'Goods' and 'Services' find new definitions in new Model Laws released by Central Government
AS per Section 2(48) of the Model GST Law released in June 2016,
(48) "goods'' means every kind of movable property other than actionable claim and money but includes securities, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before supply or under the contract of supply;
Explanation.- For the purpose of this clause, the term 'moveable property' shall not include any intangible property.
The definition as per Section 2(49) of the Model GST Law released now reads as,
"goods'' means every kind of movable property other than money and securities but includes actionable claim, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before supply or under a contract of supply;
This means:
1. Goods included 'securities' in the earlier model law, but is now specifically excluded.
2. 'Actionable claim' was not goods earlier, but is now included in the definition of goods.
3. The explanation, the term 'moveable property' shall not include any intangible property is not there now.
As per Section 2(88) of the earlier Model Law,
(88) "services'' means anything other than goods;
Explanation: Services include intangible property and actionable claim but does not include money.
The new definition in Section 2(92)reads as:
"services'' means anything other than goods;
Explanation 1.- Services include transactions in money but does not include money and securities;
Explanation 2.- Services does not include transaction in money other than an activity relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged.
New Capital Goods: The previous model law had a strange definition for capital goods. Section 2(20) defined it as:
(20) "capital goods" means: -
(A) the following goods, namely:-
(i) all goods falling within Chapter 82, Chapter 84, Chapter 85, Chapter 90, heading 6805, grinding wheels and the like, and parts thereof falling under heading 6804 of the Schedule to this Act;
(ii) pollution control equipment;
(iii) components, spares and accessories of the goods specified at (i) and (ii);
(iv) moulds and dies, jigs and fixtures;
(v) refractories and refractory materials;
(vi) tubes and pipes and fittings thereof;
(vii) storage tank; and
(viii) motor vehicles other than those falling under tariff headings 8702, 8703, 8704, 8711 and their chassis but including dumpers and tippers used- (1) at the place of business for supply of goods; or (2) outside the place of business for generation of electricity for captive use at the place of business; or (3) for supply of services,
(B) motor vehicle designed for transportation of goods including their chassis registered in the name of the supplier of service, when used for -
(i) supplying the service of renting of such motor vehicle; or
(ii) transportation of inputs and capital goods used for supply of service; or
(iii) supply of courier agency service;
(C) motor vehicle designed to carry passengers including their chassis, registered in the name of the supplier of service, when used for supplying the service of-
(i) transportation of passengers; or
(ii) renting of such motor vehicle; or
(iii) imparting motor driving skills;
(D) Components, spares and accessories of motor vehicles which are capital goods for the taxable person.
Now there is a less complicated and more relevant definition. Section 2(19) reads as:
(19) "capital goods" means goods, the value of which is capitalised in the books of accounts of the person claiming the credit and which are used or intended to be used in the course or furtherance of business;