Examine whether the following activities would amount to supply under section 7 read with Schedule I: (i) Rimjhim Manufacturers have a factory in…

(a) (i) Schedule I read with section 7 (1) (c) of the CGST Act, 2017, inter alia , stipulates that supply of goods or services or both between related persons or between distinct persons as specified in section 25 of the CGST Act, 2017, is supply even without consideration provided it is made in the course or furtherance of business. Further, a person who has obtained more than one registration, whether in one State/Union territory or more than one State/Union territory shall, in respect of each such registration, be treated as distinct persons [Section 25 (4) of the CGST Act, 2017]. In view of the same, factory and depot of Rimjhim, Manufacturers are distinct persons. Therefore, supply of goods from Delhi factory of Rimjhim Manufacturers to Mumbai Depot without consideration, but in course/furtherance of business, is supply under section 7 of the CGST Act, 2017 read with Schedule I. (ii) Schedule I read with section 7 (1) (c) of the CGST Act, 2017, inter alia , stipulates that import of services by a taxable person from a related person located outside India, without consideration is treated as supply if it is provided in the course or furtherance of business. Explanation to section 15 of the CGST Act, 2017, inter alia , provides that persons shall be deemed to be “related persons" if they are members of the same family. Further, as per section 2 (49) of the CGST Act, 2017, family means, (a) the spouse and children of the person, and (b) the parents, grand-parents, brothers and sisters of the person if they are wholly or mainly dependent on the said person. In the given case, Mohan has received free of cost legal services from his brother. However, in view of section 2 (49) (ii) of the CGST Act, 2017 above, Mohan and his brother cannot be considered to be related as Mohan's brother is a well-known lawyer and so, not wholly/mainly dependent on Mohan. Further, Mohan has taken legal advice from him in personal matter and not in course or furtherance of business. Consequently, services provided by Mohan's brother to him would not be treated as supply under section 7 of the CGST Act, 2017 read with Schedule I.