**(a) Activities treated as supply without consideration, or not in the course of business:**
**1. Supplies treated as supply even without consideration (Schedule I of CGST Act, 2017):**
- **Permanent transfer or disposal of business assets:** Where input tax credit has been availed on such assets.
- **Supply of goods or services between related persons or distinct persons:** When made in the course or furtherance of business. (However, gifts not exceeding `50,000` in value in a financial year by an employer to an employee shall not be treated as supply).
- **Supply of goods between Principal and Agent:**
- By a principal to his agent where the agent undertakes to supply such goods on behalf of the principal.
- By an agent to his principal where the agent undertakes to receive such goods on behalf of the principal.
- **Import of services:** By a person from a related person or from any of their other establishments outside India, in the course or furtherance of business.
**2. Activities treated as supply even if not in the course or furtherance of business:**
- As per Section 7(1)(b) of the CGST Act, 2017, the **import of services for a consideration** is treated as supply, whether or not it is imported in the course or furtherance of business.
**(b) (i) Validity period of registration for CTP and NRTP:**
The certificate of registration issued to a Casual Taxable Person (CTP) and a Non-Resident Taxable Person (NRTP) shall be valid for:
- The period specified in the registration application, or
- **90 days** from the effective date of registration,
whichever is earlier.
The proper officer may, at the request of the said taxable person, extend the validity of registration by a further period not exceeding **90 days**, on sufficient cause being shown.
**(ii) Deficiencies in the erstwhile value-added taxation (VAT) that led to GST:**
- **Tax Cascading (Tax on Tax):** CENVAT (excise duty) was not credit-adjusted against State VAT. The CENVAT load on the goods was not removed, leading to cascading.
- **Non-integration of Goods and Services Taxes:** VAT was a tax on goods and Service Tax was on services. There was no integration, meaning service providers could not claim credit for VAT paid on inputs, and traders could not claim credit for service tax paid.
- **Double Taxation:** Certain transactions were taxed as both goods and services due to lack of clear distinction (e.g. software, licensing, restaurants).
- **Non-VATable CST:** Central Sales Tax (CST) was a non-VATable origin-based tax, which violated the destination-based consumption tax principle and caused tax cascading.
- **Other Local Taxes:** Several other state taxes like Luxury Tax, Entry Tax, Entertainment Tax, etc., were not integrated into the state VAT system.
**OR (b) Alternatives (Tax Invoice after delivery & batch/CKD/SKD transport):**
**1. Situations where tax invoice can be issued after delivery of goods:**
- **Supply of liquid gas:** Where the quantity at the time of removal from the place of business of the supplier is not known.
- **Transportation for reasons other than supply:** Such as transportation of goods for job work or on approval basis (where goods are sent under delivery challan and invoice is issued later upon acceptance).
- **Other supplies:** As may be notified by the Board.
**2. Provisions related to transportation in semi-knocked down (SKD) / completely knocked down (CKD) condition, or in batches/lots:**
- The supplier shall issue the complete invoice before dispatch of the first consignment.
- The supplier shall issue a delivery challan for each of the subsequent consignments, referencing the original invoice.
- A copy of the corresponding delivery challan shall accompany each consignment along with a duly certified copy of the invoice.
- The original copy of the invoice shall be sent along with the last consignment.