against consideration in the
form of tenancy premium is taxable. However, renting residential dwellings for use as a residence
to an unregistered person is exempt. [Entry 12 of Notification No. 12/2017 CT (R) dated
28.06.2017.
Hence, grant of tenancy rights in a residential dwelling for use as residence dwelling against
tenancy premium or periodic rent or both (to an unregistered person) is exempt. As regards
services provided by outgoing tenant by way of surrendering the tenancy rights against
consideration in the form of a portion of tenancy premium is liable to GST.

3. Applicability on liquidated damages, compensation and penalty arising out of breach of contract
or other provisions of law: CBIC has clarified issues with respect to GST applicability on
liquidated damages, compensation and penalty arising out of breach of contract or other provisions
of law.

Clarification: “Agreeing to the obligation to refrain from an act or to tolerate an act or a situation,
or to do an act” has been specifically declared to be a supply of service in para 5(e) of Schedule
II if the same constitutes a “supply” within the meaning of the CGST Act.

A) Agreeing to the obligation B) Agreeing to the obligation C) Agreeing to the obligation

to REFRAIN from an act to tolerate an act or a to do an act
situation
non-compete agreements, activities such a shopkeeper where an industrial unit agrees
where one party agrees not to allowing a hawker to operate to install equipment for zero
compete with the other party from the common pavement in emission/discharge at the
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in a product, service or front of his shop against a behest of the RWA of a

geographical area against a monthly payment by the neighbouring residential
consideration paid by the hawker, complex against a
other party. consideration paid by such
a builder refraining from or an RWA tolerating the use RWA, even though the
constructing more than a of loudspeakers for early emission/discharge from the
certain number of floors, even morning prayers by a school industrial unit was within
though permitted to do so by located in the colony subject permissible limits and there
the municipal authorities, to the school paying an agreed was no legal obligation upon
against a compensation paid sum to the RWA as the individual unit to do so.
by the neighbouring housing compensation.
project, which wants to
protect its sunlight,
or an industrial unit refraining
from manufacturing activity
during certain hours against an
agreed compensation paid by
a neighbouring school, which
wants to avoid noise during
those hours.

Above three activities must comply with the following conditions:

(1) There must be an expressed or implied agreement or contract must exist
Above three activities must be under an “agreement” or a “contract” (whether express or implied)
to fall within the ambit of para 5(e) of Schedule II. In other words, There must be an expressed or
implied promise by the recipient of money to agree to do or abstain from doing something in return
for the money paid to him. Such a contract cannot be imagined or presumed to exist just because
there is a flow of money from one party to another.

(2) Consideration must flow in return to this contract/agreement

Some “consideration” must flow in return from the other party to this contract/agreement (the
second party) to the first party for such (a) refraining or (b) tolerating or (c) doing.

Taxability of some of the transactions has been discussed in detail as under:

(A) Liquidated Damages
It is common for the parties entering into a contract, to specify in the contract itself, the
compensation that would be payable in the event of the breach of the contract.

The taxability or otherwise of liquidated damages is clarified as under:

Liquidated damages cannot be said to be a consideration received for tolerating the breach or non-
performance of contract. They are rather payments for not tolerating the breach of contract.
Liquidated damages are a measure of loss and damage that the parties agree would arise due to
breach of contract. A contract is entered into for execution and not for its breach.

Where the amount paid as ‘liquidated damages’ is an amount paid only to compensate for injury,
loss or damage suffered by the aggrieved party due to breach of the contract and there is no
agreement, express or implied, by the aggrieved party receiving the liquidated damages, to refrain
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from or tolerate an act or to do anything for the party paying the liquidated damages, in such cases
liquidated damages are merely a flow of money from the party who causes breach of the contract
to the party who suffers loss or damage due to such breach. Such payments do not constitute
consideration for a supply and are not taxable.

Examples of such cases are: damages resulting from damage to property, negligence, piracy,
unauthorized use of trade name, copyright, penalty stipulated in a contract for delayed construction
of houses, forfeiture of earnest money by a seller in case of breach of ‘an agreement to sell’ an
immovable property by the buyer or by Government or local authority in the event of a successful
bidder failing to act after winning the bid, for allotment of natural resources.

