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b) Raman is an architect in Chennai. His brother who is settled in London is a well-known lawyer.
Raman has taken legal advice from him free of cost with regard to his family dispute.

c) Would your answer be different if in the above case, Raman has taken advice in respect of his
business unit in Chennai? [Study Mat]
Answer :-
1) Legal Provision:

Ü Section 25(4) of CGST Act, 2017 states that if more than one registration is obtained or is required
to be obtained by a person in one or more State, then for each of such registration, he shall be
treated as distinct persons.
Ü Section 7(1)(c) read with Para 2 of schedule I of CGST Act, 2017 states that supply of goods and/or

services between 'distinct persons' as specified in section 25, when made in the course or
furtherance of business shall be treated as supply even if made without consideration.
Discussion & Conclusion:
Ü In the given case, factory and depot of Sulekha Manufacturers are distinct persons.

Ü Therefore, supply of goods from Delhi factory of Sulekha Manufacturers to Mumbai Depot without
consideration, but in course/furtherance of business, is treated as supply.
b) Legal Provision:

& Ü Section 7(1)(c) read with Para 4 of Schedule I of CGST Act, states that if services are imported by a
c) person from a related person located outside India without consideration & that too in the course or
furtherance of business, then it is treated as supply.
Ü Explanation to section 15 states that members of the same family are deemed to be "related
persons".

Ü Further, as per section 2(49), brother is treated member of same family only when he is wholly or
mainly dependent on the said person
Discussion & Conclusion:
Ü In the given case, Raman has received free of cost legal services from his brother who is a well-

known lawyer settled in London and is not wholly/mainly dependent on Raman.
Ü So, as per section 2(49) & Explanation to section 15 above, Raman & his brother are not related as
they are not treated as family.
Ü Further, Raman has taken legal advice from him in personal matter & not in course or furtherance
of business.

Ü Thus, the services provided by Raman's brother to him would not be treated as supply u/s 7 of the
CGST Act read with para 4 of Schedule I.
Ü No, if Raman has taken advice for his business unit, services provided by Raman's brother to him

would still not be treated as supply. This is because, though services are provided in course or
furtherance of business, but it is not received from related person.

07. Section 7(2) read with Schedule III:-
Activities treated neither as supply of goods nor supply of services

CCP 02.07.21.00
Enumerate the activities or transactions which shall be treated neither as a supply of goods nor a
supply of services. [ICAI MTP] or
List down the activities/transactions specified under schedule III of the GST Act as non- supplies or

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