Page 13 - CA Final GST

Badlani Classes

4- Services of funeral, burial, crematorium or mortuary including transportation of the deceased.
5- Sale of land and, subject to clause (b) of paragraph 5 of Schedule II, sale of building.
6- Actionable claims, other than lottery, betting and gambling.

Explanation. -For the purposes of paragraph 2, the term "court" includes District Court, High Court
and Supreme Court.
Analysis : Sale of Land & Building :

Sale of land, subject to Sch II para 5(b), sale of building is neither supply of goods nor supply of services
as per Sch III para 5.
It means if CGST covers supply of building before completion or before occupancy. Thus sale of
completed building after occupation or completion will not be subject to GST.

Analysis : Services by employee to employer:

Services by employee to employer are not subject to GST. However, it can be subject to GST if these
are for personal use of employees. Fringe benefits provided by employer to employee will be subject
to GST.
Analysis : Actionable Claims
Unsecured Debt is an actionable claim and if such unsecured debt is transferred to third person for a
consideration the transaction would tantamount to supply of SERVICE under GST.
Actionable As Per Section 3 of the Transfer of Property Act, 1882 Actionable Claim1 is a claim to
Claim any debt, other than a debt secured by mortgage of immovable property or by
hypothecation or pledge of moveable property, or to any beneficial interest in moveable
property not in possession either actual or constructive, of the claimant, which the civil
courts recognize2 as affording grounds of relief whether such debt or beneficial interest
be existent, accruing or conditional or contingent”.

Actionable claim means a claim to any debt other than a debt secured under a mortgage
or hypothecation or pledge on any immovable or moveable property, possession of which
is given to person or institution which gave the loan.

An Actionable Claim is a plain unsecured debt which can be claimed by a person against
another person and which can be enforced in civil courts according to law. Right to
benefit of a contract falls within the definition of Actionable Claim. An Actionable Claim
is transferable and inheritable and it is deemed to be a property in the hands of the person
who has the claim.

Simply stated, an actionable claim means a claim to any unsecured debt or a claim to any
beneficial interest in movable property, not in the possession of the claimant. The debt
or beneficial interest may exist, accruing, conditional or contingent.

For example, A borrows Rs. 5000/- from B at 12% per annum interest on 1st April,
2016 and promises to pay back the amount with interest on 1st July, 2016. Till 1st July,
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2016, the debt is an accruing debt and is an actionable claim.

Central Goods & Services Tax Act, 2017