Supply of Goods :
Though tax is payable whether supply is goods or service, distinction has been made in some cases.
This is given in Schedule II
♦ This distinction is relevant to determine place of supply and time of supply and also for valuation and composition schemes.
♦ Hire purchase of goods and financial lease is ‘goods’.
♦ Supply of goods in club is taxable.
♦ Software in physical form should be ‘goods’.
♦ Permanent transfer of IPR should be ‘goods’.
♦ Lottery, betting and gambling is taxable as ‘goods’ but any other Actionable Claim is not subject to tax.
♦ Free gifts to non-related persons is not subject to GST, but input tax credit will have to be reversed.