Under the CGST Act 2017, 'SUPPLY' under Section 7 includes:
Answer & Solution
Correct answer: B.
1. Section 7(1) CGST Act 2017 defines 'supply' as INCLUDING all forms of supply of goods or services or both — sale, transfer, barter, exchange, licence, rental, lease, or DISPOSAL — for a CONSIDERATION in the course or furtherance of business.
2. ALSO INCLUDED:
3. (i) Import of services for consideration (whether or not in business);
4. (ii) Activities specified in SCHEDULE I — even WITHOUT consideration (e.g., supplies between related persons or distinct persons);
5. (iii) Schedule II — classifies activities as goods or services (e.g., works contracts as service).
6. Section 7(2) EXCLUDES from supply: Schedule III activities (services of employees, court services, MP/MLA functions, etc.).
7. Hence option B is correct.
_Source: CS Executive Paper 4 Tax Laws (ICSI BoS) + Income Tax Act 1961 + CGST Act 2017 — Central Goods and Services Tax Act 2017, Section 7_
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