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Section 2 of GST Act: Definitions

Amended and updated notes on section 2 of CGST Act, 2017. Detail discussion on provisions and rules related to definitions.

Amended and updated notes on section 2 of CGST Act, 2017. Detail discussion on provisions and rules related to definitions.

Chapter I (Sections 1–2) of the Central Goods and Services Tax Act, 2017 deals with the provisions related to preliminary. Section 2 of CGST 2017 provides for definitions.

Recently, we have discussed in detail section 1 (Short title, extent, and commencement) of CGST Act 2017. Today, we learn the provisions of section 2 of Central GST Act 2017.

Section 2 of the Central Goods and Services Tax Act, 2017 has been notified by the Ministry of Finance vide Notification No. 1/2017-Central Tax, G.S.R. 605(E), dated 19.06.2017. This notification was come into force from 22nd June 2017 i.e. the commencement date of section 2 is 22-6-2017.

Name of ActThe Central Goods and Services Tax Act 2017
Enacted byParliament of India
Administered byCentral Board of Indirect Taxes & Customs
Governing bodyGST Council
Number of Chapters21
Number of Sections174
You are reading:
Chapter No.I
Chapter NamePreliminary
Section No.2
Section NameDefinitions
Updated 2024 EditionGST Law Book PDF

Table of Contents

Section 2 of Central GST – Definitions1

Section 2 of CGST Act 2017 shall come into force on 22.06.2017 vide Notification No. 1/2017-Central Tax, G.S.R. 605(E), dated 19.06.2017

Detail analysis of the provisions of clause (1) to (121) of Section 2 (Definitions) of the Central Goods and Services Tax (CGST) Act, 2017.

Chapter I (Sections 1-2) of the Central Goods and Services Tax (CGST) Act, 2017 deals with provisions related to title, extent, commencement and definitions. Section 2 of CGST Act 2017 provides for Definitions of various terms used under CGST Act 2017.

You may refer Central Goods and Services Tax (CGST) Rules, 2017 for more detail analysis of the provisions of Section 2 of the CGST Act 2017. Such CGST Rules 2017 has been updated vide Notification No. 3 /2017-Central Tax dated 19th June 2017 and further as amended by Notification No. 7/2017-Central Tax dated 27th June 2017, Notification No. 10/2017-Central Tax dated 28th June 2017 and Notification No. 15/2017-Central Tax dated 1st July 2017.

Relevant Rules for GST Section 2:

  • Rule 2: Definitions.

Actionable Claim [Section 2(1) of CGST Act 2017]:

  1. “Actionable Claim” shall have the same meaning as assigned to it in section 3 of the Transfer of Property Act, 1882;

    According to section 3 (Interpretation Clause) of the Transfer of Property Act, 1882, the term “Actionable Claim” means a claim to any debt, other than a debt secured by mortgage of immovable property or by hypothecation or pledge of movable property, or to any beneficial interest in movable property not in the possession, either actual or constructive, of the claimant, which the civil courts recognize as affording grounds for relief, whether such debt or beneficial interest be existent, accruing, conditional or contingent.

    According to Paragraph 6 of Schedule III read with section 7 of CGST Act 2017, Actionable claims, other than lottery, betting and gambling shall be treated neither as a supply of goods nor a supply of services.

    Further, Actionable Claim relating to lottery, betting and gambling alone will be regarded as ‘goods’ since the definition of goods includes actionable claim. Therefore, only lottery, betting and gambling shall be treated as supplies under the GST regime. All the other actionable claims shall not be supplies.

Address of Delivery [Section 2(2) of CGST Act 2017]:

  1. “Address of Delivery” means the address of the recipient of goods or services or both indicated on the tax invoice issued by a registered person for delivery of such goods or services or both;

    Address of delivery would be a key pointer towards the location of goods at the time of delivery to the recipient. In other words, it is relevant to determine Place of Supply of goods other than imports/ exports.

Address on Record [Section 2(3) of CGST Act 2017]:

  1. “Address on Record” means the address of the recipient as available in the records of the supplier;

    Address on record help you to determine the Place of Supply of services made to an unregistered person by a registered person in relation to services. As per section 12(2)(i) of IGST Act 2017, the place of supply of services made to any person other than a registered person shall be the location of the recipient where the address on record exists.

