State whether the following are supply of goods/services, as per GST law, with brief reasons: Scrap of machinery destroyed by fire handed over to insurance company for settlement of claim.

As per Clause 2 of Schedule I of the CGST Act, Permanent transfer or disposal of business assets where input tax credit has been availed on such assets is considered as supply. When the machinery destroyed by fire is handed over to insurance company in return for insurance compensation, it is a supply of goods .