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

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. 

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. 

Import of services by a [person] ¹ from a related person or from any of his other establishments outside India, in the course or furtherance of business. 

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¹ Substituted for the words "taxable person" vide “The Central Goods and Services Tax (Amendment) Act , 2018” dt. 30.08.2018.Effective from 01.02.2019.

Transfer

(a) any transfer of the title in goods is a supply of goods;

(b) any transfer of right in goods or of undivided share in goods without the transfer of title thereof, is a supply of services;

(c) any transfer of title in goods under an agreement which stipulates that property in goods shall pass at a future date upon payment of full consideration as agreed, is a supply of goods. 

Land and Building

(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 services. 

Treatment or process

Any treatment or process which is applied to another person's goods is a supply of services. 

Transfer of business assets

(a) where goods forming part of the assets of a business are transferred or disposed of by or under the directions of the person carrying on the business so as no longer to form part of those assets, [whether or not for a consideration] ¹, such transfer or disposal is a supply of goods by the person;

(b) where, by or under the direction of a person carrying on a business, goods held or used for the purposes of the business are put to any private use or are used, or made available to any person for use, for any purpose other than a purpose of the business, [whether or not for a consideration] ², the usage or making available of such goods is a supply of services;

(c) where any person ceases to be a taxable person, any goods forming part of the assets of any business carried on by him shall be deemed to be supplied by him in the course or furtherance of his business immediately before he ceases to be a taxable person, unless—

 (i) the business is transferred as a going concern to another person; or

 (ii) the business is carried on by a personal representative who is deemed to be a taxable person. 

^1,2 Ommitted vide Finance Act, 2020 (12 of 2020). Deemed to be ommitted from 1.7.2017.

Supply of services

The following shall be treated as supply of service, namely:—

(a) renting of immovable property;

(b) construction of a complex, building, civil structure or a part thereof, including a complex or building intended for sale to a buyer, wholly or partly, except where the entire consideration has been received after issuance of completion certificate, where required, by the competent authority or after its first occupation, whichever is earlier. 

 Explanation.—For the purposes of this clause—

 (1) the expression "competent authority" means the Government or any authority authorised to issue completion certificate under any law for the time being in force and in case of non-requirement of such certificate from such authority, from any of the following, namely:—

 (i) an architect registered with the Council of Architecture constituted under the Architects Act, 1972; or

 (ii) a chartered engineer registered with the Institution of Engineers (India); or

 (iii) a licensed surveyor of the respective local body of the city or town or village or development or planning authority;

 (2) the expression "construction" includes additions, alterations, replacements or remodelling of any existing civil structure;

(c) temporary transfer or permitting the use or enjoyment of any intellectual property right;

(d) development, design, programming, customisation, adaptation, upgradation, enhancement, implementation of information technology software;

(e) agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act; and

(f) transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration. 

Composite supply

The following composite supplies shall be treated as a supply of services, namely:—

(a) works contract as defined in clause (119) of section 2; and

(b) supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink (other than alcoholic liquor for human consumption), where such supply or service is for cash, deferred payment or other valuable consideration. 

[Supply of Goods

The following shall be treated as supply of goods, namely:—

Supply of goods by any unincorporated association or body of persons to a member thereof for cash, deferred payment or other valuable consideration.] ¹

¹ Ommitted vide Section 122 of 'The Finance Act 2021'. Deemed to have been omitted from 1.7.2017.

Services by an employee to the employer in the course of or in relation to his employment. 

Services by any court or Tribunal established under any law for the time being in force. 

Explanation 1.—For the purposes of paragraph 2, the term "court" includes District Court, High Court and Supreme Court. 

(a) the functions performed by the Members of Parliament, Members of State Legislature, Members of Panchayats, Members of Municipalities and Members of other local authorities;

(b) the duties performed by any person who holds any post in pursuance of the provisions of the Constitution in that capacity; or

(c) the duties performed by any person as a Chairperson or a Member or a Director in a body established by the Central Government or a State Government or local authority and who is not deemed as an employee before the commencement of this clause. 

Services of funeral, burial, crematorium or mortuary including transportation of the deceased. 

Sale of land and, subject to clause (b) of paragraph 5 of Schedule II, sale of building. 

Actionable claims, other than [specified actionable claims.] ¹

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¹ Substituted for the words "lottery, betting and gambling" vide The Central Goods and Services Tax (Amendment) Act, 2023 dt. 18.8.2023. Made effective from 1.10.2023 vide Notf. 48/2023-CT dt. 29.9.2023.

[Supply of goods from a place in the non-taxable territory to another place in the non-taxable territory without such goods entering into India.] ¹

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¹ Inserted vide “The Central Goods and Services Tax (Amendment) Act , 2018” dt. 30.08.2018. Deemed effective from 01.07.2017 vide Section 159 of the Finance Act 2023 vide Notif 28/2023-CT dated 31.7.2023. Earlier, it was effective from 1-2-2019 vide Central Goods and Services Tax (Amendment) Act, 2018.

[(a) Supply of warehoused goods to any person before clearance for home consumption;

(b) Supply of goods by the consignee to any other person, by endorsement of documents of title to the goods, after the goods have been dispatched from the port of origin located outside India but before clearance for home consumption.

Explanation 2 ––For the purposes of paragraph 8, the expression “warehoused goods” shall have the same meaning as assigned to it in the Customs Act, 1962.] ¹

¹ Inserted vide “The Central Goods and Services Tax (Amendment) Act , 2018” dt. 30.08.2018. Deemed effective from 01.07.2017 vide Section 159 of the Finance Act 2023 vide Notif 28/2023-CT dated 31.7.2023. Earlier, it was effective from 1-2-2019 vide Central Goods and Services Tax (Amendment) Act, 2018.