Classification as the Trojan Horse

Classication as the Trojan Horse. GST doesn’t usually fail at the rate stage. It fails much earlier, at the supply stage. What if most “classification disputes” under GST aren’t really about composite supply, mixed supply, or whether something is goods or services at all. What if classification has quietly become a Trojan horse, smuggling tax liability into cases where the foundational question of whether a supply exists was never answered in the first place. This note by J the App by JustIDT unpacks how GST analysis is increasingly inverted: how SAC codes are treated as proof of taxability, how composite and mixed supply logic is used to bypass Section 7 altogether, and how goods vs services distinctions are weaponised to foreclose exemption and non-taxability arguments. At its core, it argues for restoring first principles, classification must follow supply, not manufacture it.