Activities which are neither supply of goods nor supply of services :
Present service tax law has concept of ‘negative list of services’. Similar concept has been introduced in Model GST Law.
As per Schedule III of CGST Act read with section 7(2)(a) of CGST Act, following matters will not be treated as supply of goods and services.Schedule III [Section 7]
Activities or transactions which shall be treated neither as a 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.
[Exp lanation – The term ‘Court’ includes District court, High Court and Supreme Court]
3. (a) The functions performed by the Members of Parliament, Members of State Legislature, Members of Panchayats, Members of Municipalities and Members of other local authorities (b) The duties performed by any person who holds any post in pursuance of the provisions of the Constitution in that capacity; or (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 local authority and who is not deemed as an employee before the commencement of this clause.
4. Services of funeral, burial, crematorium or mortuary including transportation of the deceased.
5. Sale of land and, subj ect to para 5(b) of Schedule II, sale of building.
6. Actionable claims, other than lottery, betting and gambling.