TaxTMI 
TaxTMI 
TaxTMI 
Whether a sale without any consideration amounts to a valid sale under the Indian Contract Act and GST Laws?
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....hether a sale without any consideration amounts to a valid sale under the Indian Contract Act and GST Laws?<br>By: - YAGAY andSUN<br>Goods and Services Tax - GST<br>Dated:- 27-5-2025<br>Query: Whether a sale without any consideration amounts to a valid sale under the Indian Contract Act and GST Laws? Legal Analysis: 1. Under the Indian Contract Act, 1872 * As per Section 10 of the Indian Cont....
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....ract Act, a valid contract must be supported by consideration. * Section 25 states that agreements made without consideration are void, unless they fall under a few specific exceptions (like voluntary gifts in writing, compensation for past voluntary services, or promises made out of natural love and affection). Conclusion under Contract Act: A sale without consideration is not a valid contrac....
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....t of sale under the Indian Contract Act unless it qualifies as a gift or fits under the limited exceptions. 2. Under GST Law (CGST Act, 2017) * Under Section 7(1)(a) of the CGST Act, "supply" includes sale, transfer, barter, exchange, license, rental, lease, or disposal made for a consideration in the course or furtherance of business. * However, Section 7(1)(c) read with Schedule I of the CG....
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....ST Act covers certain activities that are deemed to be 'supply' even if made without consideration. These include: * Permanent transfer/disposal of business assets where ITC was availed * Supply between related/distinct persons in the course of business * Supply of goods/services by employer to employee beyond Rs.50,000 * Import of services from a related person or establishment outside In....
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....dia Conclusion under GST Law: Even if there is no consideration, the transaction may still be considered a "deemed supply" under Schedule I, making it liable to GST. Combined Legal Position: Law Without Consideration Status Indian Contract Act Not a valid sale Void (unless it's a gift or under exceptions) GST Law Can still be a taxable supply Yes, if covered under Schedule I ....
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....Final Conclusion: * Under Indian Contract Law, a sale without consideration is generally not valid and is treated as void, unless it qualifies under exceptions (e.g., gift). * Under GST, such a transaction can still be treated as a "supply" if it falls under Schedule I, even without consideration, and may attract GST accordingly.<br> Scholarly articles for knowledge sharing by authors, experts....
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...., professionals ....