Adjudicating Authority [Section 2(4) of CGST Act 2017]:

  1. “Adjudicating Authority” means any authority, appointed or authorised to pass any order or decision under this Act, but does not include the Central Board of Excise and Customs, the Revisional Authority, the Authority for Advance Ruling, the Appellate Authority for Advance Ruling, the Appellate Authority and the Appellate Tribunal;

    Adjudicating Authority means any authority, appointed or authorised to pass any order or decision under CGST Act 2017. However, the following authorities are not permitted to pass an order/ decision under the GST laws and hence shall not be an Adjudicating Authority:
    • 1) The Central Board of Indirect Taxes and Customs
    • 2) Revisional Authority
    • 3) Authority for Advance Ruling
    • 4) Appellate Authority for Advance Ruling
    • 5) Appellate Authority
    • 6) Appellate Tribunal
    • 7) Authority referred to in sub-section (2) of section 171

Agent [Section 2(5) of CGST Act 2017]:

  1. “Agent” means a person, including a factor, broker, commission agent, arhatia, del credere agent, an auctioneer or any other mercantile agent, by whatever name called, who carries on the business of supply or receipt of goods or services or both on behalf of another;

    As per Rule 56(11) of CGST Rule 2017, every agent shall maintain accounts depicting the,-
    • particulars of authorisation received by him from each principal to receive or supply goods or services on behalf of such principal separately;
    • particulars including description, value and quantity (wherever applicable) of goods or services received on behalf of every principal;
    • particulars including description, value and quantity (wherever applicable) of goods or services supplied on behalf of every principal;
    • details of accounts furnished to every principal; and
    • tax paid on receipts or on supply of goods or services effected on behalf of every principal.

Aggregate Turnover [Section 2(6) of CGST Act 2017]:

  1. “Aggregate Turnover” means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and inter-State supplies of persons having the same Permanent Account Number, to be computed on all India basis but excludes central tax, State tax, Union territory tax, integrated tax and cess;

    Aggregate turnover is relevant mainly for two purposes:
    • To determine threshold limit to opt for composition scheme; and
    • To determine threshold limit to obtain registration.

      Following supplies are covered under aggregate turnover:
      • A) Export of goods
      • B) Export of services
      • C) Zero-rated supplies
      • D) Taxable supplies
      • E) Exempt supplies:
        • Supplies that have a ‘NIL’ rate of tax;
        • Supplies that are wholly exempted from GST Law;
        • Supplies that are not taxable under GST Law i.e. alcoholic liquor for human consumption.

However, the following supplies are not covered under aggregate turnover:

  • Inward supplies effected by a person which are liable to tax under reverse charge mechanism; and
  • Various taxes under the GST law, Compensation cess.

Agriculturist [Section 2(7) of CGST Act 2017]:

  1. “Agriculturist” means an individual or a Hindu Undivided Family who undertakes cultivation of land—
    • (a) by own labour, or
    • (b) by the labour of family, or
    • (c) by servants on wages payable in cash or kind or by hired labour under personal supervision or the personal supervision of any member of the family;

Appellate Authority [Section 2(8) of CGST Act 2017]:

  1. “Appellate Authority” means an authority appointed or authorised to hear appeals as referred to in section 107;

Appellate Tribunal [Section 2(9) of CGST Act 2017]:

  1. “Appellate Tribunal” means the Goods and Services Tax Appellate Tribunal constituted under section 109;

Appointed Day [Section 2(10) of CGST Act 2017]:

  1. “Appointed Day” means the date on which the provisions of this Act shall come into force;

Assessment [Section 2(11) of CGST Act 2017]:

  1. “Assessment” means determination of tax liability under this Act and includes self-assessment, re-assessment, provisional assessment, summary assessment and best judgment assessment;

Associated Enterprises [Section 2(12) of CGST Act 2017]:

  1. “Associated Enterprises” shall have the same meaning as assigned to it in section 92A of the Income-tax Act, 1961;

Accordingly, “associated enterprise”, in relation to another enterprise, means an enterprise—

(a) which participates, directly or indirectly, or through one or more intermediaries, in the management or control or capital of the other enterprise; or

(b) in respect of which one or more persons who participate, directly or indirectly, or through one or more intermediaries, in its management or control or capital, are the same persons who participate, directly or indirectly, or through one or more intermediaries, in the management or control or capital of the other enterprise.

Audit [Section 2(13) of CGST Act 2017]:

  1. “Audit” means the examination of records, returns and other documents maintained or furnished by the registered person under this Act or the rules made thereunder or under any other law for the time being in force to verify the correctness of turnover declared, taxes paid, refund claimed and input tax credit availed, and to assess his compliance with the provisions of this Act or the rules made thereunder;

Authorised Bank [Section 2(14) of CGST Act 2017]:

  1. “Authorised Bank” shall mean a bank or a branch of a bank authorised by the Government to collect the tax or any other amount payable under this Act;

Authorised Representative [Section 2(15) of CGST Act 2017]:

  1. “Authorised Representative” means the representative as referred to in section 116;

Accordingly, the expression “authorised representative” shall mean a person authorised by the person referred to in Section 116(1) to appear on his behalf, being—

  • (a) his relative or regular employee; or
  • (b) an advocate who is entitled to practice in any court in India, and who has not been debarred from practicing before any court in India; or
  • (c) any chartered accountant, a cost accountant or a company secretary, who holds a certificate of practice and who has not been debarred from practice; or
  • (d) a retired officer of the Commercial Tax Department of any State Government or Union territory or of the Board who, during his service under the Government, had worked in a post not below the rank than that of a Group-B Gazetted officer for a period of not less than two years.

