Section 2(52) of the CGST Act defines goods as every kind of movable property other than money and securities. It also includes actionable claims, growing crops, grass and things attached to or forming part of the land that are agreed to be severed before or under the contract of supply.
Schedule III treats actionable claims as neither goods nor services, except lottery, betting, gambling, horse racing, casinos and online money gaming, which are taxable. This is why selling a debt or receivable is outside GST, while online money gaming is taxed.
The distinction decides the time of supply rules, the place of supply rules, whether tax is due on advances, the e-way bill requirement and the registration threshold in many states. Anything that is not goods, money or securities is a service under Section 2(102). Where a contract mixes both, the composite supply rules decide the treatment, and Schedule II specifically classifies some activities, such as works contracts, as services.
Look at what the customer receives. A physical product handed over is usually goods; a right, a use or an activity is usually a service. Contracts should describe the supply clearly, because the description is often what officers rely on first.
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This guide explains the law in general terms as of October 2026. Time limits and requirements can depend on the facts of your case and on the notice you received.
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