Certain Activity or Transaction whether it is Supply of Goods or Services- Para 3 Schedule II Read with Section 7(1A) - GST Ready Reckoner - GST

Activity or Transaction - Schedule II whether it is Supply of Goods or Services Section 7(1A) , states that; Where certain activities or transactions constitute a supply in accordance with the provisions of section 7(1), they shall be treated either as supply of goods or supply of services as referred to in Schedule II . [Note:- Before amendment it was clause (d) of section 7(1)(d) ] Read along with the definition of Goods services, Schedule II provide clarification regarding Which is the goods or services for taxability of GST Certain activity or transaction defined in Schedule II whether it is Supply of Goods or Services - As per para 3 of Schedule II of CGST Act - Treatment or process Any treatment or process which is being applied to another person's goods - Supply of service Applicable when the treatment or process is applied to another person's movable property. That activity involving two or more taxable goods and/or services have been considered composite supply under GST. In general, no process or treatment can be completed without adding some incidental goods, Similarly, the job work uses his inputs in the printing contracts , fabrications of garments, and colouring of fabric etc.. However, the law say that process must be is applied to another person s goods. Important Notifications circulars It is clarified in circular no. 38/12/2018 dated 26 March 2018 , where the job worker is expected to work on the goods send by the principal and whether the activity is covered within in the scope of job worker or not, would have to be determined on the facts and circumstances of each case. It is further clarified that job worker, in addition to goods received from principal, can use his own goods for providing the services of job work.