# Schedule I — Supply WITHOUT Consideration
Schedule I lists four categories that are treated as supply even when no consideration flows.
## 1. Permanent Transfer/Disposal of Business Assets
Where Input Tax Credit (ITC) has been availed on such assets.
### Two Important Points ("Do Imp Baate")
- ITC not blocked / available on the asset, AND
- ITC has actually been availed.
If ITC was not availed (e.g., asset purchased before registration), Schedule I does NOT apply to its permanent disposal.
## 2. Supply between Related Persons or Distinct Persons
In the course or furtherance of business — treated as supply even without consideration.
### Three Important Sub-categories ("Tin Important Baate")
(i) Distinct persons (e.g., branches of same entity in different states with separate registrations).
(ii) Stock transfers / Branch transfers across states.
(iii) Related persons — including:
- Family members
- Officers/directors of one another's business
- Persons controlling/controlled by a third person
- Employer-employee (gifts above ₹50,000 in a financial year)
### Exception: Employer–Employee Gifts
Gifts by employer to employee up to ₹50,000 per FY are NOT treated as supply.
Above ₹50,000 → treated as supply.
## 3. Principal–Agent Supplies
Supply of goods between principal and agent (or vice versa) where the agent supplies/receives goods on behalf of the principal.
### Key Distinction — Whose Name on the Invoice?
- Bill in Agent's name → Schedule I applies (deemed supply).
- Bill in Principal's name → Pure agency; NOT a supply under Schedule I.
## 4. Import of Services from Related Person
Import of services by a taxable person from a related person or from any of his other establishments outside India, in the course or furtherance of business — treated as supply even without consideration.