As Per the Schedule III of Central Goods and Service Tax (CGST) Act 2017 certain service are excluded from Preview definition of Supply of Goods or Service i.e. those certain service are neither treated as Supply of Service or Supply of Goods.

 

Following Services are covered under Negative List as Per Schedule III of Central Goods and Service Tax (CGST) Act 2017: -

 

1.      Services by an employee to the employer in the course of or in relation to his employment: - Any Person who performs any service or activities during the course of his or her Employment will not treated as supply of service or supply of Goods. Any Service provided by Employee to Employer after Resignation or Retirement of Employee will not covered under Negative List and will be Taxable as Supply of Service or Supply of Goods by Other Person. Here Employment means there is Employer and Employee relationship exist i.e. Employer have full control over Employee. However any Service Provided by Employer to Employee will not be covered under Negative List, will be taxable as service or goods supplied to non – employee person. Any

   

2.      Services by any Court or Tribunal established under any law for the time being in force: - Any Service provided by any type of Court (District and Session Courts or Honorable High Courts and Honorable Court etc.) or Any type of Tribunal to any Person in course of Legal Proceedings will be covered under Negative List as Per schedule III of Central Goods and Service Tax (CGST) Act 2017 and will not be treated as Supply of Service or Supply of Goods.

 

 

3.      Functions performed by the MPs, MLAs, Members of municipality and Member of other local authorities: - Any Service or Activity or Function performed by Member of Parliament (MP) or Member of Legislation or Member of Municipality and by Member of any Other Local Authorities in capacity of post Hold by them or during the such post hold by them will be covered under Negative List as Per Schedule III of Central Goods and Service Tax (CGST) Act 2017 and will not treated as supply of Service or Supply of Goods. However any activity of any function by performed by Member of Parliament (MP) or Member of Legislation or Member of Municipality and by Member of any Other Local Authorities in Personal Capacity or any other capacity other than post hold by them shall be treated as Supply of Goods or Supply of Service and will not be covered under negative list as per as Per Schedule III of Central Goods and Service Tax (CGST) Act 2017.

 

4.      Duties performed by any person who holds any constitutional post: - Any Services Performed by any Person who holds Constitutional such Post of or Post by Union Public Service Commission (UPSC), Post of or Post by State Public Service Commission, Post of or Post by Joint State Public Service Commission, Post of or Post by The Comptroller and Auditor General of India Post of or Post by Election Commission of India, Post of or Post by Finance Commission of India, Post of or Post by National Commission for Scheduled Castes (NCSC), Post of or Post by National Commission For Scheduled Tribe, Post of or Post by Staff Selection Commission (SSC), Post of or Post by Central Vigilance Commission (CVC) etc. provided in capacity of Post held by them shall be covered under Negative List as Per Schedule III of Central Goods and Service Tax (CGST) Act 2017 and will not be treated as Supply of Service or Supply of Goods.

 

 

5.      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: - Any Activity or Function performed by  or Member or Director of Body Established by Central Government or State Government during period of such Post held by them will be covered under Negative List as Per Schedule III of Central Goods and Service Tax (CGST) Act 2017  and will not be treated as Supply of Goods or Supply of Service. However if such post held by any person is nature of Employment i.e. there exist relationship of Employer and Employee will be not covered here under Negative List but Covered under Negative List as per Clause I of Schedule III of Central Goods and Service Tax (CGST) Act 2017.    

 

6.      Services of funeral, burial, crematorium or mortuary including transportation of the deceased: - Any Service or Any Activity Performed by way of Funeral or burial or crematorium or mortuary or any allied service including Transportation of Dead Body by any person to any Person shall be covered under Negative List as Per Schedule III of Central Goods and Service Tax (CGST) Act 2017 and shall not be treated as Supply of Goods or Supply of Service.

 

7.      Sale of land and sale of building where entire consideration has been received after issuance of completion certificate: - Activity of Service of Selling Land or Building where Issuance of Certification of Completion is obtained before receiving entire Sale Consideration shall be covered under Negative List as Per Schedule III of Central Goods and Service Tax (CGST) Act 2017. However Any Activity of Selling of Building or Land where Certificate of Completion is not required to obtained or not obtained before receiving entire Sale Consideration shall not be covered under Negative List as Per Schedule III of Central Goods and Service Tax (CGST) Act 2017, will be taxable as other Supply of Goods or Supply of Service.  

 

8.      Actionable claims other than lottery, betting and gambling: - As Per sec 3 of Transfer of Property Act 1882 Actionable Claim means any claim to Debt which is not secured by way of Mortgage of Immovable Property or Hypothecation of Movable Property or Pledge of Movable Property or not secured by way of any Beneficial Interest either Actual or Constructive Passion in Movable Property. Any Actionable claim excluding Lottery or Betting or Gambling is covered under Negative List as Per Schedule III of Central Goods and Service Tax (CGST) Act 2017.

 

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