On the contrary, consider the following examples:

A contract may provide that payment by the recipient of goods or services shall be made before a
certain date and failure to make payment by the due date shall attract late fee or penalty.
A contract for transport of passengers may stipulate that the ticket amount shall be partly or wholly
forfeited if the passenger does not show up.
A contract for package tour may stipulate forfeiture of security deposit in the event of cancellation
of tour by the customer.
A contract for lease of movable or immovable property may stipulate that the lessee shall not
terminate the lease before a certain period and if he does so he will have to pay certain amount as
early termination fee or penalty.
Some banks similarly charge pre- payment penalty if the borrower wishes to repay the loan before
the maturity of the loan period.
In the above examples, amounts paid for acceptance of late payment, early termination of lease or
for pre-payment of loan or the amounts forfeited on cancellation of service by the customer as
contemplated by the contract as part of commercial terms agreed to by the parties, constitute
consideration for the supply of a facility, namely, of acceptance of late payment, early termination
of a lease agreement, of prepayment of loan and of making arrangements for the intended supply
by the tour operator respectively.
Therefore, such payments, even though referred to as fine or penalty, are actually payments that
amount to consideration for supply, and are subject to GST, in cases where such supply is taxable.
Since these supplies are ancillary to the principal supply for which the contract is signed, they
shall be eligible to be assessed as the principal supply. Naturally, such payments will not be
taxable if the principal supply is exempt.

(B) Cheque dishonour fine/ penalty

The supplier wants payment to be received on time and does not want cheque to be dishonoured.
There is never an implied or express offer or willingness on part of the supplier that he would
tolerate deposit of an invalid, fake or unworthy instrument of payment against consideration in the
form of cheque dishonour fine or penalty.

The fine or penalty that the supplier or a banker imposes, for dishonour of a cheque, is a penalty
imposed not for tolerating the act or situation but a fine, or penalty imposed for not tolerating,
penalizing and thereby deterring and discouraging such an act or situation. Therefore, cheque
dishonor fine or penalty is not a consideration for any service and not taxable.
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(C) Penalty imposed for violation of laws

Penalty imposed for violation of laws such as traffic violations, or for violation of pollution norms
or other laws are also not consideration for any supply received and are not taxable.

Same is the case with fines, penalties imposed by the mining Department of a Central or State
Government or a local authority on discovering mining of excess mineral beyond the permissible
limit or of mining activities in violation of the mining permit. imposed by the mining Department
of a Laws are not framed for tolerating their violation.

They stipulate penalty not for tolerating violation but for not tolerating, penalizing and deterring
such violations. There is no agreement between the Government and the violator specifying that
violation would be allowed or permitted against payment of fine or penalty. There cannot be such
an agreement as violation of law is never a lawful object or consideration.

In short, fines and penalty chargeable by Government or a local authority imposed for violation
of a statute, bye-laws, rules or regulations are not leviable to tax.

(D) Forfeiture of salary or payment of bond amount in the event of the employee leaving the
employment before the minimum agreed period
The provisions for forfeiture of salary or recovery of bond amount in the event of the employee
leaving the employment before the minimum agreed period are incorporated in the employment
contract to discourage non-serious candidates from taking up employment.
The said amounts are recovered by the employer not as a consideration for tolerating the act of
such premature quitting of employment but as penalties for dissuading the non-serious employees
from taking up employment and to discourage and deter such a situation.
Further, the employee does not get anything in return from the employer against payment of such
amounts.
Therefore, such amounts recovered by the employer are not taxable as consideration for the
service of agreeing to tolerate an act or a situation.

(E) Late payment surcharge or fee The facility of accepting late payments with interest or late
payment fee, fine or penalty is a facility granted by supplier naturally bundled with the main
supply. It is not uncommon or unnatural for customers to sometimes miss the last date of payment
of electricity, water, telecommunication services etc. Almost all service providers across the world
provide the facility of accepting late payments with late fine or penalty.

Even if this service is described as a service of tolerating the act of late payment, it is an ancillary
supply naturally bundled and supplied in conjunction with the principal supply, and therefore
should be assessed as the principal supply.

