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Which of the following are treated as neither a supply of goods nor a supply of services under Schedule III to the CGST Act, 2017? Services by an employee to the employer in the course of or in…

Question and options

Which of the following are treated as neither a supply of goods nor a supply of services under Schedule III to the CGST Act, 2017?

  1. Services by an employee to the employer in the course of or in relation to employment
  2. Services by way of funeral, burial, crematorium or mortuary, including transportation of the deceased
  3. Services by a director to the company of which he is a director
  4. Actionable claims, other than specified actionable claims

  1. 2, 3 and 4 only

  2. 1, 3 and 4 only

  3. 1 and 2 only

  4. 1, 2 and 4 only

Answer and explanation

Correct answer: D - 1, 2 and 4 only

Schedule III to the CGST Act lists services by an employee to the employer in the course of employment, funeral, burial, crematorium and mortuary services, and actionable claims other than specified actionable claims as neither goods nor services. A director is not an employee merely by holding office, so a director's services to the company remain a taxable supply, on which the company pays tax under reverse charge.

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