# Goods, Services, Money & Actionable Claim — Critical Definitions

## 1. Goods [Section 2(52)]

Goods means:

Every kind of MOVABLE property
Other than money and securities
But INCLUDES: actionable claims, growing crops, grass, and things attached to or forming part of land that are agreed to be severed before supply or under a contract of supply

### Decision Logic for 'Goods'

Is it movable? If No → not goods
If Yes → Is it money/securities? If Yes → not goods
Else → GOODS (includes actionable claims, severed crops/items)

## 2. Services [Section 2(102)]

Services means:

Anything OTHER than goods, money and securities
But INCLUDES activities relating to use of money or its conversion (cash or otherwise) from one form/currency/denomination to another for which a separate consideration is charged

Explanation: 'Services' includes facilitating or arranging transactions in securities.

### Important Implications

Mere conversion of currency = NOT a service (you got money back in another form)
Conversion with separate commission/fee = Service (the fee is consideration)
Buying/selling securities = NOT service (transaction in securities itself)
Brokerage on securities = Service (facilitation)

## 3. Money [Section 2(75)]

Money = Indian legal tender or any foreign currency, including:

Cheque, promissory note, bill of exchange
Letter of credit, draft, pay order, traveller's cheque
Money order, postal or electronic remittance
Any other instrument recognised by RBI

When used as consideration to settle an obligation or exchange with Indian legal tender of another denomination.

### EXCLUSION

Does NOT include currency held for its numismatic value — these become goods subject to GST.

## 4. Actionable Claim

A claim:

(a) To any debt, OTHER THAN a debt secured by mortgage of immovable property or hypothecation/pledge of movable property (i.e., UNSECURED DEBT qualifies)
(b) To any beneficial interest in movable property NOT in possession of the claimant, which civil courts recognise as affording grounds for relief

Whether such debt/beneficial interest is: existent, accruing, conditional, or contingent.

### Common Examples

Unsecured loans/debts
Lottery tickets, betting, gambling claims (specified actionable claims)
Bills of exchange
Right to receive insurance proceeds (before claim accrues)

### Status under GST

Actionable claims are goods [Sec 2(52)] but Schedule III lists them as neither supply of goods nor services, EXCEPT specified actionable claims (lottery, betting, gambling, horse racing, casino, online gaming)

Worked example

### Example 1

Example 1 – Goods or not?: Standing timber tied to land is to be cut and sold under a contract.

Standing timber attached to land = immovable until severed
Contract agrees to sever before supply → qualifies as 'goods'
Conclusion: GOODS

### Example 2

Example 2 – Numismatic currency: A coin collector sells a rare Mughal-era gold coin to a museum for ₹2 lakh.

Currency held for numismatic value is EXCLUDED from 'money'
It is treated as goods
GST applies on supply

### Example 3

Example 3 – Forex conversion: A money changer converts $1,000 USD to INR. No separate commission charged; profit only from exchange rate spread.

Conversion is service only if separate consideration is charged; however, here valuation rules treat conversion as service
Conclusion: Supply of service; specific valuation rule applies

### Example 4

Example 4 – Actionable claim: Mr. A holds a lottery ticket worth ₹100 (potential winning ₹1 crore).

Claim to contingent debt = actionable claim
Lottery is a 'specified actionable claim' → taxable supply

⚠️ Common exam mistakes

Treating securities as 'goods' — they are specifically EXCLUDED from both goods and services
Forgetting that numismatic coins are GOODS, not money
Including SECURED debts in actionable claims — only UNSECURED debts qualify
Forgetting that growing crops and grass become 'goods' if agreed to be severed before supply

Bare-Act text Sections 2(52), 2(75), 2(102) of CGST Act; Section 3 of Transfer of Property Act, 1882 · CGST Act, 2017 read with Transfer of Property Act, 1882 · click to expand

Section 2(52): '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. Section 2(102): 'services' means anything other than goods, money and securities but includes activities 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; Explanation: services includes facilitating or arranging transactions in securities. Section 2(75): 'money' means Indian legal tender or any foreign currency, cheque, promissory note, bill of exchange, letter of credit, draft, pay order, traveller's cheque, money order, postal or electronic remittance or any other instrument recognised by the RBI when used as consideration to settle an obligation or exchange with Indian legal tender of another denomination but shall not include any currency that is held for its numismatic value.

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Goods, Services, Money and Actionable Claim

Worked example

⚠️ Common exam mistakes