October 29, 2020
What is GST? What is GST classification? And which are the GST items list? -These questions lead us to the end module of GST which is Classification of goods and services under GST.
It has two schedules- Schedule I and Schedule II.
Schedule I of GST items list are
It specifically illustrate the activities to be treated as supply of goods or supply of services, it provides that any treatment or process which is applied to another person’s goods is a supply of services.
Activities or transactions that need to be treated as supply of goods or supply of services include:
|Lease, tenancy, easement, license to occupy land||Services|
|Lease or letting of any building for commercial purposes||Services|
|Any treatment or process applied to another person’s goods||Services|
|Supply by service of food and drinks in lieu of consideration, other than alcohol||Services|
|Supply of goods by any unincorporated AOP or BOP for consideration||Goods|
Works contracts were treated as both goods and supply in the pre-GST regime, to which both VAT and service tax were applied. Work contractors had to deal with various rates, composition schemes etc. that lead to intricacies.
These uncertainties associated with the works contract tax structures have been simplified under GST. Activities vividly sectioned as goods or services under the GST structure will help to eradicate ambiguities and bring down legal actions.