# Scope of Supply (Section 7, CGST Act)
## The Five Essential Ingredients of Supply
For a transaction to qualify as 'supply' under GST, all five conditions must generally be satisfied:
1. Goods or Services — the transaction must involve goods or services (or both).
2. Consideration — there must be consideration (monetary or otherwise).
3. In the course or furtherance of business — the supply must be made as part of business activity.
4. Taxable person — the supplier must be a taxable person.
5. Taxable supply — the supply itself must be a taxable supply (not exempt/non-GST).
## Memory Aid
"GST se connect rakho — Goods/Services, Consideration, course of business, Taxable person, Taxable supply."
## Two Important Carve-outs
- Schedule I — Activities treated as supply even without consideration (override of condition 2).
- Schedule III — Activities/transactions treated as neither supply of goods nor services (negative list).
## Quick Decision Flow
- All 5 ingredients present → Supply → Check Schedule II for classification (goods vs services).
- Missing consideration but listed in Schedule I → Still a supply.
- Listed in Schedule III → Not a supply at all.