Certain Activity or Transaction whether it is Supply of Goods or Services- Para 6 Schedule II Read with Section 7(1A)

Classification of supply as goods or services governs GST treatment, composite supply rules, and input tax credit availability.

Classification under Schedule II read with section 7(1A) determines whether an activity is a supply of goods or services and triggers composite supply rules. Para 6 treats works contracts as services where transfer of property in goods occurs, subjects works contract services for immovable property to ITC restrictions, and treats supply of food and beverages as service; in patient food forming part of healthcare is composite and not separately taxable while other hospital or outsourced food supplies are taxable, and institutional provision of food may be exempt where provided by the institution itself.