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Section7
The Central Goods and Services Tax Act, 2017

Scope of supply

In force Act 12 of 2017 As on 15 Oct 2026

Act 12 of 2017 Ministry Finance Enacted 12 Apr 2017 Cited by 4 provisions Instruments 9

Commencement. 22nd June, 2017 for sections 1, 2, 3, 4, 5, 10, 22, 23, 24, 25, 26, 27, 28, 29, 30, 139, 146 and 164 1st July, 2017 for sections 6 to 9, 11 to 21, 31 to 41, 42 (except proviso to sub-section (9) of S 42), 43 (except proviso to subsection (9) of S 43), 44 to 50, 53 to 138, 140 to 163, 165 to 174.

Section 7 of the Central Goods and Services Tax Act, 2017 deals with scope of supply. For the purposes of this Act, the expression "supply" includes--- (a) all forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business; The Act was enacted on 12 Apr 2017.

(1) For the purposes of this Act, the expression "supply" includes---

(a) all forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business;

1[(aa) the activities or transactions, by a person, other than an individual, to its members or constituents or vice-versa, for cash, deferred payment or other valuable consideration.

Explanation.---For the purposes of this clause, it is hereby clarified that, notwithstanding anything contained in any other law for the time being in force or any judgment, decree or order of any Court, tribunal or authority, the person and its members or constituents shall be deemed to be two separate persons and the supply of activities or transactions inter se shall be deemed to take place from one such person to another;]

(b) import of services for a consideration whether or not in the course or furtherance of business;2[and]

(c) the activities specified in Schedule I, made or agreed to be made without a consideration;3***

4* * * * *

2[(1A) Where certain activities or transactions constitute a supply in accordance with the provisions of sub-section (1), they shall be treated either as supply of goods or supply of services as referred to in Schedule II.]

(2) Notwithstanding anything contained in sub-section (1),---

(a) activities or transactions specified in Schedule III; or

(b) such activities or transactions undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities, as may be notified by the Government on the recommendations of the Council,

shall be treated neither as a supply of goods nor a supply of services.

(3) Subject to the provisions of 5[sub-sections (1), (1A) and (2)], the Government may, on the recommendations of the Council, specify, by notification, the transactions that are to be treated as---

(a) a supply of goods and not as a supply of services; or

(b) a supply of services and not as a supply of goods.

Section 7, The Central Goods and Services Tax Act, 2017 (Act 12 of 2017).

Cross-references

Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.

Referred to by 4

  1. Finance Act s. 118 Retrospective effect to notification issued under sub-section (2) of section 7 of Central Goods and Services Tax Act
  2. Finance Act s. 121 Retrospective effect to notification issued under clause (i) of section 20 of Integrated Goods and Services Tax read with subsection (2) of section 7 of Central Goods and Services Tax Act
  3. Finance Act s. 124 Retrospective effect to notification issued under clause (i) of section 21 of Union Territory Goods and Services Tax Act read with sub-section (2) of section 7 of Central Goods and Services Tax Act
  4. Integrated Goods and Services Tax Act s. 2 Definitions

Related judgements & precedents

These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.

  1. Gurdeep Singh Sachar v. Union of India

    High Court 30 Apr 2019 Persuasive (High Court) Reportable Cri.PIL (St.) 22/2019 (Bombay HC); Final Order/Judgment 30.04.2019

    Court's Decision & Legal Precedent

    Dream11 fantasy sports held game of skill not gambling/betting; pooled prize money is actionable claim other than lottery/betting/gambling under CGST Schedule III read with s.7(2), hence neither supply of goods nor services and outside Rule 31A(3). DATE VERIFIED Final Order reasons 2019-04-30 (order-2.pdf).

    On this section: s.7(2)/Schedule III — actionable claims other than lottery/betting/gambling not supply.

    Read the full order on eCourts India

The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.

Made under this section, and citing it

3 instruments state that it was made under this provision — the power to make it comes from here, so a change to any of them changes what this section requires in practice. Newest first.

Another 6 instruments name this provision in its title or its text without being made under it.

All subordinate legislation

Questions about Section 7

What have the courts held on Section 7 of the Central Goods and Services Tax Act?

Gurdeep Singh Sachar v. Union of India (30 Apr 2019) is the leading judgment on this section among those set out below: s.7(2)/Schedule III — actionable claims other than lottery/betting/gambling not supply.

How do I find court cases under Section 7 of the Central Goods and Services Tax Act?

In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: CGST Act 7, section 7 CGST Act, section 7 of the Central Goods and Services Tax Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 1 reported judgment on this section is set out on this page, beginning with Gurdeep Singh Sachar v. Union of India (30 Apr 2019).

What should I read with Section 7 of the Central Goods and Services Tax Act, and has it changed?

4 other provisions in this corpus refer back to it. The rules and notifications made under it are where it actually bites, and there are 3: most recently Notification No. 25/2019-Central Tax (Rate) dated 30.09.2019 (2019), then Notification No-16/2018 Central Tax (Rate) dated 26.07.2018 (2018), and 1 more.

When was Section 7 of the Central Goods and Services Tax Act enacted?

Section 7 of the Central Goods and Services Tax Act, cited as CGST Act 7, was enacted on 12 Apr 2017 as Act 12 of 2017. It is in force as at the date shown on this page.

Other sections of this Act

Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.