Since it is ancillary to and naturally bundled with the principal supply such as of electricity, water,
telecommunication, cooking gas, insurance etc. it should be assessed at the same rate as the
principal supply. However, the same cannot be said of cheque dishonor fine or penalty as discussed
earlier.

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(F) Fixed charges for power

The price charged for electricity by the power generating companies from the State Electricity
Boards (SEBs)/DISCOMS or by SEBs/DISCOMs from individual customers has two components,
namely, a minimum fixed charge (or capacity charge) and variable per unit charge.
The fact that the minimum fixed charges remain the same whether electricity is consumed or not
or it is scheduled/consumed below the contracted or available capacity or a minimum threshold,
does not mean that minimum fixed charge or part of it is a charge for sometimes miss the last date
of payment of tolerating the act of not scheduling or consuming the minimum the contracted or
available capacity or a minimum threshold.
Both the components of the price, the minimum fixed charges/capacity charges and the
variable/energy charges are charged for sale of electricity and are thus not taxable as electricity is
exempt from GST.

(G) Cancellation charges

It is a common business practice for suppliers of services such as hotel accommodation, tour and
travel, transportation etc. to provide the facility of cancellation of the intended supplies within a
certain time period on payment of cancellation fee.
Cancellation fee can be considered as the charges for the costs involved in making arrangements
for the intended supply and the costs involved in cancellation of the supply, such as in cancellation
of reserved tickets by the Indian Railways.
Services such as transportation travel and tour constitute a bundle of services. All services such as
making available an online portal or convenient booking counters with basic facilities at the
transportation terminal or in the city, to reserve the seats and issue tickets for reserved seats much
in advance of the travel, giving preferred seats with or without extra cost, lounge and waiting room
facilities at airports, railway stations and bus terminals, provision of basic necessities such as soap
and other toiletries in the wash rooms, clean drinking water in the waiting area etc. form part and
parcel of the transportation service; they constitute the various elements of passenger
transportation service, a composite supply.
The facilitation service of allowing cancellation against payment of cancellation charges is also a
natural part of this bundle. It is invariably supplied by all suppliers of passenger transportation
service as naturally bundled and in conjunction with the principal supply of transportation in the
ordinary course of business.
Therefore, facilitation supply of allowing cancellation of an intended supply against payment
of cancellation fee or retention or forfeiture of a part or whole of the consideration or security
deposit in such cases should be assessed as the principal supply.

(61) Cancellation charges of railway tickets for a class would attract GST at the same rate as applicable
to the class of travel (i.e., 5% GST on first class or airconditioned coach ticket and nil for other
classes such as second sleeper class). Same is the case for air travel.
Accordingly, the amount forfeited in the case of non-refundable ticket for air travel or security
deposit or earnest money forfeited in case of the customer failing to avail the travel, tour operator
or hotel accommodation service or such other intended supplies should be assessed at the same
rate as applicable to the service contract, say air transport or tour operator service, or other such
services.

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Kinds of Supply

Tax liability on composite and mixed supplies [Sec. 8 of CGST].- The tax liability on a composite
or a mixed supply shall be determined in the following manner, namely:-
(a) a composite supply comprising two or more supplies, one of which is a principal supply,
shall be treated as a supply of such principal supply; and
(b) a mixed supply comprising two or more supplies shall be treated as a supply of that
particular supply which attracts the highest rate of tax.
Interpretation
If composite supply If mixed supply
Treat it as supply of principal supply Treat it as supply of that supply which attracts
highest rate of tax

Meaning of Composite and Mixed Supply [Sec. 2]

Composite supply [Sec 2(30)]: Mixed supply [Sec 2(74)]
means a supply made by a taxable person to a means two or more individual supplies of
recipient, goods or services, or any combination thereof,
 consisting of two or more taxable supplies made in conjunction with each other by a
of goods or services or both, or any taxable person
combination thereof,  for a single price where such supply
 which are naturally bundled and supplied
in conjunction with each other in the  does not constitute a composite supply.
ordinary course of business,
one of which is a principal supply;
Meaning of
Principal supply [Sec 2(90)]: means the supply of goods or services which constitutes the
predominant element of a composite supply and to which any other supply forming part of that
composite supply is ancillary;
Taxable supply [Sec 2(108)]: means a supply of goods or services or both which is leviable to
tax under this Act (whether nil rated or exempt);
Non-taxable supply [Sec 2(78)]: means a supply of goods or services or both which is not
leviable to tax under this Act or under the Integrated Goods and Services Tax Act; (e.g., liquor
and petroleum products)
Note:
Works contract and restaurant services are classic examples of composite supplies, but the
GST law identifies both as supply of services [Schedule II to the CGST Act] and chargeable to
specific rate of tax mentioned against each of such services (works contract or restaurant).

