No GST Applicable: Transactions Exempt Under Schedule III of CGST Act

As per schedule III of the CGST Act, read with Section 7(2), the following matters will not be treated as supply of goods or services.

Schedule III [Section 7] of CGST Act

Activities or transactions that shall be treated neither as the supply of goods nor a supply of services.

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

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

3. (a) The functions performed by the Members of Parliament, Members of State Legislature, Members of Panchayat, Members of Municipalities, and Members of other local authorities

(b) The duties performed by any person who holds any post in pursuance of the provision of the Constitution in that capacity.

(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 a Local authority and who is not deemed as an employee before the commencement of this clause [true indeed].

4. Services of funeral, burial, crematorium or mortuary including transportation of the deceased [small mercy after death].

5. Sale of land and, subject to para 5(b) of schedule II, sale of building [ para 5(b) covers sale of flat in a complex after completion or after its functional occupation].

6. Actionable Claims, other than (i) betting (ii) casinos (iii) gambling (iv) horse racing (v) lottery (vi) online money gaming

7. Supply of goods from a place in the non-taxable territory to another place in the non-taxable territory without such goods entering India.

8. (a) Supply of warehouse 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.

9. Activity of apportionment of co-insurance premium by the lead insurer to the co-insurer for the insurance services jointly supplied by the lead insurer and the co-insurer to the insured in coinsurance agreement, subject to the condition that the lead insurer pays the central tax, the state tax, the union territory tax, and the integrated tax is paid by the reinsurer on the gross reinsurance premium payable by the insurer to the reinsurer, inclusive of the said ceding commission or the reinsurance commission.