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<h1>Transfer of Title and Possession Defines Supply of Goods; Delayed Title Transfer Still Goods per Schedule II (1)</h1> For a transaction to be considered a supply of goods, both the title and possession must be transferred. If the title is not transferred, the transaction is treated as a supply of service according to Schedule II (1). Transactions where possession is transferred immediately but the title is transferred later, such as in sales on approval or hire purchase arrangements, are also considered supplies of goods.