Schedule III CGST Act 2017 – Activities or Transactions which shall be treated neither as a supply of goods nor a supply of Services

By | April 21, 2017
(Last Updated On: December 30, 2018)

Schedule III CGST Act 2017

Summary of Schedule III CGST Act 2017

Schedule III CGST Act 2017  deals with Activities or Transactions which shall be treated neither as a supply of goods nor a supply of Services

Schedule III CGST Act 2017

SCHEDULE III
[See section 7]
ACTIVITIES OR TRANSACTIONS WHICH SHALL BE TREATED NEITHER AS A
SUPPLY OF GOODS NOR A SUPPLY OF SERVICES

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. [ Note -1]

6. Actionable claims, other than lottery, betting and gambling.

2 [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 3 [ 1 ] .—For the purposes of paragraph 2, the term “court” includes District Court, High Court and Supreme Court.

4 [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 (52 of 1962).]

Notes on Schedule III CGST Act 2017

4. Inserted by the Central Goods and Services Tax (Amendment) Act, 2018, with effect from a date yet to be notified.

3. Explanation renumbered as Explanation 1 by the Central Goods and Services Tax (Amendment) Act, 2018, with effect from a date yet to be notified.

2. Inserted by the Central Goods and Services Tax (Amendment) Act, 2018, with effect from a date yet to be notified.

1.  The transfer of tenancy rights cannot be treated as sale of land or building declared as neither a supply of goods nor of services in para 5 of Schedule III to CGST Act, 2017 . Thus a consideration for the said activity shall attract levy of GST.vide Circular No 44/18/2018 CGST Dated 2nd May, 2018

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Schedule III CGST Act 2017

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