Schedule III to CGST Act 2017:

Activities or Transactions which shall

be treated neither as a Supply of
Goods nor a Supply of Services
 Negative List
SR. PROVISION ANALYSIS
NO
1. Services by an employee to the Relief has been
employer in the course of or in given in a case
relation to his employment. where an employer
gifts his employee
and the value of gift
is less than Rs.
50,000. It is not
considered as
Supply.
2. Services by any court or Tribunal
established under any law for the
time being in force
 Negative List
SR. PROVISION ANALYSIS
NO
3 (a) The functions performed by :-
Members of Parliament, Members of State
Legislature, Members of Panchayats,
Members of Municipalities and
Members of other local authorities;
3(b) The duties performed by any person who holds Duties performed by
any post in pursuance of the provisions of President of India, Vice
the Constitution in that capacity President of India,
Chief Justice, Chief
Election Commissioner,
etc(salary is free from
GST)
3(c) The duties performed by any person as a CBDT- Chairman,
Chairperson or a Member or a Director in a body members- appointed
established by the Central Government or a State by Govt
Government or local authority and who is not
deemed as an employee before the commencement
SR. NO PROVISION ANALYSIS
4. Services of funeral, burial,
crematorium or
mortuary including transportati
on of the deceased
5. Sale of land and sale of But it is subject to stamp duty
building where entire
consideration has been received
after issuance of completion
certificate from a competent
authority (where such
certificate required) or after its
first occupation, whichever is
earlier (refer schedule II – 5b)
SR. NO PROVISION ANALYSIS

6. Actionable claims, other than lottery, betting and gambling

lottery, betting and gambling are subject to GST
Eg of Actionable claims
Debentures, Bills of Exchange,
FD Receipt, lottery, betting and
gambling , etc.
7. Merchanting Trade Transactions 7-8 clauses inserted by CGST
Supply of goods from a place in Amendment Act 2018,
the non-taxable territory to applicable w.e.f. 01.02.2019
another place in the non-
taxable territory without such
goods entering into India.
In Indian Context, the trade is called Merchanting Trade
when,
• The supplier of goods will be resident in one foreign
country
• The buyer of goods will be resident in another foreign
country
• The merchant or the intermediary will be resident in India

• In simple terms, Merchanting transaction is one which

involves shipment of goods from one foreign country to
another foreign country involving an Indian Intermediary.
Hence, It is also called Intermediary Trade.
Merchanting Trade /Intermediary
Trade
SR. NO PROVISION ANALYSIS

8(a) Supply of warehoused goods to the supply of goods before

any person before clearance clearance from the warehouse
for home consumption would not be subject to IGST
and same would be levied and
collected only when the
warehoused goods are cleared
for home consumption from the
custom bonded warehouse.
8(b) High Sea Sales : – 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.