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GST Law Schedule [ I to V ]

GST Law Schedule I

Matters To Be Treated As Supply Even If Made Without Consideration

[ IN TERMS OF CLAUSE (C ) OF SUBSECTION (1) OF SECTION 3]

  1. Permanent transfer/disposal of business assets where input tax credit has been availed on such assets.

  2. Supply of goods or services between related persons, or between distinct persons as specified in section 10, when made in the course or furtherance of business.

  3. Supply of goods—

    1. by a principal to his agent where the agent undertakes to supply such goods on behalf of the principal, or

    2. by an agent to his principal where the agent undertakes to receive such goods on behalf of the principal.

  4. Importation of services by a taxable person from a related person or from any of his other establishments outside India, in the course or furtherance of business.

GST Law Schedule II

Matters To Be Treated As Supply Of Goods Or Services

  1. Transfer

    1. Any transfer of the title in goods is a supply of goods.

    2. Any transfer of goods or of right in goods or of undivided share in goods without the transfer of title thereof, is a supply of services.

    3. Any transfer of title in goods under an agreement which stipulates that property in goods will pass at a future date upon payment of full consideration as agreed, is a supply of goods.

  2. Land and Building

    1. Any lease, tenancy, easement, licence to occupy land is a supply of services.

    2. 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 services.

  3. Treatment or process

    1. Any treatment or process which is being applied to another person’s goods is a supply of services.

  4. Transfer of business assets

    1. Where goods forming part of the assets of a business are transferred or disposed of by or under the directions of the person carrying on the business so as no longer to form part of those assets, whether or not for a consideration, such transfer or disposal is a supply of goods by the person.

    2. Where, by or under the direction of a person carrying on a business, goods held or used for the purposes of the business are put to any private use or are used, or made available to any person for use, for any purpose other than a purpose of the business, whether or not for a consideration, the usage or making available of such goods is a supply of services.

    3. Where any person ceases to be a taxable person, any goods forming part of the assets of any business carried on by him shall be deemed to be supplied by him in the course or furtherance of his business immediately before he ceases to be a taxable person, unless—

      1. the business is transferred as a going concern to another person; or

      2. the business is carried on by a personal representative who is deemed to be a taxable person.

  1. The following shall be treated as “supply of service”

    1. renting of immovable property.

    2. construction of a complex, building, civil structure or a part thereof, including a complex or building intended for sale to a buyer, wholly or partly, except where the entire consideration has been received after issuance of completion certificate, where required, by the competent authority or before its first occupation, whichever is earlier.

Explanation.- For the purposes of this clause-

  1. the expression "competent authority" means the Government or any authority authorized to issue completion certificate under any law for the time being in force and in case of non-requirement of such certificate from such authority, from any of the following, namely:–

    1. an architect registered with the Council of Architecture constituted under the Architects Act, 1972; or

    2. a chartered engineer registered with the Institution of Engineers (India); or

    3. a licensed surveyor of the respective local body of the city or town or village or development or planning authority;

  2. the expression "construction" includes additions, alterations, replacements or remodelling of any existing civil structure;

    1. temporary transfer or permitting the use or enjoyment of any intellectual property right;

    2. development, design, programming, customisation, adaptation, upgradation, enhancement, implementation of information technology software;

    3. agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act;

    4. works contract including transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract;

    5. transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration; and

    6. supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink (other than alcoholic liquor for human consumption), where such supply or service is for cash, deferred payment or other valuable consideration.

  1. The following shall be treated as supply of goods

    1. supply of goods by any unincorporated association or body of persons to a member thereof for cash, deferred payment or other valuable consideration.

GST Law Schedule III

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;

    1. The duties performed by any person who holds any post in pursuance of the provisions of the Constitution in that capacity; or

    2. 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 by a foreign diplomatic mission located in India.

  5. Services of funeral, burial, crematorium or mortuary including transportation of the deceased.

GST Law Schedule IV

Activities or Transactions undertaken by the Central Government, a State Government or any Local Authority which shall be treated neither as a ‘Supply Of Goods’ nor A 'Supply Of Services'

  1. Services provided by a Government or local authority to another Government or local authority excluding the following services:

    1. services by the Department of Posts by way of speed post, express parcel post, life insurance and agency services;

    2. services in relation to an aircraft or a vessel , inside or outside the precincts of a port or an aircraft; or

    3. transport of goods or passengers.

  2. Services provided by a Government or local authority to individuals in discharge of its statutory powers or functions such as-

    1. issuance of passport, visa, driving licence, birth certificate or death certificate; and

    2. assignment of right to use natural resources to an individual farmer for the purpose of agriculture.

  3. Services provided by a Government or local authority or a governmental authority by way of:

    1. any activity in relation to any function entrusted to a municipality under article 243 W of the Constitution;

    2. any activity in relation to any function entrusted to a Panchayat under article 243 G of the Constitution;

    3. health care; and

    4. education.

  4. Services provided by Government towards-

    1. diplomatic or consular activities;

    2. citizenship, naturalization and aliens;

    3. admission into , and emigration and expulsion from India;

    4. currency , coinage and legal tender , foreign exchange;

    5. trade and commerce with foreign countries , import and export across customs frontiers , interstate trade and commerce; or

    6. maintenance of public order.

