Activities Which Are Not Supply under GST
Supply of goods or services is the taxable event under GST. In our blog on supply under GST, we have learnt about the activities which are considered as supply under GST. In this blog, let us understand the activities which are not supply under GST and hence, not taxable under GST.
1. Services by an employee to an employer in the course of employment
For example: An employee provides legal services to his employer as part of his employment in the organisation. Here, the provision of legal service by the employee is an activity which is not supply under GST.
2. Services by a court (District Court, High Court or Supreme Court) or Tribunal
3. Duties performed by MPs, MLA and others
The duties performed by
- Members of Parliament, state legislature, Panchayats, municipalities and other local authorities
- A person who holds a post under the provisions of the Indian Constitution.
For example: Services provides by way of employment in Election Commission of India, Law Commission of India, National Commission for Women, etc.
- Chairperson/Member/Director in a body established by the Government or a local authority and who is not an employee of the same
4. Services of funeral, burial, crematorium or mortuary including transportation of the deceased.
5. Sale of land and sale of building after completion
Sale of land and sale of building, where the entire consideration has been received after the completion certificate is issued or after its first occupation will not be a supply under GST. This means that if a building is sold during its construction period, then it will be treated as a supply under GST. However, if a building is sold after its completion or after its first occupation, then it will not be a supply and hence, will not be taxable under GST.
6. Actionable claims, other than lottery, betting and gambling.
Actionable claims are claims which can be enforced only by a legal action or suit.
For example: Book debts, bills of exchange, promissory notes, etc. These cannot be sold and hence, these will not be a supply under GST.
Hence, persons making the above supplies can note that these are activities which are not supply under GST and GST is not applicable on these supplies.
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Author: Anisha K Jose
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