Generally following supplies are bundled as composite supply.

Healthcare services with medicines; sale of goods with packing, insurance and transportation; Sale
of goods with installation; coaching services with study materials; Hotel Accommodation with
breakfast; transportation services with food and lounge etc.,
Illustrations.-

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 Where goods are packed and transported with insurance, the supply of goods, packing
materials, transport and insurance is a composite supply and supply of goods is a principal
supply;
 Garment Manufacturer entered into a contract with cherry Ltd. for supply of readymade shirts
packed in designer boxes at cherry Ltd.’s outlet. Further, cherry Manufacturers would also get
them insured during transit. In this case, supply of goods, packing materials, transport &
insurance is a composite supply wherein supply of goods is principal supply.
 When a consumer buys a television set and he also gets a mandatory warranty and a
maintenance contract with the TV, this supply is a composite supply. In this example, supply
of TV is the principal supply, warranty and maintenance services are ancillary.
 A travel ticket from Mumbai to Delhi may include service of food being served on board, free
insurance, and the use of the airport lounge. In this case, the transportation of passengers
constitutes the pre-dominant element of the composite supply and is treated as the principal
supply and all other supplies are ancillary.

How to determine whether the services are bundled in the ordinary course of business?
Whether the services are bundled in the ordinary course of business or not, would depend upon
the normal or frequent practices followed in the area of business to which services relate. Such
normal and frequent practices adopted in a business can be ascertained from several indicators
some of which are listed below:
The perception of the consumer or the service recipient - If large number of service recipient of
such bundle of services reasonably expect such services to be provided as a package, then such a
package could be treated as naturally bundled in the ordinary course of business. E.g., Mobile
phone is always sold with battery.
Majority of service providers in a particular area of business provide similar bundle of services.
e.g., Bundle of services of catering on board and services of transport by air is a bundle offered by
a majority of airlines.
The nature of the various services in a bundle of services. If the nature of services is such that
one of the services is the main service and the other services combined with such service are in the
nature of incidental or ancillary services which help in better enjoyment of a main service, then it
would be treated as services bundled in the ordinary course of business.
E.g., Service of stay in a hotel is often combined with provision of breakfast and dinner provided
free of cost during the stay. Such service is an ancillary service to the provision of hotel
accommodation and the resultant package would be treated as services naturally bundled in the
ordinary course of business.
Other illustrative indicators, not determinative but indicative of bundling of services in the
ordinary course of business are:
✓ There is a single price or the customer pays the same amount, no matter how much of the
package they actually receive or use.
✓ The elements are normally advertised as a package.
✓ The different elements are not available separately.
✓ The different elements are integral to one overall supply. If one or more is removed, the nature
of the supply would be affected.

