(a) Provisions Relating to Import of Services \u2013 Section 7(1)(b), 7(1)(c) and Schedule I of CGST Act, 2017
Section 7(1)(b) \u2013 Import of Services for Consideration:
As per section 7(1)(b), the term \u201csupply\u201d includes import of services for a consideration, whether or not in the course or furtherance of business.
This means even if a person imports services purely for personal purposes (not for business), it is treated as a \u201csupply\u201d and is subject to GST.
Key condition: There must be a consideration involved.
Section 7(1)(c) \u2013 Deemed Supply (Schedule I Entries):
As per section 7(1)(c), the activities specified in Schedule I are treated as supply even if made without consideration.
Schedule I \u2013 Import of Services Without Consideration:
Entry 4 of Schedule I states that 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, shall be treated as a supply even if made without consideration.
Summary Table:
| Scenario | Section | Consideration | Taxable as Supply? |
|---|---|---|---|
| Import of services by any person for personal use | 7(1)(b) | With consideration | Yes |
| Import of services by any person for business use | 7(1)(b) | With consideration | Yes |
| Import of services from related person / own establishment abroad, in course of business | 7(1)(c) r/w Schedule I | Without consideration | Yes |
| Import of services from related person / own establishment abroad, NOT in course of business | \u2014 | Without consideration | No |
(b)(i) Persons Exempted from Mandatory E-Invoicing Provisions
The following categories of persons are exempt from mandatory e-invoicing even if their turnover exceeds \u20b95 crore in any preceding financial year (from 2017-18):
1. Special Economic Zone (SEZ) units
2. Insurers
3. Banking companies or financial institutions, including NBFCs
4. Goods Transport Agencies (GTA) supplying services in relation to transportation of goods by road in a goods carriage
5. Suppliers of passenger transportation services
6. Persons supplying services by way of admission to exhibition of cinematograph films in multiplex screens
7. Government Departments
8. Local Authorities
(Note: Any two points may be mentioned as required by the question.)
(b)(ii) Circumstances under which Proceedings of GST Council shall NOT be Invalid
As per the provisions of the CGST Act, no act or proceedings of the Goods and Services Tax Council shall be invalid merely by reason of:
(a) Any vacancy in, or any defect in, the constitution of the Council; or
(b) Any defect in the appointment of a person as a Member of the Council; or
(c) Any procedural irregularity of the Council not affecting the merits of the case.
(b) ALTERNATIVE \u2013 Additional Accounts/Documents to be Maintained by an Agent [Rule 56 of CGST Rules, 2017]
An Agent as defined u/s 2(5) of the CGST Act, 2017 shall maintain the following additional accounts or documents:
(a) Particulars of authorisation received from each principal to receive or supply goods or services on behalf of such principal, separately.
(b) Particulars including description, value and quantity (wherever applicable) of goods or services received on behalf of every principal.
(c) Particulars including description, value and quantity (wherever applicable) of goods or services supplied on behalf of every principal.
(d) Details of accounts furnished to every principal.
(e) Tax paid on receipts or supply of goods or services effected on behalf of every principal.