Decoding Definitions of Goods and Services under Revised Model GST Law

As an Indian Small and Medium Business owner or Startup founder, understanding the Goods and Services Tax (GST) is essential to managing your business. The GST is a comprehensive, multi-stage, destination-based tax that was implemented on July 1, 2017. It replaced multiple indirect taxes such as VAT, Service Tax, and Excise Duty.

One of the most important things to understand about the GST is the definition of goods and services. Under the Revised Model GST Law, the definition of goods and services has been revised to include a wide range of products and services. In this article, we will decode the definitions of goods and services under the Revised Model GST Law.

Goods

The Revised Model GST Law defines goods as “every kind of movable property other than money and securities.” This includes all types of tangible property such as raw materials, finished products, and even animals. The definition of goods also includes intangible property such as copyrights, patents, and trademarks.

It is important to note that the definition of goods under the GST does not include immovable property such as land, buildings, and other real estate. These items are considered to be outside the scope of the GST.

Services

The Revised Model GST Law defines services as “anything other than goods.” This includes a wide range of activities such as consulting, transportation, and entertainment. The definition of services also includes intangible products such as software and digital content.

It is important to note that the definition of services under the GST is quite broad. In fact, the only activities that are specifically excluded from the definition of services are the supply of goods, money, or securities.

Composite Supply

Another important concept to understand under the Revised Model GST Law is the idea of a composite supply. A composite supply is a supply of two or more goods or services that are naturally bundled together. For example, a restaurant may offer a meal that includes food and drinks. Under the GST, this would be considered a composite supply.

It is important to note that a composite supply is different from a mixed supply. A mixed supply is a supply of two or more goods or services that are not naturally bundled together. For example, a stationery store may offer a bundle of pens and pencils. Under the GST, this would be considered a mixed supply.

Conclusion

The Revised Model GST Law has provided a comprehensive definition of goods and services. Understanding these definitions is essential to managing your business and complying with the GST regulations. Remember that goods are every kind of movable property other than money and securities, while services are anything other than goods. Additionally, a composite supply is a supply of two or more goods or services that are naturally bundled together.