# Non-Supplies Clarified by Way of Circular
CBIC has clarified that certain activities are non-supplies through circulars:
## 1. Inter-State Movement of Conveyances [Circular No. 1/1/2017-IGST dt. 07.07.2017]
Inter-State movement between distinct persons of:
- Trains, Trucks, Buses, Tankers, Trailers, Vessels, Containers, Aircrafts
…when used:
- (a) for carrying goods/passengers, OR
- (b) for repairs and maintenance
EXCEPT when the movement is for further supply of the same conveyance → such movement is neither supply of goods nor supply of services.
⚠ However: CGST/SGST/IGST IS leviable on the repairs and maintenance work done on such conveyances.
## 2. Inter-State Movement of Rigs, Tools, Spares, Goods on Wheels [Circular No. 21/21/2017-GST dt. 22.11.2017]
The above circular applies mutatis mutandis to inter-State movement of:
- Rigs
- Tools and spares
- All goods on wheels (e.g., cranes)
Except where movement is for further supply – such movement is NOT a supply.
GST IS leviable on repairs/maintenance done on such goods.
## 3. Transactions in Vouchers
### (a) Vouchers Per Se
- Pre-paid instruments (PPIs): Payment instruments that store value for purchase of goods/services → fall under definition of money → excluded from goods/services.
- Not a PPI: A voucher that creates an obligation on the supplier to accept it as full/part consideration → treated as actionable claim → Sch III Para 6 → NOT a supply.
Transactions in vouchers themselves are NOT a supply. The supply of underlying goods/services for which the voucher is redeemed MAY be taxable under GST.
### (b) Distribution of Vouchers
- Principal-to-Principal (P2P): Distributors/sub-distributors/dealers (DSDs) buy vouchers at a discount and sell at a higher price → it is trading of vouchers → NOT subject to GST (since vouchers are not goods/services).
- Principal-Agent basis: Distributors/agents (DSAs) act as agents for the voucher issuer, earning commission for services (marketing, etc.) → commission/fees ARE taxable as supply of services to the voucher issuer.
### (c) Additional Services to Voucher Issuer
Services like advertisement, customization, co-branding, technology support, customer support → taxable at the applicable rate for the service.
### (d) Unredeemed Vouchers (Breakage)
Vouchers unused at expiry → NOT a supply of goods/services. Amount attributable to breakage is NOT subject to GST.