Examples of No Supply, Goods and Services Tax - GST

[Rajendra Prasad]

Dear Sir,

I have received the following amounts, Are they No supply ?

1. Maturity Proceeds of LIC Policy

2. Sale of Shares

3. Cash Gift from Brother

4. Sale of Land

5. Gas Subsidy

6. Sale of Agricultural Produce

7. Land & Buildings Gist from Mother

Posts / Replies

[Rajagopalan Ranganathan]

Sir,

According to Section 7 of CGST Act, 2017 “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;

Securities (Shares) are neither goods or service their sale will not attract gst.

According to sl. No. 2 of Schedule II of CGST Act, 2017-

(a) any lease, tenancy, easement, licence to occupy land is a supply of services;

(b) any lease or letting out of the building including a commercial, industrial or residential complex for business or commerce, either wholly or partly, is a supply of service.

Sale of land and building is neither supply of goods nor supply of service subject to para 5 (b) of Schedule II of CGST Act, 2017.

Agriculture produce is exempt from gst vide Notification No. 2/2017-Central Tax (Rate) dated 28.6.2017 as amended. Other items mentioned by you are not liable to gst.

[Atul Rathod]

Non gst -1,2,3,4,7

exempted:-5,6

[KASTURI SETHI]

Maturity Proceeds of LIC Policy are in the course of business or furtherance of business. Hence no supply.