Activities which are to be treated as supply of Goods or Supply of Services under GST

Its been defined in Sched­ule-II of the CGST Act 2017.

  1. Trans­fer
    • any trans­fer of the title in goods is a sup­ply of goods;
    • any trans­fer of right in goods or of undi­vid­ed share in goods with­out the trans­fer of title there­of, is a sup­ply of services;
    • any trans­fer of title in goods under an agree­ment which stip­u­lates that prop­er­ty in goods shall pass at a future date upon pay­ment of full con­sid­er­a­tion as agreed, is a sup­ply of
  2. Land and Building
    • any lease, ten­an­cy, ease­ment, licence to occu­py land is a sup­ply of services;
    • any lease or let­ting out of the build­ing includ­ing a com­mer­cial, indus­tri­al or res­i­den­tial com­plex for busi­ness or com­merce, either whol­ly or part­ly, is a sup­ply of services.
  3. Treat­ment or process

Any treat­ment or process which is applied to anoth­er per­son­’s goods is a sup­ply of services.

  1. Trans­fer of busi­ness assets
    • where goods form­ing part of the assets of a busi­ness are trans­ferred or dis­posed of by or under the direc­tions of the per­son car­ry­ing on the busi­ness so as no longer to form part of those assets, whether or not for a con­sid­er­a­tion, such trans­fer or dis­pos­al is a sup­ply of goods by the person;
    • where, by or under the direc­tion of a per­son car­ry­ing on a busi­ness, goods held or used for the pur­pos­es of the busi­ness are put to any pri­vate use or are used, or made avail­able to any per­son for use, for any pur­pose oth­er than a pur­pose of the busi­ness, whether or not for a con­sid­er­a­tion, the usage or mak­ing avail­able of such goods is a sup­ply of services;
    • where any per­son ceas­es to be a tax­able per­son, any goods form­ing part of the assets of any busi­ness car­ried on by him shall be deemed to be sup­plied by him in the course or fur­ther­ance of his busi­ness imme­di­ate­ly before he ceas­es to be a tax­able per­son, unless— 
      • the busi­ness is trans­ferred as a going con­cern to anoth­er per­son; or
      • the busi­ness is car­ried on by a per­son­al rep­re­sen­ta­tive who is deemed to be a taxable
  1. Sup­ply of services

The fol­low­ing shall be treat­ed as sup­ply of ser­vices, namely:—

  • rent­ing of immov­able property;
  • con­struc­tion of a com­plex, build­ing, civ­il struc­ture or a part there­of, includ­ing a com­plex or build­ing intend­ed for sale to a buy­er, whol­ly or part­ly, except where the entire con­sid­er­a­tion has been received after issuance of com­ple­tion cer­tifi­cate, where required, by the com­pe­tent author­i­ty or after its first occu­pa­tion, whichev­er is

Expla­na­tion.—For the pur­pos­es of this  clause—

  • the expres­sion “com­pe­tent author­i­ty” means the Gov­ern­ment or any author­i­ty autho­rised to issue com­ple­tion cer­tifi­cate under any law for the time being in force and in case of non-require­ment of such cer­tifi­cate from such author­i­ty, from any of the fol­low­ing, namely:— 
    • an archi­tect reg­is­tered with the Coun­cil of Archi­tec­ture con­sti­tut­ed under the Archi­tects Act, 1972; or
    • a char­tered engi­neer reg­is­tered with the Insti­tu­tion of Engi­neers (India); or
    • a licensed sur­vey­or of the respec­tive local body of the city or town or vil­lage or devel­op­ment or plan­ning authority;
  • the expres­sion “con­struc­tion” includes addi­tions, alter­ations, replace­ments or remod­el­ling of any exist­ing civ­il structure; 
    • tem­po­rary trans­fer or per­mit­ting the use or enjoy­ment of any intel­lec­tu­al prop­er­ty right;
    • devel­op­ment, design, pro­gram­ming, cus­tomi­sa­tion, adap­ta­tion, upgra­da­tion, enhance­ment, imple­men­ta­tion of infor­ma­tion tech­nol­o­gy software;
    • agree­ing to the oblig­a­tion to refrain from an act, or to tol­er­ate an act or a sit­u­a­tion, or to do an act; and
    • trans­fer of the right to use any goods for any pur­pose (whether or not for a spec­i­fied peri­od) for cash, deferred pay­ment or oth­er valuable
  1. Com­pos­ite supply

The fol­low­ing com­pos­ite sup­plies shall be treat­ed as a sup­ply of ser­vices, namely:—

  • works con­tract as defined in clause (119) of sec­tion 2; and
  • sup­ply, by way of or as part of any ser­vice or in any oth­er man­ner what­so­ev­er, of goods, being food or any oth­er arti­cle for human con­sump­tion or any drink (oth­er than alco­holic liquor for human con­sump­tion), where such sup­ply or ser­vice is for cash, deferred pay­ment or oth­er valuable
  1. Sup­ply of Goods

The fol­low­ing shall be treat­ed as sup­ply of goods, namely:—

Sup­ply of goods by any unin­cor­po­rat­ed asso­ci­a­tion or body of per­sons to a mem­ber there­of for cash, deferred pay­ment or oth­er valu­able consideration.

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