WHAT ARE THE ACTIVITIES TO BE TREATED AS SUPPLY OF GOODS OR SERVICES in GST ?

The following activities have been defined in Schedule 2 of the CGST ACT to be treated as supply of either Goods or Services.

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 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 goods.

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.

4. 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), such transfer or disposal is a supply of goods by the person;

•Where goods held or used for the purposes of the business are put to any private use or are made available to any person for use, for any purpose  other than a purpose of the business (by or under the directions of the person carrying on the business), the use of goods is considered as 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

•the business is carried on by a personal representative who is deemed to be a taxable person.

5. Supply of services :  

•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.      ( Exception:  where the entire consideration has been received after issuance of completion certificate by the competent authority or after its first occupation, whichever is earlier)

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