Text
The text below is the section as served by the CBIC tax information portal on 17 September 2026, with the portal's own amendment footnote markers (shown as small numerals before a bracket) and its footnotes.[1] The Act as published in the Gazette of India is the legal source.
Schedule II, verbatim (show)
SCHEDULE II . [ See section 7]
ACTIVITIES 1 [OR TRANSACTIONS] TO BE TREATED AS SUPPLY OF GOODS OR SUPPLY OF SERVICES
1. Transfer
(a) any transfer of the title in goods is a supply of goods;
(b) any transfer of right in goods or of undivided share in goods without the transfer of title thereof, is a supply of services;
(c) any transfer of title in goods under an agreement which stipulates that property in goods shall pass at a future date upon payment of full consideration as agreed, is a supply of goods.
2. Land and Building
(a) any lease, tenancy, easement, licence to occupy land is a supply of services;
(b) any lease or letting out of the building including a commercial, industrial or residential complex for business or commerce, either wholly or partly, is a supply of services.
(3) Treatment or process
Any treatment or process which is applied to another person's goods is a supply of services.
(4) Transfer of business assets
(a) where goods forming part of the assets of a business are transferred or disposed of by or under the directions of the person carrying on the business so as no longer to form part of those assets, 2 [****]such transfer or disposal is a supply of goods by the person;
(b) where, by or under the direction of a person carrying on a business, goods held or used for the purposes of the business are put to any private use or are used, or made available to any person for use, for any purpose other than a purpose of the business, 2 [****] the usage or making available of such goods is a supply of services;
(c) where any person ceases to be a taxable person, any goods forming part of the assets of any business carried on by him shall be deemed to be supplied by him in the course or furtherance of his business immediately before he ceases to be a taxable person, unless-
(i) the business is transferred as a going concern to another person; or
(ii) the business is carried on by a personal representative who is deemed to be a taxable person.
5. Supply of services
The following shall be treated as supply of services, namely:-
(a) renting of immovable property;
(b) construction of a complex, building, civil structure or a part thereof, including a complex or building intended for sale to a buyer, wholly or partly, except where the entire consideration has been received after issuance of completion certificate, where required, by the competent authority or after its first occupation, whichever is earlier.
Explanation. -For the purposes of this clause-
(1) the expression "competent authority" means the Government or any authority authorised to issue completion certificate under any law for the time being in force and in case of non-requirement of such certificate from such authority, from any of the following, namely:-
(i) an architect registered with the Council of Architecture constituted under the Architects Act, 1972 (20 of 1972); or
(ii) a chartered engineer registered with the Institution of Engineers (India); or
(iii) a licensed surveyor of the respective local body of the city or town or village or development or planning authority;
(2) the expression "construction" includes additions, alterations, replacements or remodelling of any existing civil structure;
(c) temporary transfer or permitting the use or enjoyment of any intellectual property right;
(d) development, design, programming, customization, adaptation, upgradation, enhancement, implementation of information technology software;
(e) agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act; and
(f) transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration.
6. Composite supply
The following composite supplies shall be treated as a supply of services, namely:-
(a) works contract as defined in clause (119) of section 2; and
(b) supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink (other than alcoholic liquor for human consumption), where such supply or service is for cash, deferred payment or other valuable consideration.
7. 3 [****]
1. Inserted w.e.f. 01st July, 2017 by s.31 of The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018) - Brought into force w.e.f. 01st February, 2019.
2. Omitted " whether or not for a consideration, " w.e.f. 01st July, 2017 by s.131 of The Finance Act, 2020 (No. 12 of 2020) - Brought into force w.e.f. 01st January, 2021 vide Notification No. 92/2020-C.T., dated 22-12-2020
3. Omitted w.e.f. 01st July, 2017 by s.122 of The Finance Act, 2021 dated 28th March, 2021 for
"7. Supply of Goods
The following shall be treated as supply of goods, namely:-
Supply of goods by any unincorporated association or body of persons to a member thereof for cash, deferred payment or other valuable consideration."
- Brought into force w.e.f. 01st January, 2022 by Notification No. 39/2021-C.T., dated 21st December, 2021.
Questions to answer on the file
Questions a reviewer answers from the engagement file, grouped by the part of the section they come from. They describe what the section asks; they do not decide it.
