Text
The text below is the section as served by the CBIC tax information portal on 17 September 2026, with the portal's own amendment footnote markers (shown as small numerals before a bracket) and its footnotes.[1] The Act as published in the Gazette of India is the legal source.
Schedule I, verbatim (show)
SCHEDULE I. [ See section 7 ]
ACTIVITIES TO BE TREATED AS SUPPLY EVEN IF MADE WITHOUT CONSIDERATION
(1) Permanent transfer or disposal of business assets where input tax credit has been availed on such assets.
(2) Supply of goods or services or both between related persons or between distinct persons as specified in section 25, when made in the course or furtherance of business:
Provided that gifts not exceeding fifty thousand rupees in value in a financial year by an employer to an employee shall not be treated as supply of goods or services or both.
(3) Supply of goods-
(a) by a principal to his agent where the agent undertakes to supply such goods on behalf of the principal; or
(b) by an agent to his principal where the agent undertakes to receive such goods on behalf of the principal.
(4) Import of services by a 1[person] from a related person or from any of his other establishments outside India, in the course or furtherance of business.
1. Substituted for "taxable person" by s.30 of The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018) - Brought into force w.e.f. 01st February, 2019
Questions to answer on the file
Questions a reviewer answers from the engagement file, grouped by the part of the section they come from. They describe what the section asks; they do not decide it.
Scope Schedule I as a whole
Questions to answer on the file1 question
Permanent transfer or disposal of business assets paragraph 1
Questions to answer on the file4 questions
Supplies between related or distinct persons, and gifts to employees paragraph 2 with its proviso
Questions to answer on the file9 questions
Goods between a principal and his agent paragraph 3(a) and (b)
Questions to answer on the file5 questions
Import of services from a related person or another establishment outside India paragraph 4
Questions to answer on the file7 questions
Amendment history
The CBIC text carries 1 footnote. The table gives each in the source's own terms. Effective dates are as the footnotes state them.[1]
| Note | Change |
|---|---|
| 1 | Substituted for "taxable person" by s.30 of The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018) - Brought into force w.e.f. 01st February, 2019[2] |
Relationship with other provisions
| Provision | Connection | Words that tie them |
|---|---|---|
| Section 7 | Section 7 requires this provision | 7(1)(c) "the activities specified in Schedule I, made or agreed to be made without a consideration" |
| Section 7 | this provision requires Section 7 | the Schedule's heading "[ See section 7 ]"; the Schedule deems nothing by itself and is read only through section 7 |
| Section 15 | paragraph 2 defined by Section 15 | the Explanation to section 15 says who are "related persons" for the purposes of this Act; paragraph 2 "between related persons" |
| Section 25 | paragraph 2 defined by Section 25 | paragraph 2 "between distinct persons as specified in section 25" |
| Section 2 | paragraph 3 defined by Section 2 clauses (5) and (88) | paragraph 3(a) "by a principal to his agent"; clause (5) defines agent and clause (88) defines principal |
| Section 2 of the IGST Act, 2017 | paragraph 4 defined by Section 2 of the IGST Act, 2017 | "import of services" is not defined in this Act; clause (120) of section 2 carries over the meaning assigned in the Integrated Goods and Services Tax Act |
Circulars and notifications
Circulars and notifications in the CBIC repository that cite this section, newest first, by number, date and subject. A listing here does not say what an instrument decides; read the instrument.
