Faq Inner Header Bg



Schedule II of the CGST Act

October 29, 2020

Schedule II Of The CGST Act

Schedule II of the CGST Act

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.

What is the classification of goods and services under GST?

It has two schedules- Schedule I and Schedule II.

Schedule I of GST items list are

Classification of Goods and Services under GST under Schedule II of the CGST Act

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:

Transfer of Goods

Land & Building

Specifics Treated as
Lease, tenancy, easement, license to occupy land Services
Lease or letting of any building for commercial purposes Services

Treatment or Process

Specifics Treated as
Any treatment or process applied to another person’s goods Services

Transfer of Business Assets

Composite Supply

Specifics Treated as
Works Contract 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.


Read More

GST Classification

Types of GST - CGST, SGST, and IGST


GST Classification
Related Blogs