Activities listed under schedule III of the CGST Act, 2017, is termed as negative list under GST. Activities in this schedule specifies transactions which shall be neither treated as supply of goods nor a supply of services. Below is a list of these activities;
- Services by an employee to the employer in the course of or in relation to his employment.
- Services by any court or tribunal established under any law for the time being in force. Court includes district court, the high court and supreme court.
- Functions performed by the members of Parliament, members of the state legislature, members of panchayats, members of municipalities and members of other local authorities.
- Duties performed by any person who holds any post in pursuance of the provisions of the constitution in that capacity.
- 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 a local authority and who is not deemed as an employee before the commencement of this clause.
- Services of funeral, burial, crematorium or mortuary including transportation of the deceased.
- Sale of land, and subject to para b of schedule II, sale of building.
- Actionable claims other than gambling, betting and gambling.
Apart from the above listed activities, following activities or transactions are notified by the government which shall be treated neither as a supply of goods nor a supply of services;
- As per notification number 14/2017 CT(R) dated 28.06.2017/notification number 11/2017 CT (R) dated 28.06.2017, services by way of any activity in relation to a function entrusted to a panchayat under article 243G of the constitution or to a municipality under article 243W of the constitution for the said purpose is not leviable to GST.
- Interstate movement of various modes of conveyance such as trains, buses, trucks, tankers, trailers, vessels, containers, aircrafts etc between distinct persons carrying goods or passengers or both or for repair and maintenance except in cases where such movement is for further supply of the same conveyance shall be treated neither as a supply of goods or supply of services and therefore not be leviable to IGST. However, applicable CGST/SGST/IGST, as the case may be, shall be leviable on repairs and maintenance done for such conveyance (circular number 1/1/2017 IGST dated 07.07.2017).
- Interstate movement of rigs, tools and spares and all goods on wheels like cranes except in cases where movement of such goods is for further supply of the same goods. However, applicable CGST/SGST/IGST, as the case may be, is leviable on repairs and maintenance done for such goods (circular number 21/21/2017-GST dated 22.11.2017.
Important points related to GST schedule III
- If an employee provides any services which are outside the ambit of employment for a consideration then it would qualify as supply.
- As per circular number 32/06/2018 GST dated 12.02.2018 consumer dispute redressal commission set up at national, state and district level are considered in the negative list, therefore fees paid by litigants while registering complaints to said commission are not leviable to GST. Even penalties paid to these commissions will not attract GST.
- Duties performed in the capacity of prime minister of India, President of India, Vice President of India, chief justice of India, speaker of the Lok sabha, chief election commission is not leviable to GST.
- This means, only activities relating to lottery, betting and gambling will be subject to GST.
- Para b of schedule II covers supply of building before completion or before occupancy.