Question 14 - Whether transfer of right to use goods will be treated as supply of goods or supply of service? Why? - FAQ on GST dated 21.9.2016 based on Draft Model GST

Q 14. Whether transfer of right to use goods will be treated as supply of goods or supply of service? Why?

Ans. Transfer of right to use goods shall be treated as supply of service because there is no transfer of title in such supplies. Such transactions are specifically treated as supply of service in Schedule-II of MGL