Board [Section 2(16) of CGST Act 2017]:

  1. “Board” means the Central Board of Excise and Customs constituted under the Central Boards of Revenue Act, 1963;

Business [Section 2(17) of CGST Act 2017]:

  1. “Business” includes––
    • (a) any trade, commerce, manufacture, profession, vocation, adventure, wager or any other similar activity, whether or not it is for a pecuniary benefit;
    • (b) any activity or transaction in connection with or incidental or ancillary to sub-clause (a);
    • (c) any activity or transaction in the nature of sub-clause (a), whether or not there is volume, frequency, continuity or regularity of such transaction;
    • (d) supply or acquisition of goods including capital goods and services in connection with commencement or closure of business;
    • (e) provision by a club, association, society, or any such body (for a subscription or any other consideration) of the facilities or benefits to its members;
    • (f) admission, for a consideration, of persons to any premises;
    • (g) services supplied by a person as the holder of an office which has been accepted by him in the course or furtherance of his trade, profession or vocation;
    • (h) services provided by a race club by way of totalisator or a licence to book maker in such club; and
    • (i) any activity or transaction undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities;

Business Vertical [Section 2(18) of CGST Act 2017 – Omitted by CGST (Amendment) Act, 2018]:

  1. “Business Vertical” means a distinguishable component of an enterprise that is engaged in the supply of individual goods or services or a group of related goods or services which is subject to risks and returns that are different from those of the other business verticals.

Explanation: For the purposes of this clause, factors that should be considered in determining whether goods or services are related include––

  • (a) the nature of the goods or services;
  • (b) the nature of the production processes;
  • (c) the type or class of customers for the goods or services;
  • (d) the methods used to distribute the goods or supply of services; and
  • (e) the nature of regulatory environment (wherever applicable), including banking, insurance, or public utilities;

Capital Goods [Section 2(19) of CGST Act 2017]:

  1. “Capital Goods” means goods, the value of which is capitalised in the books of account of the person claiming the input tax credit and which are used or intended to be used in the course or furtherance of business;

Casual Taxable Person [Section 2(20) of CGST Act 2017]:

  1. “Casual Taxable Person” means a person who occasionally undertakes transactions involving supply of goods or services or both in the course or furtherance of business, whether as principal, agent or in any other capacity, in a State or a Union territory where he has no fixed place of business;

Central Tax [Section 2(21) of CGST Act 2017]:

  1. “Central Tax” means the central goods and services tax levied under section 9;

Cess [Section 2(22) of CGST Act 2017]:

  1. “Cess” shall have the same meaning as assigned to it in the Goods and Services Tax (Compensation to States) Act;

Chartered Accountant [Section 2(23) of CGST Act 2017]:

  1. “Chartered Accountant” means a chartered accountant as defined in clause (b) of sub-section (1) of section 2 of the Chartered Accountants Act, 1949;

Commissioner [Section 2(24) of CGST Act 2017]:

  1. “Commissioner” means the Commissioner of central tax and includes the Principal Commissioner of central tax appointed under section 3 and the Commissioner of integrated tax appointed under the Integrated Goods and Services Tax Act;

Commissioner in the Board [Section 2(25) of CGST Act 2017]:

  1. “Commissioner in the Board” means the Commissioner referred to in section 168;

Common Portal [Section 2(26) of CGST Act 2017]:

  1. “Common Portal” means the common goods and services tax electronic portal referred to in section 146;

Common Working Days [Section 2(27) of CGST Act 2017]:

  1. “Common Working Days” in respect of a State or Union territory shall mean such days in succession which are not declared as Gazetted holidays by the Central Government or the concerned State or Union territory Government;

Company Secretary [Section 2(28) of CGST Act 2017]:

  1. “Company Secretary” means a company secretary as defined in clause (c) of sub-section (1) of section 2 of the Company Secretaries Act, 1980;

Competent Authority [Section 2(29) of CGST Act 2017]:

  1. “Competent Authority” means such authority as may be notified by the Government;

Composite Supply [Section 2(30) of CGST Act 2017]:

  1. “Composite Supply” means a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply;

Illustration: Where goods are packed and transported with insurance, the supply of goods, packing materials, transport and insurance is a composite supply and supply of goods is a principal supply;