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CBIC, in the following cases, has clarified issues as to whether the given supplies are composite
supply and if yes, what constitutes the principal supply in the given composite supply:
1. Printing industry issues: The printing industry in India in particular faced a dilemma in
determining whether the nature of supply provided was that of goods or services or if it would be
a composite supply and in case it is, then what would constitute the principal supply.
Thus, it is clarified that supply of books, pamphlets, brochures, envelopes, annual reports, leaflets,
cartons, boxes etc. printed with logo, design, name, address or other contents supplied by the
recipient of such printed goods, are composite supplies and the question, whether such supplies
constitute supply of goods or services would be determined on the basis of what constitutes the
principal supply.
In the case of printing of books, pamphlets, brochures, annual reports, and the like, where only
content is supplied by the publisher or the person who owns the usage rights to the intangible
inputs while the physical inputs including paper used for printing belong to the printer, supply of
printing [of the content supplied by the recipient of supply] is the principal supply and therefore
such supplies would constitute supply of service.
In case of supply of printed envelopes, letter cards, printed boxes, tissues, napkins, wall paper etc.
by the printer using its physical inputs including paper to print the design, logo etc. supplied by
the recipient of goods, predominant supply is supply of goods and the supply of printing of the
content [supplied by the recipient of supply] is ancillary to the principal supply of goods and
therefore such supplies would constitute supply of goods.
2. Food supplied to the patients; Food supplied to the in-patients as advised by the
doctor/nutritionists is a part of composite supply of health care and not separately taxable. Other
supplies of food by a hospital to patients (not admitted) or their attendants or visitors are taxable.
3. Activity of bus body building: In the case of bus body building, there is supply of goods and
services. Thus, classification of this composite supply, as goods or service would depend on which
supply is the principal supply which may be determined on the basis of facts and circumstances of
each case.
4. Retreading of tyres: In retreading of tyres, which is a composite supply, the pre-dominant element
is process of retreading which is a supply of service. Rubber used for retreading is an ancillary
supply. Supply of retreaded tyres, where the old tyres belong to the supplier of retreaded tyres, is
a supply of goods. Retread tyres are revamped tyres on which the worn out tread (the part of the
tyre that makes contact with the surface of the road) is replaced using new tread.

MIXED SUPPLIES two or more individual supplies of goods or services, or any combination
thereof, made in conjunction with each other by a taxable person for a single price where such
supply does not constitute a composite supply [Section 2(74)]. The individual supplies are
independent of each other and are not naturally bundled.

How to determine if a particular supply is a mixed supply?:

A supply can be a mixed supply only if it is not a composite supply. As a corollary, it can be said
that if the transaction consists of supplies not naturally bundled in the ordinary course of business,
then the possibility of it being a mixed supply needs to be checked. Once the amenability of the
transaction as a composite supply is ruled out, and a single consideration is charged for the entire

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supply of different components, it would be treated as a mixed supply, classified in terms of supply
of goods or services attracting highest rate of tax.

Examples of Mixed Supply:

A supply of a package consisting of canned foods, sweets, chocolates, cakes, dry fruits, aerated
drinks and fruit juices when supplied for a single price is a mixed supply. Each of these items can
be supplied separately and is not dependent on any other. It shall not be a mixed supply if these
items are supplied separately;

A shopkeeper selling storage water bottles along with refrigerator for a single price. Bottles and
the refrigerator can easily be priced and sold, independently, and are not naturally bundled. So,
such supplies are mixed supplies.

A house is given on rent through a single rent deed - one floor of which is to be used as residence
and the other for housing a printing press, at a lump sum rent amount. Such renting for two different
purposes is not naturally bundled in the ordinary course of business. Said supplies are mixed
supply.

How to determine the tax liability on mixed supplies?:

A mixed supply comprising of two or more supplies shall be treated as supply of that particular
supply that attracts highest rate of tax.

E.g., Sringaar Enterprises supplies 10,000 kits (at ₹ 50 each) amounting to ₹ 5,00,000 to Raghav
General Store. Each kit consists of 1 shampoo, 1 face wash and 1 kajal pencil.
It is a mixed supply and is treated as supply of that particular supply which attracts highest tax
rate. Assuming that the rate of tax applicable on shampoo is 18%, on face wash is 28% and on
kajal pencil is 12%, in the given case, highest tax rate [viz. face wash] @ 28% will be charged on
the entire value of ₹ 5,00,000. More than one supply made together and taxed at the individual
rates.

There can also be a case where an activity/transaction involves more than one supply of goods
or services or both, but neither they are composite supplies nor can be categorised as mixed
supplies, that is, all supplies carry independent significance.
In such a case, if separate consideration is indicated against each supply, each such supply shall
be charged at the respective rate applicable to that particular supply.
E.g., In case of servicing of cars involving supply of both goods (spare parts) and services (labour)
where the value of goods and services are shown separately, the goods and services would be liable
to tax at the rates as applicable to such goods and services separately.

