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Which of these activities is outside the scope of supply because of Schedule III to the CGST Act, 2017?

Question and options

Which of these activities is outside the scope of supply because of Schedule III to the CGST Act, 2017?

  1. Permanent transfer of business assets on which input tax credit was availed

  2. Import of services by a person from a related person abroad, without consideration

  3. Supply of goods by a principal to an agent who will sell them for the principal

  4. Services by an employee to the employer in the course of employment

Answer and explanation

Correct answer: D - Services by an employee to the employer in the course of employment

Paragraph 1 of Schedule III to the CGST Act treats services by an employee to the employer in the course of or in relation to employment as neither a supply of goods nor of services. The other three are supplies even without consideration under Schedule I, paragraphs 1, 3 and 4.

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