supply without consideration

[Madhavan iyengar]

After cgst amendment act 2018 wherein sec 7 clause (d) is deleted effective from 01/07/2017

query now any supply made with out consideration will it be liable to gst ( other than exceptions like import of services and transactions between related parties and items specified in schedule I without consideration)

[Rajagopalan Ranganathan]

Sir,

Clause (d) of Section 7 (1) of CGST Act, 2017 has been deleted retrospectively and new sub-section 1A has been inserted retrospectively. Therefore only activities mentioned in Schedule of CGST Act which are made or agreed to be made without consideration will b e treated as supply under CGST Act.. Sub-section (1A) specify supply of goods can be treated as supply of service or supply of service can be treated as supply of goods. Therefore any supply made without consideration as mentioned in Schedule I alone will be treated as taxable supply. Other supplies without consideration will not be treated as taxable supply.

AI Summary

Supply without consideration taxable only if listed in Schedule I or reclassified between goods and services under GST. Only activities or transactions listed in Schedule I that are made or agreed to be made without consideration are treated as supply for GST purposes; a retrospective provision permits treating a supply of goods as a supply of services or vice versa where applicable. Supplies outside Schedule I made without consideration are not taxable supplies under GST.