Online Money Gaming = online game (internet/electronic network) where the player pays/deposits money or virtual digital assets; outcome based on skill/chance/both; whether legally permissible or not.
### (7) Apportioned Premium to Co-Insurer
Where lead insurer collects full premium and shares with co-insurer — not a supply, provided the lead insurer paid GST on the entire premium.
Deducted by insurer from re-insurance premium paid to re-insurer — not a supply, provided the re-insurer paid GST on the gross re-insurance premium.
## Additional Items by Separate Notification
Functions of Panchayats / Municipalities under Article 243G / 243W.
Grant of alcoholic liquor licence by State Government (only this specific licence).
Inter-state movement of conveyances (trucks, buses, rigs) between distinct persons — not supply, unless movement is for further supply of the conveyance itself.
But repair/maintenance services along with material used IS a supply.
Worked example
### Example 1
Q. A company pays its director a fixed monthly salary with TDS deducted u/s 192. Is it a supply?
A. TDS u/s 192 indicates employer-employee relationship → covered by Schedule-III (1) → Not a supply.
### Example 2
Q. A company pays sitting fees to its independent director with TDS u/s 194J. Supply?
A. TDS not u/s 192 → not in employment → Excluded from Schedule-III → Supply (taxable under RCM for the company).
### Example 3
Q. A Ltd. insures machinery for ₹ 200 crores premium. Bajaj (lead insurer) shares ₹ 80 crores with TATA (co-insurer). Bajaj has paid GST on full ₹ 200 crores. Determine taxability of (i) ₹ 200 cr to Bajaj and (ii) ₹ 80 cr by Bajaj to TATA.
A. (i) Taxable as supply of insurance service. (ii) Not a supply — Schedule-III Para (9), as Bajaj paid GST on the entire premium.
### Example 4
Q. A Ltd. pays ₹ 200 cr to Bajaj. Bajaj re-insures with TATA for ₹ 180 cr and deducts ₹ 2 cr commission. TATA pays GST on gross ₹ 180 cr. Treat each leg.
A. ₹ 200 cr A→Bajaj: taxable supply. ₹ 180 cr Bajaj→TATA: taxable supply. ₹ 2 cr commission deduction: not a supply — Schedule-III Para (10).
### Example 5
Q. Janki Ltd. sends a truck (₹ 6 cr, fitted with machines) from Pune to Jamnagar office (distinct persons) for repair. Pune office charges Jamnagar for the repair. Tax implications?
A. Movement of conveyance between distinct persons → not for further supply of the truck → not a supply. But the repair service rendered by Pune to Jamnagar → supply (with material consumed).
⚠️ Common exam mistakes
Treating arbitral tribunal services as covered by Schedule-III — they are NOT covered and attract GST.
Treating sale of developed plots (with levelling/drainage) as supply — these remain under Schedule-III as sale of land.
Treating all actionable claims as not-a-supply — specified actionable claims (betting, lottery, gambling, horse racing, online money gaming, casinos) ARE taxable.
Forgetting the condition that lead insurer/re-insurer must pay GST on the FULL gross premium for Schedule-III paras 9/10 to apply.
Treating director sitting fees as not-a-supply by analogy to salary — only TDS u/s 192 (employment) qualifies.
Bare-Act text Schedule-III · CGST Act, 2017 · click to expand
Schedule-III, CGST Act, 2017 — Activities or transactions which shall be treated neither as a supply of goods nor a supply of services:
1. Services by an employee to the employer in the course of or in relation to his employment.
2. Services by any court or Tribunal established under any law for the time being in force.
3. (a) the functions performed by the Members of Parliament, Members of State Legislature, Members of Panchayats, Members of Municipalities and Members of other local authorities; (b) the duties performed by any person who holds any post in pursuance of the provisions of the Constitution in that capacity; or (c) the duties performed by any person as a Chairperson or a Member or a Director in a body established by the Central Government or a State Government or local authority and who is not deemed as an employee before the commencement of this clause.
4. Services of funeral, burial, crematorium or mortuary including transportation of the deceased.
5. Sale of land and, subject to clause (b) of paragraph 5 of Schedule II, sale of building.
6. Actionable claims, other than specified actionable claims.
7. Supply of goods from a place in the non-taxable territory to another place in the non-taxable territory without such goods entering into India.
8. (a) Supply of warehoused goods to any person before clearance for home consumption; (b) Supply of goods by the consignee to any other person, by endorsement of documents of title, before clearance for home consumption.
9. Activity of apportionment of co-insurance premium by the lead insurer to the co-insurer for the supply of insurance service by the lead insurer to the insured, subject to the condition that the lead insurer pays the central tax, State tax, Union territory tax and integrated tax on the entire amount of premium paid by the insured.
10. Services by insurer to the reinsurer for which ceding commission or the reinsurance commission is deducted from reinsurance premium paid by the insurer to the reinsurer, subject to the condition that the central tax, State tax, Union territory tax and integrated tax is paid by the reinsurer on the gross reinsurance premium payable by the insurer to the reinsurer.