ACTIONABLE CLAIMS UNDER GST?

As per section 3 of Transfer of Property Act, “Actionable claim” means a claim to any debt, other than that secured by mortgage of immovable property or by hypothecation and pledge of movable property or to any beneficial interest in movable property not in position, either actual or constructive, of the claimant, which the Civil court recognized as an affording ground for relief, whether debts or beneficial interest be existent, acquiring, conditional or contingent.

Followings are a few examples of Actionable Claim:

1. Right to recover insurance policy
2. A claim for an arrear of rent
3. Sale to Lottery tickets

Why is it important to understand the actionable claims under GST?

Actionable claims are considered as goods under the GST act. As per section 2(52)  of CGST Act, “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 Syria before supply or under a contract of supply.

From the above definition it seems that actionable claims are goods, so GST will be applicable on the actionable claim,  but entry number 6 of schedule III of the CGST Act states that actionable claim other than lottery betting and gambling shall neither be treated as a supply of goods or supply of service.
So, it means not all actionable claims are taxable.