Family in GST Law, Goods and Services Tax - GST

[VENU K]

In a father son transaction without consideration whom does Schedule 1 hit if one were to read Schedule 1 with explanation to Sec 15 as well as definition of Family in Sec 2(49)?

My father who is not dependent on me is not my family

Myself even if not dependent on my father is family to my Father.

So when we consider Schedule 1 transactions with respect to supplies without consideration it is with respect to which person ? Supplier or recipient ? or both ?

To make it more clear

1. If I supply something without consideration to my non dependent father he is not my family and as such not a related person as per GST Act. So is it possible to consider it as a deemed supply invoking Sch 1 ?

In my opinion it should be tested with respect to the supplier; that is the son. So his non-dependent father can receive something without consideration and still escape the deeming provisions of Schedule 1

Posts / Replies

[Sadanand Bulbule]

Dear Sir

Section 2[49] of the CGST Act reads as under:

(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;

In your case, admittedly father is not dependent on his son cum person as defined under the Act. As such I am of the opinion that, non-dependent father stands outside the definition of "family" and "related person". as well.

Section 2[49] and Section 15 have to be read conjointly to reach the clarity.

[KASTURI SETHI]

Sh. Sadanand Bulbule Ji & Sh.Veenu K Ji,

Dear Sirs, Section 2 (49)(ii) of CGST Act defines "family" as under :-

"(ii) the parents, grand-parents, brothers and sisters of the person if they are wholly or mainly dependent on the said person"

(i) The term, "wholly or mainly dependent" is not restricted to financial dependence only. The words, "wholly or mainly" signifies that it includes all kinds of dependence/support i.e. physical well-being and emotional well being also.

(ii) The issue has to be examined from this perspective also before arriving at correct, concrete and fool-proof decision.

This is my personal view and just for discussion sake with an intent to enrich my knowledge.

[Sadanand Bulbule]

Dear Sir. 

Agreed. Equally the authorities should also think in that direction.