Consideration [Section 2(31) of CGST Act 2017]:

  1. “Consideration” in relation to the supply of goods or services or both includes––
    • (a) any payment made or to be made, whether in money or otherwise, in respect of, in response to, or for the inducement of, the supply of goods or services or both, whether by the recipient or by any other person but shall not include any subsidy given by the Central Government or a State Government;
    • (b) the monetary value of any act or forbearance, in respect of, in response to, or for the inducement of, the supply of goods or services or both, whether by the recipient or by any other person but shall not include any subsidy given by the Central Government or a State Government:

Provided that a deposit given in respect of the supply of goods or services or both shall not be considered as payment made for such supply unless the supplier applies such deposit as consideration for the said supply;

Continuous Supply of Goods [Section 2(32) of CGST Act 2017]:

  1. “Continuous Supply of Goods” means a supply of goods which is provided, or agreed to be provided, continuously or on recurrent basis, under a contract, whether or not by means of a wire, cable, pipeline or other conduit, and for which the supplier invoices the recipient on a regular or periodic basis and includes supply of such goods as the Government may, subject to such conditions, as it may, by notification, specify;

Continuous Supply of Services [Section 2(33) of CGST Act 2017]:

  1. “Continuous Supply of Services” means a supply of services which is provided, or agreed to be provided, continuously or on recurrent basis, under a contract, for a period exceeding three months with periodic payment obligations and includes supply of such services as the Government may, subject to such conditions, as it may, by notification, specify;

Conveyance [Section 2(34) of CGST Act 2017]:

  1. “Conveyance” includes a vessel, an aircraft and a vehicle;

Cost Accountant [Section 2(35) of CGST Act 2017]:

  1. “Cost Accountant” means a cost accountant as defined in clause (c) of sub-section (1) of section 2 of the Cost and Works Accountants Act, 1959;

Council [Section 2(36) of CGST Act 2017]:

  1. “Council” means the Goods and Services Tax Council established under article 279A of the Constitution;

Credit Note [Section 2(37) of CGST Act 2017]:

  1. “Credit Note” means a document issued by a registered person under sub-section (1) of section 34;

Debit Note [Section 2(38) of CGST Act 2017]:

  1. “Debit Note” means a document issued by a registered person under sub-section (3) of section 34;

Deemed Exports [Section 2(39) of CGST Act 2017]:

  1. “Deemed Exports” means such supplies of goods as may be notified under section 147;

Designated Authority [Section 2(40) of CGST Act 2017]:

  1. “Designated Authority” means such authority as may be notified by the Board;

Document [Section 2(41) of CGST Act 2017]:

  1. “Document” includes written or printed record of any sort and electronic record as defined in clause (t) of section 2 of the Information Technology Act, 2000;

Drawback [Section 2(42) of CGST Act 2017]:

  1. “Drawback” in relation to any goods manufactured in India and exported, means the rebate of duty, tax or cess chargeable on any imported inputs or on any domestic inputs or input services used in the manufacture of such goods;

Electronic Cash Ledger [Section 2(43) of CGST Act 2017]:

  1. “Electronic Cash Ledger” means the electronic cash ledger referred to in subsection (1) of section 49;

Electronic Commerce [Section 2(44) of CGST Act 2017]:

  1. “Electronic Commerce” means the supply of goods or services or both, including digital products over digital or electronic network;

Electronic Commerce Operator [Section 2(45) of CGST Act 2017]:

  1. “Electronic Commerce Operator” means any person who owns, operates or manages digital or electronic facility or platform for electronic commerce;

Electronic Credit Ledger [Section 2(46) of CGST Act 2017]:

  1. “Electronic Credit Ledger” means the electronic credit ledger referred to in sub-section (2) of section 49;

Exempt Supply [Section 2(47) of CGST Act 2017]:

  1. “Exempt Supply” means supply of any goods or services or both which attracts nil rate of tax or which may be wholly exempt from tax under section 11, or under section 6 of the Integrated Goods and Services Tax Act, and includes non-taxable supply;

Existing Law [Section 2(48) of CGST Act 2017]:

  1. “Existing Law” means any law, notification, order, rule or regulation relating to levy and collection of duty or tax on goods or services or both passed or made before the commencement of this Act by Parliament or any Authority or person having the power to make such law, notification, order, rule or regulation;

Family [Section 2(49) of CGST Act 2017]:

  1. “Family” means, ––
    • (i) the spouse and children of the person, and
    • (ii) the parents, grand-parents, brothers and sisters of the person if they are wholly or mainly dependent on the said person;

Fixed Establishment [Section 2(50) of CGST Act 2017]:

  1. “Fixed Establishment” means a place (other than the registered place of business) which is characterised by a sufficient degree of permanence and suitable structure in terms of human and technical resources to supply services, or to receive and use services for its own needs;

Fund [Section 2(51) of CGST Act 2017]:

  1. “Fund” means the Consumer Welfare Fund established under section 57;

Goods [Section 2(52) of CGST Act 2017]:

  1. “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;

Government [Section 2(53) of CGST Act 2017]:

  1. “Government” means the Central Government;

Goods and Services Tax (Compensation to States) Act [Section 2(54) of CGST Act 2017]:

  1. “Goods and Services Tax (Compensation to States) Act” means the Goods and Services Tax (Compensation to States) Act, 2017;

Goods and Services Tax Practitioner [Section 2(55) of CGST Act 2017]:

  1. “Goods and Services Tax Practitioner” means any person who has been approved under section 48 to act as such practitioner;

India [Section 2(56) of CGST Act 2017]:

  1. “India” means the territory of India as referred to in article 1 of the Constitution, its territorial waters, seabed and sub-soil underlying such waters, continental shelf, exclusive economic zone or any other maritime zone as referred to in the Territorial Waters, Continental Shelf, Exclusive Economic Zone and other Maritime Zones Act, 1976, and the air space above its territory and territorial waters;

Integrated Goods and Services Tax Act [Section 2(57) of CGST Act 2017]:

  1. “Integrated Goods and Services Tax Act” means the Integrated Goods and Services Tax Act, 2017;

Integrated Tax [Section 2(58) of CGST Act 2017]:

  1. “Integrated Tax” means the integrated goods and services tax levied under the Integrated Goods and Services Tax Act;

Input [Section 2(59) of CGST Act 2017]:

  1. “Input” means any goods other than capital goods used or intended to be used by a supplier in the course or furtherance of business;

Input Service [Section 2(60) of CGST Act 2017]:

  1. “Input Service” means any service used or intended to be used by a supplier in the course or furtherance of business;

Input Service Distributor [Section 2(61) of CGST Act 2017]:

  1. “Input Service Distributor” means an office of the supplier of goods or services or both which receives tax invoices issued under section 31 towards the receipt of input services and issues a prescribed document for the purposes of distributing the credit of central tax, State tax, integrated tax or Union territory tax paid on the said services to a supplier of taxable goods or services or both having the same Permanent Account Number as that of the said office;

Input Tax [Section 2(62) of CGST Act 2017]:

  1. “Input Tax” in relation to a registered person, means the central tax, State tax, integrated tax or Union territory tax charged on any supply of goods or services or both made to him and includes—
    • (a) the integrated goods and services tax charged on import of goods;
    • (b) the tax payable under the provisions of sub-sections (3) and (4) of section 9;
    • (c) the tax payable under the provisions of sub-sections (3) and (4) of section 5 of the Integrated Goods and Services Tax Act;
    • (d) the tax payable under the provisions of sub-sections (3) and (4) of section 9 of the respective State Goods and Services Tax Act; or
    • (e) the tax payable under the provisions of sub-sections (3) and (4) of section 7 of the Union Territory Goods and Services Tax Act, but does not include the tax paid under the composition levy;

Input Tax Credit [Section 2(63) of CGST Act 2017]:

  1. “Input Tax Credit” means the credit of input tax;

Intra-State Supply of Goods [Section 2(64) of CGST Act 2017]:

  1. “Intra-State Supply of Goods” shall have the same meaning as assigned to it in section 8 of the Integrated Goods and Services Tax Act;

Intra-State Supply of Services [Section 2(65) of CGST Act 2017]:

  1. “Intra-State Supply of Services” shall have the same meaning as assigned to it in section 8 of the Integrated Goods and Services Tax Act;

Invoice or Tax Invoice [Section 2(66) of CGST Act 2017]:

  1. “Invoice” or “Tax Invoice” means the tax invoice referred to in section 31;

Inward Supply [Section 2(67) of CGST Act 2017]:

  1. “Inward Supply” in relation to a person, shall mean receipt of goods or services or both whether by purchase, acquisition or any other means with or without consideration;

Job Work [Section 2(68) of CGST Act 2017]:

  1. “Job Work” means any treatment or process undertaken by a person on goods belonging to another registered person and the expression “job worker” shall be construed accordingly;

Local Authority [Section 2(69) of CGST Act 2017]:

  1. “Local Authority” means––
    • (a) a “Panchayat” as defined in clause (d) of article 243 of the Constitution;
    • (b) a “Municipality” as defined in clause (e) of article 243P of the Constitution;
    • (c) a Municipal Committee, a Zilla Parishad, a District Board, and any other authority legally entitled to, or entrusted by the Central Government or any State Government with the control or management of a municipal or local fund;
    • (d) a Cantonment Board as defined in section 3 of the Cantonments Act, 2006;
    • (e) a Regional Council or a District Council constituted under the Sixth Schedule to the Constitution;
    • (f) a Development Board constituted under article 371 of the Constitution; or
    • (g) a Regional Council constituted under article 371A of the Constitution;

