Section 7 of CGST Act,2017

Supply includes

1.  All forms of Supply of goods and services or both such as sale, transfer,barter,exchange, license, rental, lease or disposal made or agreed to made

• For a CONSIDERATION
• BY A PERSON (Taxable Person)
• IN THE COURSE OR FURTHERANCE OF BUSINESS

2. Import of Services

• For a CONSIDERATION
• Whether or not in the course of business

3. Activities as per Schedule I, agreed to be made WITHOUT CONSIDERATION {sec 7(1)(c)}

• Permanent transfer or disposal of business assets where the ITC has been availed on such assets
• Supply of goods/services between related persons or as specified in sec 25 made in course of business.
• Supply of goods by Principal to his agent or vice versa where the agent undertakes to supply such goods on behalf of principal
• Import of services by taxable person from related persons or from any of his establishment outside India COURSE OF BUSINESS

4.  Activities specified in Schedule II (sec 7(1A))

• Transfer of the title/right in the goods
• Lease, tenancy, letting out, licence to occupy Land and Building
• Treatment or supplies applies to another person’s goods
• Transfer of business assets
• Renting of immoveable properties, etc
• Composite supplies : Work Contract; Supply of goods/services for human consumption

Notwithstanding to sub section (1); Following shall not be treated as supply: (i.e Negative list of Services sec 7(2))

• Activities specified in Schedule III as under

5. Services by employee to employer
5. Services by court/tribunal
5. Functions performed by MPs MSL and members of such other authorities
5. Services of funeral, burial,crematorium or mortuary
6. Sale of land subject to sch II, sale of building
5. Actionable claims other than Lottery, betting and gambling

• Such activities as specified by CG/SG/or any local Authority