THE CENTRAL GOODS AND SERVICES TAX ACT, 2017
PRELIMINARY
Section 2: Definitions
In this Act, unless
the context otherwise requires,––
(1) “actionable claim” shall have
the same meaning as assigned to it in section 3 of the Transfer of Property
Act, 1882;
(2) “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;
(3) “address on record” means the
address of the recipient as available in the records of the supplier;
(4)
“adjudicating authority” means any authority, appointed or authorised
to pass any order or decision under this Act, but does not include the
2[Central
Board of Indirect Taxes and Customs]
[helldod
old[Central
Board of Excise and Customs,]helldod] the Revisional Authority, the Authority for
Advance Ruling, the Appellate Authority for Advance Ruling,
2[the
Appellate Authority, the Appellate Tribunal and the Authority referred to in
sub-section (2) of
section 171]
[helldod
old[the Appellate
Authority and the Appellate Tribunal;
(5)
“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;
(6) “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;
(7) “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;
(8) “Appellate Authority” means an
authority appointed or authorised to hear appeals as
referred to in section 107;
(9) “Appellate Tribunal” means the
Goods and Services Tax Appellate Tribunal constituted under
section 109;
(10) “appointed day” means the date
on which the provisions of this Act shall come into force;
(11) “assessment” means
determination of tax liability under this Act and includes self-assessment,
re-assessment, provisional assessment, summary assessment
and best judgment
assessment;
(12) “associated enterprises” shall
have the same meaning as assigned to it in section 92A of the Income-tax Act,
1961;
(13)
“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;
(14) “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;
(15) “authorised
representative” means the representative as referred to in
section 116;
(16) “Board” means the
1['Central Board of Indirect Taxes and Customs']
[helldod
old[Central Board
of Excise and Customs]helldod]
constituted under the Central
Boards of Revenue Act,
1963;
(17) “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;
2[(h) activities of a race club including by way
of totalisator or a license to book
maker or activities of a licensed book maker in such club; and”;]
[helldod
old[(h) services provided by a race club by way of totalisator
or a licence to book maker in such club ; and]helldod]
(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;
[helldod
3 omit[(18)
“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;]helldod]
(19) “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;
(20)
“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;
(21) “central tax” means the central goods and services tax levied under
section 9;
(22) “cess”
shall have the same meaning as assigned to it in the Goods and Services Tax
(Compensation to States) Act;
(23) “chartered accountant” means a
chartered accountant as defined in clause (b) of sub-section (1) of section 2
of the Chartered Accountants Act, 1949;
(24)
“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;
(25) “Commissioner in the Board” means the Commissioner referred to in
section
168;
(26) “common portal” means the
common goods and services tax electronic portal referred to in
section 146;
(27) “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;
(28) “company secretary” means a
company secretary as defined in clause (c) of sub-section (1) of section 2 of
the Company Secretaries Act, 1980;
(29) “competent authority” means
such authority as may be notified by the Government;
(30)
“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.
*(31) “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;
(32)
“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;
(33) “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;
(34) “conveyance” includes a vessel, an aircraft and a vehicle;
(35) “cost accountant” means a cost
accountant as defined in 2[clause (b)]
[helldod
old[clause (c)]helldod] of sub-section (1) of section 2 of the Cost
and Works
Accountants Act, 1959;
(36) “Council” means the Goods and
Services Tax Council established under article 279A of the Constitution;
(37) “credit note” means a document
issued by a registered person under sub-section (1) of
section 34;
(38) “debit note” means a document
issued by a registered person under sub-section (3) of
section 34;
(39) “deemed exports” means such
supplies of goods as may be notified under section 147;
(40) “designated authority” means
such authority as may be notified by the Board;
(41) “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;
(42) “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;
(43) “electronic cash ledger” means
the electronic cash ledger referred to in subsection (1) of
section 49;
(44) “electronic commerce” means the
supply of goods or services or both, including digital products over digital or
electronic network;
(45) “electronic commerce operator”
means any person who owns, operates or manages digital or electronic facility
or platform for electronic commerce;
(46) “electronic credit ledger”
means the electronic credit ledger referred to in sub-section (2) of
section 49;
(47)
“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;
(48) “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;
(49) “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;
(50)
“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;
(51) “Fund” means the Consumer Welfare Fund established under
section 57;
*(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;
(53) “Government” means the Central Government;
(54) “Goods and Services Tax (Compensation to States) Act” means the Goods and
Services Tax (Compensation to States) Act, 2017;
(55) “goods and services tax practitioner” means any person who has been
approved under section 48 to act as such practitioner;
(56) “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;
(57) “Integrated Goods and Services Tax Act” means the Integrated Goods and
Services Tax Act, 2017;
(58) “integrated tax” means the integrated goods and services tax levied under
the Integrated Goods and Services Tax Act;
(59) “input” means any goods other than capital goods used or intended to be
used by a supplier in the course or furtherance of business;
(60) “input service” means any service used or intended to be used by a
supplier in the course or furtherance of business;
(61) “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;
(62) “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-section (3) and (4) of
section 5 of the Integrated Goods and
Services Tax Act;
(d) the tax payable under the
provisions of sub-section (3) and sub-section (4) of section 9 of the
respective State Goods and Services Tax Act; or
(e) the tax payable under the
provisions of sub-section (3) and sub-section (4) of
section 7 of the Union
Territory Goods and Services Tax Act,
but does not include the tax paid under the
composition levy;
(63) “input tax credit” means the credit of input tax;
(64) “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;
(65) “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;
(66) “invoice” or “tax invoice”
means the tax invoice referred to in section 31;
(67) “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;
(68) “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;
(69) “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 4[and
article 371J] of the Constitution;
or
(g) a Regional Council constituted under article 371A of the Constitution;
(70) “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;
(71) “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;
(72) “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;
(73)
“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;
(74) “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.