Scope the Schedule as a whole
Questions to answer on the file1 question
Transfer paragraph 1(a) to (c)
Questions to answer on the file5 questions
Land and building paragraph 2(a) and (b)
Questions to answer on the file9 questions
Treatment or process paragraph 3
Questions to answer on the file2 questions
Transfer of business assets paragraph 4(a) to (c) with sub-clauses (i) and (ii)
Questions to answer on the file13 questions
Supply of services paragraph 5(a) to (f) with the Explanation to clause (b)
Questions to answer on the file21 questions
Composite supply paragraph 6(a) and (b)
Questions to answer on the file5 questions
The classification the Schedule produces the Schedule read with section 7
Questions to answer on the file1 question
Amendment history
The CBIC text carries 3 footnotes. The table gives each in the source's own terms. Effective dates are as the footnotes state them.[1]
| Note | Provision | Change | Instrument |
|---|---|---|---|
| 1 | the heading of the Schedule | inserted the words "OR TRANSACTIONS" after "ACTIVITIES" | s.31 of The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018)[2] |
| 2 | clauses (a) and (b) of paragraph 4 | omitted the words "whether or not for a consideration," from both clauses | s.131 of The Finance Act, 2020 (No. 12 of 2020), vide Notification No. 92/2020-C.T. dated 22.12.2020[3][4] |
| 3 | paragraph 7 | omitted the whole paragraph, which had treated a supply of goods by an unincorporated association or body of persons to a member as a supply of goods | s.122 of The Finance Act, 2021 dated 28.03.2021, vide Notification No. 39/2021-C.T. dated 21.12.2021[5][6] |
Relationship with other provisions
| Provision | Connection | Words that tie them |
|---|---|---|
| Section 7 | this provision requires Section 7 | the heading "[ See section 7]"; the Schedule classifies only what section 7 has already made a supply |
| Section 7 | Section 7 defined by this provision | 7(1A) "shall be treated either as supply of goods or supply of services as referred to in Schedule II" |
| Section 2 | 6(a) defined by Section 2 | 6(a) "works contract as defined in clause (119) of section 2" |
| Section 2 | (3) same as Section 2 | 2(68) defines job work as "any treatment or process undertaken by a person on goods belonging to another registered person", which is paragraph 3 narrowed to a registered owner |
| Section 10 | Section 10 requires this provision | 10(1)(b) "supplies referred to in clause (b) of paragraph 6 of Schedule II" |
| Section 17 | Section 17 requires this provision | 17(3) "subject to clause (b) of paragraph 5 of Schedule II, sale of building" |
Circulars and notifications
Circulars and notifications in the CBIC repository that cite this section, newest first, by number, date and subject. A listing here does not say what an instrument decides; read the instrument.
Circulars (10)
| Number | Date | Subject |
|---|---|---|
| Circular No. 205/17/2023-GST | 31 October 2023 | Clarification regarding GST rate on imitation zari thread or yarn based on the recommendation of the GST Council in its 52ndmeeting held on 7th October, 2023. |
| Circular No. 178/10/2022-GST | 3 August 2022 | GST applicability on liquidated damages, compensation and penalty arising out of breach of contract or other provisions of law |
| Circular No. 179/11/2022-GST | 3 August 2022 | Clarification regarding GST rates & classification (goods) based on the recommendations of the GST Council in its 47th meeting held on 28th – 29th June, 2022 at Chandigarh |
| Circular No. 164/20/2021-GST | 6 October 2021 | Clarifications regarding applicable GST rates & exemptions on certain services. |
| Circular No. 113/32/2019-GST | 11 October 2019 | Clarification regarding GST rates & classification (goods) Circular-reg. |
| Circular No. 102/21/2019-GST | 28 June 2019 | Clarification regarding applicability of GST on additional / penal interest-reg |
| Circular No. 52/26/2018-GST | 9 August 2018 | Circular No. 52/26/2018-GST dated 09.08.2018 i.r.o. clarification regarding applicability of GST rates on various goods and services. |
| Circular No. 44/18/2018-GST | 2 May 2018 | Issue related to taxability of 'tenancy rights' under GST- Regarding. |
| Circular No. 35/09/2018-GST | 5 March 2018 | Clarification regarding taxable services provided by the member of the Joint Venture(JV) to the JV and vice versa and inter se between the members of the JV. |
| Circular No. 19/19/2017-GST | 20 November 2017 | Clarification on taxability of custom milling of paddy. |
Notifications (13)
| Number | Date | Subject |
|---|---|---|
| Notification No. 15/2023-Central Tax (Rate) | 19 October 2023 | Seeks to amend Notification No 15/2017- Central Tax (Rate) dated 28.06.2017. |