Location of the Recipient of Services [Section 2(70) of CGST Act 2017]:

  1. “Location of the Recipient of Services” means, —
    • (a) where a supply is received at a place of business for which the registration has been obtained, the location of such place of business;
    • (b) where a supply is received at a place other than the place of business for which registration has been obtained (a fixed establishment elsewhere), the location of such fixed establishment;
    • (c) where a supply is received at more than one establishment, whether the place of business or fixed establishment, the location of the establishment most directly concerned with the receipt of the supply; and
    • (d) in absence of such places, the location of the usual place of residence of the recipient;

Location of the Supplier of Services [Section 2(71) of CGST Act 2017]:

  1. “Location of the Supplier of Services” means,—
    • (a) where a supply is made from a place of business for which the registration has been obtained, the location of such place of business;
    • (b) where a supply is made from a place other than the place of business for which registration has been obtained (a fixed establishment elsewhere), the location of such fixed establishment;
    • (c) where a supply is made from more than one establishment, whether the place of business or fixed establishment, the location of the establishment most directly concerned with the provisions of the supply; and
    • (d) in absence of such places, the location of the usual place of residence of the supplier;

Manufacture [Section 2(72) of CGST Act 2017]:

  1. “Manufacture” means processing of raw material or inputs in any manner that results in emergence of a new product having a distinct name, character and use and the term “manufacturer” shall be construed accordingly;

Market Value [Section 2(73) of CGST Act 2017]:

  1. “Market Value” shall mean the full amount which a recipient of a supply is required to pay in order to obtain the goods or services or both of like kind and quality at or about the same time and at the same commercial level where the recipient and the supplier are not related;

Mixed Supply [Section 2(74) of CGST Act 2017]:

  1. “Mixed Supply” means two or more individual supplies of goods or services, or any combination thereof, made in conjunction with each other by a taxable person for a single price where such supply does not constitute a composite supply.

Illustration: A supply of a package consisting of canned foods, sweets, chocolates, cakes, dry fruits, aerated drinks and fruit juices when supplied for a single price is a mixed supply. Each of these items can be supplied separately and is not dependent on any other. It shall not be a mixed supply if these items are supplied separately;

Money [Section 2(75) of CGST Act 2017]:

  1. “Money” means the Indian legal tender or any foreign currency, cheque, promissory note, bill of exchange, letter of credit, draft, pay order, traveller cheque, money order, postal or electronic remittance or any other instrument recognised by the Reserve Bank of India when used as a 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;

Motor Vehicle [Section 2(76) of CGST Act 2017]:

  1. “Motor Vehicle” shall have the same meaning as assigned to it in clause (28) of section 2 of the Motor Vehicles Act, 1988;

Non-resident Taxable Person [Section 2(77) of CGST Act 2017]:

  1. “Non-resident Taxable Person” means any person who occasionally undertakes transactions involving supply of goods or services or both, whether as principal or agent or in any other capacity, but who has no fixed place of business or residence in India;

Non-taxable Supply [Section 2(78) of CGST Act 2017]:

  1. “Non-taxable Supply” means a supply of goods or services or both which is not leviable to tax under this Act or under the Integrated Goods and Services Tax Act;

Non-taxable Territory [Section 2(79) of CGST Act 2017]:

  1. “Non-taxable Territory” means the territory which is outside the taxable territory;

Notification [Section 2(80) of CGST Act 2017]:

  1. “Notification” means a notification published in the Official Gazette and the expressions “notify” and “notified” shall be construed accordingly;

Other Territory [Section 2(81) of CGST Act 2017]:

  1. “Other Territory” includes territories other than those comprising in a State and those referred to in sub-clauses (a) to (e) of clause (114);

Output Tax [Section 2(82) of CGST Act 2017]:

  1. “Output Tax” in relation to a taxable person, means the tax chargeable under this Act on taxable supply of goods or services or both made by him or by his agent but excludes tax payable by him on reverse charge basis;

Outward Supply [Section 2(83) of CGST Act 2017]:

  1. “Outward Supply” in relation to a taxable person, means supply of goods or services or both, whether by sale, transfer, barter, exchange, licence, rental, lease or disposal or any other mode, made or agreed to be made by such person in the course or furtherance of business;

Person [Section 2(84) of CGST Act 2017]:

  1. “Person” includes—
    • (a) an individual;
    • (b) a Hindu Undivided Family;
    • (c) a company;
    • (d) a firm;
    • (e) a Limited Liability Partnership;
    • (f) an association of persons or a body of individuals, whether incorporated or not, in India or outside India;
    • (g) any corporation established by or under any Central Act, State Act or Provincial Act or a Government company as defined in clause (45) of section 2 of the Companies Act, 2013;
    • (h) any body corporate incorporated by or under the laws of a country outside India;
    • (i) a co-operative society registered under any law relating to co-operative societies;
    • (j) a local authority;
    • (k) Central Government or a State Government;
    • (l) society as defined under the Societies Registration Act, 1860;
    • (m) trust; and
    • (n) every artificial juridical person, not falling within any of the above;

Place of Business [Section 2(85) of CGST Act 2017]:

  1. “Place of Business” includes––
    • (a) a place from where the business is ordinarily carried on, and includes a warehouse, a godown or any other place where a taxable person stores his goods, supplies or receives goods or services or both; or
    • (b) a place where a taxable person maintains his books of account; or
    • (c) a place where a taxable person is engaged in business through an agent, by whatever name called;

Place of Supply [Section 2(86) of CGST Act 2017]:

  1. “Place of Supply” means the place of supply as referred to in Chapter V of the Integrated Goods and Services Tax Act;

Prescribed [Section 2(87) of CGST Act 2017]:

  1. “Prescribed” means prescribed by rules made under this Act on the recommendations of the Council;

Principal [Section 2(88) of CGST Act 2017]:

  1. “Principal” means a person on whose behalf an agent carries on the business of supply or receipt of goods or services or both;

Principal Place of Business [Section 2(89) of CGST Act 2017]:

  1. “Principal Place of Business” means the place of business specified as the principal place of business in the certificate of registration;

Principal Supply [Section 2(90) of CGST Act 2017]:

  1. “Principal Supply” means the supply of goods or services which constitutes the predominant element of a composite supply and to which any other supply forming part of that composite supply is ancillary;

Proper Officer [Section 2(91) of CGST Act 2017]:

  1. “Proper Officer” in relation to any function to be performed under this Act, means the Commissioner or the officer of the central tax who is assigned that function by the Commissioner in the Board;

Quarter [Section 2(92) of CGST Act 2017]:

  1. “Quarter” shall mean a period comprising three consecutive calendar months, ending on the last day of March, June, September and December of a calendar year;

Recipient [Section 2(93) of CGST Act 2017]:

  1. “Recipient” of supply of goods or services or both, means—
    • (a) where a consideration is payable for the supply of goods or services or both, the person who is liable to pay that consideration;
    • (b) where no consideration is payable for the supply of goods, the person to whom the goods are delivered or made available, or to whom possession or use of the goods is given or made available; and
    • (c) where no consideration is payable for the supply of a service, the person to whom the service is rendered, and any reference to a person to whom a supply is made shall be construed as a reference to the recipient of the supply and shall include an agent acting as such on behalf of the recipient in relation to the goods or services or both supplied;

Registered Person [Section 2(94) of CGST Act 2017]:

  1. “Registered Person” means a person who is registered under section 25 but does not include a person having a Unique Identity Number;

Regulations [Section 2(95) of CGST Act 2017]:

  1. “Regulations” means the regulations made by the Board under this Act on the recommendations of the Council;

Removal [Section 2(96) of CGST Act 2017]:

  1. “Removal’’ in relation to goods, means—
    • (a) despatch of the goods for delivery by the supplier thereof or by any other person acting on behalf of such supplier; or
    • (b) collection of the goods by the recipient thereof or by any other person acting on behalf of such recipient;

Return [Section 2(97) of CGST Act 2017]:

  1. “Return” means any return prescribed or otherwise required to be furnished by or under this Act or the rules made thereunder;

Reverse Charge [Section 2(98) of CGST Act 2017]:

  1. “Reverse Charge” means the liability to pay tax by the recipient of supply of goods or services or both instead of the supplier of such goods or services or both under sub-section (3) or sub-section (4) of section 9, or under sub-section (3) or subsection (4) of section 5 of the Integrated Goods and Services Tax Act;

Revisional Authority [Section 2(99) of CGST Act 2017]:

  1. “Revisional Authority” means an authority appointed or authorised for revision of decision or orders as referred to in section 108;

Schedule [Section 2(100) of CGST Act 2017]:

  1. “Schedule” means a Schedule appended to this Act;

Securities [Section 2(101) of CGST Act 2017]:

  1. “Securities” shall have the same meaning as assigned to it in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956;

Services [Section 2(102) of CGST Act 2017]:

  1. “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;

State [Section 2(103) of CGST Act 2017]:

  1. “State” includes a Union territory with Legislature;

