Examples of No Supply

[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

[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.

AI Summary

No supply under GST: definition, securities exclusion, land treatment and agricultural exemption determine taxability.
Whether receipts constitute a supply under GST is governed by Section 7's inclusive definition and Schedules I and II: leases/letting are services while sale of land/buildings is excluded from supply under Schedule II; securities are not goods or services so share sales do not attract GST; agricultural produce is exempt under the relevant tax notification. Applying these rules, transactions like sale of shares, gifts, insurance maturity proceeds, sale or gift of land and buildings are treated as non supply or outside GST, while property leasing is a taxable service.