Clarification on Sales promotion schemes A number of sales promotion schemes are commonly
employed by the businesses to increase sales volume or to encourage the use or trial of a product
or service so that new customers get attracted towards their products. – i.e. buy one soap and get
one soap free or get one tooth brush free along with the purchase of tooth paste.
As per section 7(1)(a), the goods or services which are supplied free of cost (without any
consideration) shall not be treated as “supply” except in case of activities mentioned in Schedule I.
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In view of the same, few sales promotion schemes have been examined as under:
Free samples and gifts: Samples which are supplied free of cost, without any consideration, do
not qualify as “supply” under GST, except where the activity falls within the ambit of Schedule I.
Buy one get one free offer: It may appear at first glance that in case of offers like “Buy One, Get
One Free”, one item is being “supplied free of cost” without any consideration. In fact, it is not an
individual supply of free goods, but a case of two or more individual supplies where a single price
is being charged for the entire supply. It can at best be treated as supplying two goods for the price
of one.
Taxability of such supply will be dependent upon as to whether the supply is a composite supply
or a mixed supply and the rate of tax shall be determined accordingly –

Intra-State and Inter-State Supply

Intra-State supply. [Sec. 8 of IGST Act] –
Subject to the provisions of place of supply (Section 10&12), supply of goods or supply of services
 where the location of the supplier and the place of supply of are
 in the same State or same Union territory
shall be treated as intra-State supply:
Provided that the following supplies shall not be treated as intra-State supply namely:-
(i) supplies to or by a Special Economic Zone developer or a Special Economic Zone unit;
(ii) goods imported into the territory of India till they cross the customs frontiers of India; or
(iii) supplies (goods) made to a tourist referred to in section 15.

Inter-State supply [Sec. 7 of IGST Act].-

[7(1)&(3)] Subject to the provisions of place of supply (Section 10&12), supply of goods or supply
of services, where the location of the supplier and the place of supply are in-
(a) two different States;
(b) two different Union territories; or
(c) a State and a Union territory,
shall be treated as a supply of goods or services in the course of inter-State trade or commerce.

[7(2)&(4)] Supply of goods (till they cross the customs frontiers of India) and supply of services,
 imported into the territory of India,
shall be treated to be a supply in the course of inter-State trade or commerce.

[7(5)] Supply of goods or services or both,-

(a) (export) when the supplier is located in India and the place of supply is outside India;
(b) to or by a Special Economic Zone developer or a Special Economic Zone unit; or
(c) (residuary) in the taxable territory (i.e., India), not being an intra-State supply and not
covered elsewhere in this section,
shall be treated to be a supply of goods or services in the course of inter-State trade or commerce.

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Examination Questions

Q2). Answer each of the following questions:

XYZ Private Ltd., registered in Delhi, has transferred some goods to its branch, registered in West
Bengal, So that the goods can be sold from the branch. The goods have been transferred without
any consideration. The company believes that the transaction undertaking by it does not qualify as
supply, as no consideration is involved. Ascertain whether the transfer of goods by XYZ Private
Ltd. to its branch office qualifies as supply? (5)

Q2) Examine whether GST is Payable in the following cases. (10)

1) Miss Shriniti kaushik received interior decoration service for her residence located at Bandra,
Mumbai from Mr. Rachel of Sydney (Australia). The amount paid for the said service is 5,000
Australia dollars.
2) Miss Shriniti Kaushik received interior decoration service for her residence located at Bandra,
Mumbai from her BrotherMr. Varun residing in Sydney (wholly dependent on miss shriniti).
Further, Miss Shrinit did not pay any consideration for the said service.
3) Punjab National Bank charges cheque dishonor penalty of ₹700 per dishonor of cheque from
its account holders
4) Mr. Jayant takes a housing loan of ₹30 lakhs from Punjab National bank, Interest rate being
8.7%, Processing charges ₹15,000 payable at the time of taking loan. The Loan is scheduled
to be repaid in equal monthly EMI of ₹26,000 on 5th of every month.
5) The XYZ Ltd. paid electricity bill of ₹50,000 along with fee of ₹1,500 as paid after the due
date.
6) The Indian railways online train ticket booking platform IRCTC charges cancellation fee for
the cancellation of booked ticket before the date of journey.
Ans: 1) As per Section 7(1)(b) of CGST Act, Supply includes import of service for a consideration
whether or not in the course or furtherance of business.

Or

Differential between composite and mixed supplies of goods under GST. (5)

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