  5. Any services provided by a Government or a local authority in the course of discharging any liability on account of any tax levied by such Government or authority.

  6. Services provided by a Government or a local authority by way of - 

    1. tolerating non-performance of a contract for which consideration in the form of fines or liquidated damages is payable to the Government or the local authority under such contract; or

    2. assignment of right to use any natural resource where such right to use was assigned by the Government or the local authority before the 1st April, 2016:

    3. PROVIDED that the exemption shall apply only to service tax payable on one time charge payable, in full upfront or in installments, for assignment of right to use such natural resource:

  7. Services provided by Government by way of deputing officers after office hours or on holidays for inspection or container stuffing or such other duties in relation to import or export of cargo on payment of Merchant Overtime Charges (MOT).

  8. Services provided by Government or a local authority by way of-

    1. registration required under any law for the time being in force; or

    2. testing, calibration, safety check or certification relating to protection or safety of workers, consumers or public at large, required under any law for the time being in force.

  9. Definitions:

    1. Governmental Authority means a board, or an authority or any other body established with 90% or more participation by way of equity or control by Government and set up by an Act of the Parliament or a State Legislature to carry out any function entrusted to a municipality under article 243W or a Panchayat under article 243G of the Constitution.

    2. Health care services means any service by way of diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognised system of medicines in India and includes services by way of transportation of the patient to and from a clinical establishment, but does not include hair transplant or cosmetic or plastic surgery, except when undertaken to restore or to reconstruct anatomy or functions of body affected due to congenital defects, developmental abnormalities, injury or trauma.

    3. Education services means services by way of—

        1. pre-school education and education up to higher secondary school or equivalent;

        2. education as a part of a curriculum for obtaining a qualification recognised by any law for the time being in force; or

        3. education as a part of an approved vocational education course.

GST Law Schedule V

'Person liable to be Registered'

  1. Every supplier shall be liable to be registered under this Act in the State from where he makes a taxable supply of goods and/or services if his aggregate turnover in a financial year exceeds twenty lakh rupees:

    PROVIDED that where such person makes taxable supplies of goods and/or services from any of the States specified in sub-clause (g) of clause (4) of Article 279A of the Constitution, he shall be liable to be registered if his aggregate turnover in a financial year exceeds ten lakh rupees.
    (Other than Special Category States)

  2. Every supplier shall be liable to be registered under this Act in the State from where he makes a taxable supply of goods and/or services if his aggregate turnover in a financial year exceeds ten lakh rupees:

    (Special Category States)
    Explanation 1.- The aggregate turnover shall include all supplies made by the taxable person, whether on his own account or made on behalf of all his principals.
    Explanation 2.- The supply of goods, after completion of job-work, by a registered job worker shall be treated as the supply of goods by the “principal” referred to in section 55, and the value of such goods shall not be included in the aggregate turnover of the registered job worker.

  3. The following persons shall not be liable to registration –

    1. any person engaged exclusively in the business of supplying goods and/or services that are not liable to tax or are wholly exempt from tax under this Act;

    2. an agriculturist, for the purpose of agriculture.

  4. Subject to the provisions of paragraph 1, every person who, on the day immediately preceding the appointed day, is registered or holds a license under an earlier law, shall be liable to be registered under this Act with effect from the appointed day.

  5. Where a business carried on by a taxable person registered under this Act is transferred, whether on account of succession or otherwise, to another person as a going concern, the transferee, or the successor, as the case may be, shall be liable to be registered with effect from the date of such transfer or succession.

  6. Notwithstanding anything contained in paragraph 1 and 3 above, in a case of transfer pursuant to sanction of a scheme  or an arrangement for amalgamation or, as the case may be, de-merger of two or more companies by an order of a High Court, the transferee shall be liable to be registered, where required, with effect from the date on which the Registrar of Companies issues a certificate of incorporation giving effect to such order of the High Court.

  7. Notwithstanding anything contained in paragraph 1 and 3 above, the following categories of persons shall be required to be registered under this Act:

    1. persons making any inter-State taxable supply, irrespective of the threshold specified under paragraph 1;

    2. casual taxable persons, irrespective of the threshold specified under paragraph 1;

    3. persons who are required to pay tax under reverse charge, irrespective of the threshold specified under paragraph 1;

    4. persons who are required to pay tax under sub-section (4) of section 8, irrespective of the threshold specified under paragraph 1;

    5. non-resident taxable persons, irrespective of the threshold specified under paragraph 1;

    6. persons who are required to deduct tax under section 46, whether or not separately registered under this Act;

    7. persons who are required to collect tax under 56, whether or not separately registered under the Act;

    8. persons who supply goods and/or services on behalf of other taxable persons whether as an agent or otherwise, irrespective of the threshold specified under paragraph 1;

    9. input service distributor, whether or not separately registered under the Act;

    10. persons who supply goods and/or services, other than supplies specified under sub-section (4) of section 8 , through such electronic commerce operator who is required to collect tax at source under section 56, irrespective of the threshold specified in paragraph 1;

    11. every electronic commerce operator, irrespective of the threshold specified in paragraph 1;

    12. every person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered taxable person; and

    13. such other person or class of persons as may be notified by the Central Government or a State Government on the recommendation of the Council.

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