(75) “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;
(76) “motor vehicle” shall have the same meaning as assigned to it in clause
(28) of section 2 of the Motor Vehicles Act, 1988;
(77) “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;
(78) “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;
(79) “non-taxable territory” means
the territory which is outside the taxable territory;
(80) “notification” means a
notification published in the Official Gazette and the expressions “notify” and
“notified” shall be construed accordingly;
(81) “other territory” includes
territories other than those comprising in a State and those referred to in
sub-clauses (a) to (e) of clause (114) ;
(82) “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;
(83)
“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;
(84) “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;
(85) “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;
(86) “place of supply” means the
place of supply as referred to in Chapter V of the Integrated Goods and
Services Tax Act;
(87) “prescribed” means prescribed
by rules made under this Act on the recommendations of the Council;
(88) “principal” means a person on
whose behalf an agent carries on the business of supply or receipt of goods or
services or both;
(89) “principal place of business”
means the place of business specified as the principal place of business in the
certificate of registration;
(90) “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;
(91) “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;
(92) “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;
(93) “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;
(94) “registered person” means a
person who is registered under section 25 but does not include a person having
a Unique Identity Number;
(95) “regulations” means the
regulations made by the Board under this Act on the recommendations of the
Council;
(96) “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;
(97) “return” means any return
prescribed or otherwise required to be furnished by or under this Act or the
rules made thereunder;
(98)
“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;
(99) “Revisional Authority” means an authority appointed or authorised
for revision of decision or orders as referred to in
section 108;
(100) “Schedule” means a Schedule appended to this Act;
(101) “securities” shall have the same meaning as assigned to it in clause (h)
of section 2 of the Securities Contracts (Regulation) Act, 1956 ;
*(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;
*4[Explanation.––For the removal of doubts, it is
hereby clarified that the expression “services” includes facilitating or
arranging transactions in securities;]
(103) “State” includes a Union territory with Legislature;
(104) “State tax” means the tax levied under any State Goods and Services Tax
Act;
(105) “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;
(106) “tax period” means the period for which the return is required to be
furnished;
(107) “taxable person” means a
person who is registered or liable to be registered under
section 22 or
section
24;
(108) “taxable supply” means a
supply of goods or services or both which is leviable
to tax under this Act;
(109) “taxable territory” means the
territory to which the provisions of this Act apply;
(110)
“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;
(111) “the State Goods and Services Tax Act” means the respective State Goods
and Services Tax Act, 2017;
(112) “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;
(113) “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;
(114) “Union territory” means the
territory of—
(a) the Andaman and Nicobar Islands;
(b) Lakshadweep;
5[(c) Dadra and Nagar Haveli and Daman
and Diu;
(d) Ladakh]
[helldod old[(c) Dadra and Nagar Haveli;
(d) Daman and Diu] helldod]
(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;
(115) “Union territory tax” means the Union territory goods and services tax levied under the Union Territory Goods and Services Tax Act;
(116) “Union Territory Goods and Services Tax Act” means the Union Territory
Goods and Services Tax Act, 2017;
(117) “valid return” means a return
furnished under sub-section (1) of section 39 on which self-assessed tax has
been paid in full;
*(118)
“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;
(119) “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;
(120) 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;
(121) 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. Substituted Vide Chapter VIII of Finance Bill 2018
2. Substituted Vide: Section 2 of CGST Amendment Act 2018 vide Notification No. 02/2019 - Central Tax (w.e.f. 01.02.2019)
3. Omitted Vide: Section 2 of CGST Amendment Act 2018 vide Notification No. 02/2019 - Central Tax (w.e.f. 01.02.2019)
4. Inserted Vide: Section 2 of CGST Amendment Act 2018 vide Notification No. 02/2019 - Central Tax (w.e.f. 01.02.2019)
5