State Tax [Section 2(104) of CGST Act 2017]:

  1. “State Tax” means the tax levied under any State Goods and Services Tax Act;

Supplier [Section 2(105) of CGST Act 2017]:

  1. “Supplier” in relation to any goods or services or both, shall mean the person supplying the said goods or services or both and shall include an agent acting as such on behalf of such supplier in relation to the goods or services or both supplied;

Tax Period [Section 2(106) of CGST Act 2017]:

  1. “Tax Period” means the period for which the return is required to be furnished;

Taxable Person [Section 2(107) of CGST Act 2017]:

  1. “Taxable Person” means a person who is registered or liable to be registered under section 22 or section 24;

Taxable Supply [Section 2(108) of CGST Act 2017]:

  1. “Taxable Supply” means a supply of goods or services or both which is leviable to tax under this Act;

Taxable Territory [Section 2(109) of CGST Act 2017]:

  1. “Taxable Territory” means the territory to which the provisions of this Act apply;

Telecommunication Service [Section 2(110) of CGST Act 2017]:

  1. “Telecommunication Service” means service of any description (including electronic mail, voice mail, data services, audio text services, video text services, radio paging and cellular mobile telephone services) which is made available to users by means of any transmission or reception of signs, signals, writing, images and sounds or intelligence of any nature, by wire, radio, visual or other electromagnetic means;

The State Goods and Services Tax Act [Section 2(111) of CGST Act 2017]:

  1. “The State Goods and Services Tax Act” means the respective State Goods and Services Tax Act, 2017;

Turnover in State or Turnover in Union Territory [Section 2(112) of CGST Act 2017]:

  1. “Turnover in State” or “Turnover in Union Territory” means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis) and exempt supplies made within a State or Union territory by a taxable person, exports of goods or services or both and inter-State supplies of goods or services or both made from the State or Union territory by the said taxable person but excludes central tax, State tax, Union territory tax, integrated tax and cess;

In accordance with Rule 89(4) of CGST Rule 2017, for calculating refund amount Adjusted Total turnover means the turnover in a State or a Union territory, as defined above excluding the value of exempt supplies other than zero-rated supplies, during the relevant period.

Usual Place of Residence [Section 2(113) of CGST Act 2017]:

  1. “Usual Place of Residence” means––
    • (a) in case of an individual, the place where he ordinarily resides;
    • (b) in other cases, the place where the person is incorporated or otherwise legally constituted;

Union Territory [Section 2(114) of CGST Act 2017]:

  1. “Union Territory” means the territory of—
    • (a) the Andaman and Nicobar Islands;
    • (b) Lakshadweep;
    • (c) Dadra and Nagar Haveli;
    • (d) Daman and Diu;
    • (e) Chandigarh; and
    • (f) other territory.

Explanation: For the purposes of this Act, each of the territories specified in sub-clauses (a) to (f) shall be considered to be a separate Union territory;

Union Territory Tax [Section 2(115) of CGST Act 2017]:

  1. “Union Territory Tax” means the Union territory goods and services tax levied under the Union Territory Goods and Services Tax Act;

Union Territory Goods and Services Tax Act [Section 2(116) of CGST Act 2017]:

  1. “Union Territory Goods and Services Tax Act” means the Union Territory Goods and Services Tax Act, 2017;

Valid Return [Section 2(117) of CGST Act 2017]:

  1. “Valid Return” means a return furnished under sub-section (1) of section 39 on which self-assessed tax has been paid in full;

Voucher [Section 2(118) of CGST Act 2017]:

  1. “Voucher” means an instrument where there is an obligation to accept it as consideration or part consideration for a supply of goods or services or both and where the goods or services or both to be supplied or the identities of their potential suppliers are either indicated on the instrument itself or in related documentation, including the terms and conditions of use of such instrument;

Works Contract [Section 2(119) of CGST Act 2017]:

  1. “Works Contract” means a contract for building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning of any immovable property wherein transfer of property in goods (whether as goods or in some other form) is involved in the execution of such contract;

Section 2(120) of CGST Act 2017:

  1. Words and expressions used and not defined in this Act but defined in the Integrated Goods and Services Tax Act, the Union Territory Goods and Services Tax Act and the Goods and Services Tax (Compensation to States) Act shall have the same meaning as assigned to them in those Acts;

Section 2(121) of CGST Act 2017:

  1. Any reference in this Act to a law which is not in force in the State of Jammu and Kashmir, shall, in relation to that State be construed as a reference to the corresponding law, if any, in force in that State.
  1. Section 2 of CGST Act 2017 shall come into force on 22.06.2017 vide Notification No. 1/2017-Central Tax, G.S.R. 605(E), dated 19.06.2017. ↩︎

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