Prateek received a legal advice for his family issues and paid 1500 USD dollars as a legal fee to Ms. Pratibha of New York. (i) Whether the above activity of import of service would amount to supply u/s 7 of the CGST Act

Answer 3(e) (i) Section 7(1)(b) - Supply includes import of services for a consideration even if it is not in the course or furtherance of business. Thus, although the import of service for consideration by Prateek is not in course or furtherance of business, it would amount to supply. (ii) Para 4 of Schedule-l & Section 7(1)(c) - Import of services by a person from a related person or his other establishments outside India, in the course or furtherance of business without consideration is deemed supply. In the given case, import of service without consideration by Prateek from his real sister (Ms. Pratibha, being member of the same family, is a related person] will not be treated as supply as it is not in course or furtherance of business. (iii) However, import of service by Prateek without consideration from his sister Ms. Pratibha (related person) will be treated as supply if she receives legal advice for her business, i.e. in course or furtherance of business Provisions of scope of supply under CGST Act have also been made applicable to IGST Act vide section 20 of the IGST Act.