Transactions that will be taxable as ‘supply’even if no consideration :
A supply specified in Schedule I, made or agreed to be made without a consideration is ‘supply’ for purpose of CGST Act – section 7(1)(c) of CGST Act.
Thus, these transactions will be subj ect to GST, even if there is no consideration. The valuation for purpose of GST will be as per GST Valuation Rules.
The Schedule I of CGST Act reads as follows –
Schedule I [section 7]- Activities to be treated as supply even if made without consideration
(1) Permanent transfer/disposal of business assets where input tax credit has been availed on such assets.
(2) Supply of goods or services between related persons, or between distinct persons as specified in section 25, when made in the course or furtherance of business.
(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 taxable person from a related person or from any of his other establishments outside India, in the course or furtherance of business.