| Notification No. 18/2023-Integrated Tax (Rate) | 19 October 2023 | Seeks to amend Notification No 12/2017- Integrated Tax (Rate) dated 28.06.2017. |
| Notification No. 15/2023-Union Territory Tax (Rate) | 19 October 2023 | Seeks to amend Notification No 15/2017- Union territory Tax (Rate) dated 28.06.2017. |
| Notification No. 16/2019-Central Tax | 29 March 2019 | Seeks to make Second Amendment (2019) to CGST Rules. |
| Notification No. 06/2018-Integrated Tax (Rate) | 25 January 2018 | Seeks to exempt royalty and license fee from Integrated tax to the extent it is paid on the consideration attributable to royalty and license fee included in transaction value under Rule 10(1)(c) of Customs Valuation (Determination of value of imported Goods) Rules, 2007 |
| Notification No. 11/2017-Central Tax (Rate) | 28 June 2017 | To notify the rates for supply of services under CGST Act amended by a later instrument |
| Notification No. 15/2017-Central Tax (Rate) | 28 June 2017 | To notify the supplies not eligible for refund of unutilized ITC under CGST Act amended by a later instrument |
| Notification No. 08/2017-Integrated Tax (Rate) | 28 June 2017 | To notify the rates for supply of services under IGST Act amended by a later instrument |
| Notification No. 12/2017-Integrated Tax (Rate) | 28 June 2017 | To notify the supplies not eligible for refund of unutilized ITC under IGST Act amended by a later instrument |
| Notification No. 11/2017-Union Territory Tax (Rate) | 28 June 2017 | To notify the rates for supply of services under UTGST Act amended by a later instrument |
| Notification No. 15/2017-Union Territory Tax (Rate) | 28 June 2017 | To notify the supplies not eligible for refund of unutilised ITC under UTGST Act amended by a later instrument |
| Notification No. 08/2017-Central Tax | 27 June 2017 | Seeks to to notify the turnover limit for Composition Levy for CGST superseded by a later instrument |
| Notification No. 02/2017-Union Territory Tax | 27 June 2017 | Seeks to notify the turnover limit for Composition Levy for UTGST amended by a later instrument |
Unsettled questions
The words of schedule ii do not answer these questions. Where one decides a matter on the file, the answer depends on the position taken on it.
- Paragraph 2(a) makes a licence to occupy land a supply of services but does not say what occupation requires. Where a person is given a right to use a defined space on land without exclusive possession, the Schedule does not say whether that is a licence to occupy.
- Clause 2(b) reads "any lease or letting out of the building including a commercial, industrial or residential complex for business or commerce". It does not say whether the words for business or commerce qualify every lease or letting out the clause reaches, or only the complexes its inclusive words name, so it does not say what the clause does with a building let for a purpose that is neither.
- Paragraph 4(c) deems the goods of a business to be supplied when a person ceases to be a taxable person, but, unlike clauses (a) and (b), it does not say whether that deemed supply is a supply of goods or a supply of services.
- Paragraph 5(b) turns on the earlier of the completion certificate and first occupation, and the Schedule defines the first but not the second: it does not say by whom, for what purpose, or of how much of the building, occupation must first occur.
See also
- Section 7 of the CGST Act, 2017: scope of supply
- Section 2 of the CGST Act, 2017: definitions
- Schedule I of the CGST Act, 2017: activities to be treated as supply even if made without consideration
- Schedule III of the CGST Act, 2017: activities which shall be treated neither as a supply of goods nor a supply of services
References
- Central Board of Indirect Taxes and Customs. "Schedule II. Activities or transactions to be treated as supply of goods or supply of services". Central Goods and Services Tax Act, 2017, CBIC tax information portal, with amendment footnotes 1 to 3. Retrieved 17 September 2026.
- The Central Goods and Services Tax (Amendment) Act, 2018. Cited in CBIC footnote 1.
- The Finance Act, 2020. Cited in CBIC footnote 2.
- Notification No. 92/2020-Central Tax, dated 22 December 2020: Seeks to bring into force Sections 119, 120, 121, 122, 123, 124, 126, 127 and 131 of Finance Act, 2020 (12 of 2020). Cited in CBIC footnote 2.
- The Finance Act, 2021. Cited in CBIC footnote 3.
- Notification No. 39/2021-Central Tax, dated 21 December 2021: Seeks to notify 01.01.2022 as the date on which provisions of section 108, 109 and 113 to 122 of the Finance Act, 2021 shall come into force. Cited in CBIC footnote 3.
External links
- CGST Act, 2017, Schedule II on the CBIC tax information portal