Revised Model GST law schedule III

Definition of supply in revised model GST draft provide covers the Schedule III and IV. Schedule III mentions the activities or transactions which shall be treated neither as a supply of goods nor services. In the earlier law these provisions were covered in the definition of taxable person but now they have been included in the Schedule III of the revised Model GST law.Schedule  IV of revised Model GST law covers the activities or transactions undertaken by the central government, A state government or any local authority which shall be treated neither as a Supply of Goods nor as a supply of services.Full text of schedule IV is available here. 

SCHEDULE III

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 by a foreign diplomatic mission located in India.
5. Services of funeral, burial, crematorium or mortuary including transportation of the deceased.

Most of these changes will have no impact on a normal taxpayer. Services by an employee was excluded in earlier law also.Rest of the provisions belong to the specific category of people and the last one is inserted in the lines of existing service tax law.