Activities or Transactions

[VENU K]

What is the meaning of ACTIVITY and TRANSACTION as used in CGST ActSec 7

Sec 7(1)(aa) talks about Activities or Transactions

Sec 7(1)(c) Talks about Activities specified in Schedule I.

Sec 7(I)(A) again talks about Activities or Transactions and has a cross references to Schedule II. Interestingly Schedule II initially had a heading Activities to be treated as supply of goods or supply of services. But later Goods and Services Tax amendment Act 2018 retrospectively amended this w.e.f 1.07.2017 and included the word OR TRANSACTIONS.

Sec 7(2)(a) again talks about activities or transactions specified in Schedule III.

Sec 7 (3) gives power to central Government to specify certain ACTIVITIES only either as a supply of goods or as a supply of services.

Understanding this is a must because a word AND and another word OR used in law made a lot of difference as we learned in Safary Retreats.

[Shilpi Jain]

Finally in these kind of situations, even if these kind of references make a difference and the taxpayer is able to get a favaourable order from the SC, there will be an amendment in the law retrospectively to bring out what the CBIC thinks is the legislative intent of the legislature!!

[Ganeshan Kalyani]

Interesting point, Sir.

AI Summary

Activities or Transactions shaping GST classification - wording determines whether supplies are goods or services and affects regulatory scope. The repeated use of the phrase Activities or Transactions across the GST statute and its schedules determines whether economic engagements are treated as supplies and whether those supplies are characterised as goods or services; a retrospective amendment inserted 'or Transactions' into Schedule II, altering classification scope. The statute also vests executive authority to designate particular engagements exclusively as goods or services, so the interaction of schedule entries, conjunctive/disjunctive wording, and executive specification materially affects tax classification and compliance.