The Central Goods and Services Act, 2017 (CGST Act)

This is the current version of The Central Goods and Services Act 2017 (CGST Act 2017) and includes amendments introduced in The Central Goods and Services Tax (Amendment) Act. Click here for the original version of the Act.

CHAPTER III

LEVY AND COLLECTION OF TAX

1 Section 7 - Scope of supply

(1) 23 For the purposes of this Act, the expression “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 4

(c) the activities specified in Schedule I, made or agreed to be made without a consideration;* 5

6(1A) where certain activities or transactions, constitute a supply in accordance with the provisions of sub-section (1), they shall be treated either as supply of goods or supply of services as referred to in Schedule II.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.

(3) Subject to the provisions of sub-sections (1), (1A)8 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; or9

(b) a supply of services and not as a supply of goods.

This is the current version of The Central Goods and Services Act 2017 (CGST Act 2017) and includes amendments introduced in The Central Goods and Services Tax (Amendment) Act. Click here for the original version of the Act.

  1. Enforced with effect from 01-Jul-2017 

  2. Refer CGST Notification rate 14/2017 dated 28-Jun-2017, CGST Notification rate 16/2018 dated 26-Jul-2018. 

  3. Refer CGST Circular 1/2017 dated 07-Jul-2017, CGST Circular 21/2017 dated 22-Nov-2017, CGST Circular 57/2018 dated 04-Sep-2018, CGST Circular 73/2018 dated 05-Nov-2018, CGST Circular 80/2018 dated 31-Dec-2018, CGST Circular 121/2019 dated 11-Oct-2019. 

  4. Refer Retrospective amendment w.e.f 1st July 2017 inserted by CGST Amendment Act, 2018, CGST Notification 2/2019 dated 29-Jan-2019. 

  5. Refer Retrospective amendment w.e.f 1st July 2017 omitted by CGST Amendment Act, 2018, CGST Notification 2/2019 dated 29-Jan-2019. 

  6. Refer Retrospective amendment w.e.f 1st July 2017 omitted by CGST Amendment Act, 2018, CGST Notification 2/2019 dated 29-Jan-2019. 

  7. Refer Retrospective amendment w.e.f 1st July 2017 inserted by CGST Amendment Act, 2018, CGST Notification 2/2019 dated 29-Jan-2019. 

  8. Refer CGST Notification rate 25/2019 dated 30-Sep-2019. 

  9. Refer Retrospective amendment w.e.f 1.7.2017 substituted by CGST Amendment Act, 2018, CGST Notification 2/2019 dated 29-Jan-2019.