As per Schedule I, any kind of disposal or transfer of business assets made by an entity on a permanent basis qualifies as supply, even though it is without consideration. This provision would apply only if

As per Schedule I of the CGST Act, 2017, the following transactions are treated as supply, even if they are made without consideration: Permanent transfer or disposal of business assets on which input tax credit has been availed. This means that if a business disposes of or transfers a business asset on a permanent basis, and it has availed input tax credit on that asset, then the business is liable to pay GST on the disposal or transfer, even if it does not receive any consideration for it. The rationale behind this provision is to prevent businesses from availing input tax credit on business assets and then disposing of or transferring those assets without consideration, in order to avoid paying GST. Here are some examples: A business purchases a machine for ₹10,000 and claims input tax credit on the purchase. The business then donates the machine to a charity. The business is liable to pay GST on the donation, even though it does not receive any consideration for it.