Analysis of Circular No. 178/10/2022 dated August 3, 2022
Background : In terms Entry 5(e) of Schedule II of the CGST Act, 2017 an activity for agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act shall be treated as supply of ‘service’.
In simple words, an activity to agree to the obligation of any of the following shall be treated as supply of service:
- to refrain from an act; or
- to tolerate an act or a situation;
- to do an act.
Source Reema Sondhi
