First Schedule (I) to CGST Act 2017: Activities to be treated as Supply even if made Without Consideration

Provisions under First Schedule (I) to CGST Act 2017 regarding “Activities to be treated as Supply even if made Without Consideration”:

Schedule I: Activities to be treated as Supply even if made Without Consideration (See Section 7) [*1]

1. Permanent transfer or disposal of business assets where input tax credit has been availed on such assets.

2. Supply of goods or services or both between related persons or between distinct persons as specified in section 25, when made in the course or furtherance of business:

Provided that gifts not exceeding fifty thousand rupees in value in a financial year by an employer to an employee shall not be treated as supply of goods or services or both.

3. Supply of goods, –

(a) by a principal to his agent where the agent undertakes to supply such goods on behalf of the principal; or

(b) by an agent to his principal where the agent undertakes to receive such goods on behalf of the principal.

4. Import of services by a person [*2] from a related person or from any of his other establishments outside India, in the course or furtherance of business.

Notes (History of Amendments in Bare Text):

1. Schedule I to the CGST Act, 2017 introduced vide GOI Notification dated 12/04/2017.

2. The text ‘taxable person’ substituted with the text “person” in sub-section (4) of Schedule I, vide Section 30 of the CGST (Amendment) Act, 2018, followed with Notification 2/2019 on commencement date of 01/02/2019.