Circulars (13)
| Number | Date | Subject |
|---|---|---|
| Circular No. 210/04/2024-GST | 26 June 2024 | Clarification on valuation of supply of import of services by a related person where recipient is eligible to full input tax credit. |
| Circular No. 218/12/2024-GST | 26 June 2024 | Clarification regarding taxability of the transaction of providing loan by an overseas affiliate to its Indian affiliate or by a person to a related person. |
| Circular No. 205/17/2023-GST | 31 October 2023 | Clarification regarding GST rate on imitation zari thread or yarn based on the recommendation of the GST Council in its 52ndmeeting held on 7th October, 2023. |
| Circular No. 204/16/2023-GST | 27 October 2023 | Clarification on issues pertaining to taxability of personal guarantee and corporate guarantee in GST |
| Circular No. 163/19/2021-GST | 6 October 2021 | Clarification regarding GST rates & classification (goods) based on the recommendations of the GST Council in its 45th meeting held on 17th September, 2021 at Lucknow-reg. |
| Circular No. 108/27/2019-GST | 18 July 2019 | which seeks to clarify issues regarding procedure to be followed in respect of goods sent / taken out of India for exhibition or on consignment basis for export promotion. |
| Circular No. 92/11/2019-GST | 7 March 2019 | Circular clarifying various doubts related to treatment of sales promotion scheme under GST |
| Circular No. 73/47/2018-GST | 5 November 2018 | Scope of principal and agent relationship under Schedule I of CGST Act, 2017 in the context of del-credre agent. |
| Circular No. 57/31/2018-GST | 4 September 2018 | Scope of Principal-agent relationship in the context of Schedule I of the CGST Act. |
| Circular No. 52/26/2018-GST | 9 August 2018 | Circular No. 52/26/2018-GST dated 09.08.2018 i.r.o. clarification regarding applicability of GST rates on various goods and services. |
| Circular No. 46/20/2018-GST | 6 June 2018 | Applicable GST rate on Priority Sector Lending Certificates (PSLCs), Renewable Energy Certificates (RECs) and other similar scrips -regarding. |
| Circular No. 16/16/2017-GST | 15 November 2017 | Clarifications regarding applicability of GST and availability of ITC in respect of certain services. |
| Circular No. 1/01/2017-IGST | 7 July 2017 | Clarification on Inter-state movement of various modes of conveyance, carrying goods or passengers or for repairs and maintenance- regarding. |
Notifications (4)
| Number | Date | Subject |
|---|---|---|
| Notification No. 19/2022-Central Tax | 28 September 2022 | Seeks to make amendments (Second Amendment, 2022) to the CGST Rules, 2017. |
| Notification No. 74/2018-Central Tax | 31 December 2018 | Fourteenth amendment to the CGST Rules, 2017. amended by a later instrument |
| Notification No. 49/2018-Central Tax | 13 September 2018 | Notification amending the CGST Rules, 2017 (Tenth Amendment Rules, 2018). |
| Notification No. 10/2017-Central Tax | 28 June 2017 | Seeks to amend CGST Rules notification no 3/2017-Central Tax dt 19.06.2017 amended by a later instrument |
Unsettled questions
The words of schedule i do not answer these questions. Where one decides a matter on the file, the answer depends on the position taken on it.
- What makes an activity in the course or furtherance of business where the connection to the business is indirect? Paragraph 2 and paragraph 4 both turn on the phrase and neither defines it. The position is proposed.
- Paragraph 1 reaches a "Permanent transfer" and a "disposal" and defines neither. The Act nowhere says whether a transfer under which the asset may come back, or may be recalled, is permanent.
- Paragraph 1 reads "Permanent transfer or disposal of business assets". It does not say whether the word "Permanent" qualifies both limbs, so that a disposal from which the asset may come back falls outside the paragraph, or only the first, so that any disposal is within it. The two readings decide opposite outcomes on the same facts, and the option list at records which limb the facts answer to without deciding between them.
- Paragraph 1 speaks of "business assets". The Act defines business in clause (17) of section 2 and goods in clause (52), but nowhere defines a business asset, so it does not say whether stock in trade given away is within the paragraph or only a capitalised asset is.
- The proviso removes "gifts not exceeding fifty thousand rupees in value in a financial year". It does not say what happens once the value passes that figure: whether the whole value of the gifts is then treated as a supply or only the value above the limit.
See also
- Section 7 of the CGST Act, 2017: scope of supply
- Section 25 of the CGST Act, 2017: procedure for registration
- Schedule II of the CGST Act, 2017: activities or transactions to be treated as supply of goods or supply of services
References
- Central Board of Indirect Taxes and Customs. "Schedule I. Activities to be treated as supply even if made without consideration". Central Goods and Services Tax Act, 2017, CBIC tax information portal, with amendment footnotes 1 to 1. Retrieved 17 September 2026.
- The Central Goods and Services Tax (Amendment) Act, 2018. Cited in CBIC footnote 1.
External links
- CGST Act, 2017, Schedule I on the CBIC tax information portal