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TMI BlogCertain Activity or Transaction whether it is Supply of Goods or Services- Para 5 Schedule II Read with Section 7(1A)X X X X Extracts X X X X X X X X Extracts X X X X ..... n defined in Schedule II whether it is Supply of Goods or Services - As per para 5 of Schedule II of CGST Act - Supply of services (a). Renting of immovable property - Supply of service Renting in relation to immovable property means allowing, permitting, or granting access, entry, occupation, use or any such facility, wholly or partly, in an immovable property, with or without the transfer of possession or control of the said immovable property and includes letting, leasing, licensing or other similar arrangements in respect of immovable property. Also plant and machinery permanently embedded in the Earth or attached to the building are termed as immovable property. Such assets shall also be covered under this entry. It must be noted that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... placements or remodeling of any existing civil structure. Example A : - Mr. A booked a flat during the under construction of building and give a token money of Rs. 10,000/- to builder for booking a flat, it is deemed to supply of services and liable to GST on entire value of flat even if part of consideration received after receipt of completion certificate. Example B : - Mr. A booked a flat during the under construction of building and does not give any money to builder for booking a flat and take handover of flat after when builder received completion certificate form competent authority, it is deemed to supply of services and not liable to GST. (c). Temporary transfer or permitting the use or enjoyment of any Intellectual Property Rights ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... territory. Transfer of IPR is Taxable under GST: Both the permanent transfer of IPR and temporary transfer are subject to GST. Temporary transfer includes permitting use or enjoyment of IPR. (d). Development, design, programming, customization, adaptation, upgradation, enhancement, implementation of information technology software - Supply of service This entry mainly covers the customized software (i.e., uncanned software). However, the law is silent about the canned software, which is generally sold through a medium, such as DVD, pen drive etc. Meaning of the term information technology software as per explanation in clause no. 4 of N. No. 11/2017-CT-(R) dated 28 June 2017 and Education guide released by CBEC 2012 [Para 6.4] information ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f goods, since the contract is essentially for design and development of software it would fall in the declared list entry. Such a transaction would be in the nature of composite transaction involving an element of provision of service, in as much as the contract is for design and development of software and also an element of transfer of title in goods, in as much as the property in CD containing the developed software is transferred to the client. However, the CD remains only a media to transmit or deliver the outcome of which is essentially and pre-dominantly a contract of service. Therefore, such a transaction would not be excluded from the ambit of the definition of service as the transaction does not involve only transfer of title in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut of breach of contract or otherwise and scope of the entry at para 5 (e) of Schedule II of CGST Act, 2017 [ Circular No. 178/10/2022-GST dated 03.08.2022 ] (f). Transfer of rights to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration - Supply of service Transfer of right of goods involves transfer of possession and effective control over such goods. But every transfer of goods on lease, license or hiring does not result in transfer of right to use goods. As per Education guide of CBEC 2012 (Services tax regime) 6.6.1 What is the meaning and scope of the phrase transfer of right to use such goods . Transfer of right to use goods is a well-recognized constitutiona ..... X X X X Extracts X X X X X X X X Extracts X X X X
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