Schedule Iii

SCHEDULE III
[See 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.
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, subject to clause (b) of paragraph 5 of Schedule II, sale of building.
6. Actionable claims, other than 1[specified actionable claims].
2[7. Supply of goods from a place in the non-taxable territory to another place in the non-taxable
territory without such goods entering into India.
8. (a) Supply of warehoused goods to any person before clearance for home consumption;
3[(aa) Supply of goods warehoused in a Special Economic Zone or in a Free Trade Warehousing
Zone to any person before clearance for exports or to the Domestic Tariff Area;]
(b) Supply of goods by the consignee to any other person, by endorsement of documents of title to
the goods, after the goods have been dispatched from the port of origin located outside India but before
clearance for home consumption.]
4[9. Activity of apportionment of co-insurance premium by the lead insurer to the co-insurer for the
insurance services jointly supplied by the lead insurer and the co-insurer to the insured in co-insurance
agreements, subject to the condition that the lead insurer pays the central tax, the State tax, the Union
territory tax and the integrated tax on the entire amount of premium paid by the insured.
10. Services by insurer to the reinsurer for which ceding commission or the reinsurance commission
is deducted from reinsurance premium paid by the insurer to the reinsurer, subject to the condition that the
central tax, the State tax, the Union territory tax and the integrated tax is paid by the reinsurer on the gross
reinsurance premium payable by the insurer to the reinsurer, inclusive of the said ceding commission or
the reinsurance commission.]
Explanation 5[1.]—For the purposes of paragraph 2, the term “court” includes District Court, High
Court and Supreme Court.
5[Explanation 2.––For the purposes of 3[clause (a) of] paragraph 8, the expression “warehoused
goods” shall have the same meaning as assigned to it in the Customs Act, 1962 (52 of 1962).]

1. Subs. by Act 30 of 2023, s. 4, for “lottery, betting and gambling” (w.e.f. 1-10-2023).
2. Ins. by Act 31 of 2018, s. 32 (w.e.f. 1-7-2017).
3. Ins. by Act 7 of 2025, s. 133 (w.e.f. 1-7-2017).
4. Ins. by Act 15 of 2024, s. 149 (w.e.f. 1-11-2024).
5. Numbered and- ins by Act 31 of 2018, s. 32 (w.e.f. 1-2-2019).
IndiaCode

1[Explanation 3.—For the purposes of clause (aa) of paragraph 8, the expressions “Special
Economic Zone”, “Free Trade Warehousing Zone” and “Domestic Tariff Area” shall have the same
meanings respectively as assigned to them in section 2 of the Special Economic Zones Act, 2005 (28 of
2005).]

1. Ins. by Act 7 of 2025, s. 133 (w.e.f. 1-7-2017).
IndiaCode