Section- 2 Definition

Definition

(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;
(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 [clause (b)]7 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 subsection (1) of section 34;
7 Substituted for ―clause (c)‖ by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018)
–Brought into force w.e.f. 01st February, 2019
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(38) ―debit note‖ means a document issued by a registered person under subsection (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 nontaxable 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 TaxAct, 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;
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(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-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;
(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 TaxAct;
(65) ―intra-State supply of services‖ shall have the same meaning as assigned to it in section 8 of the Integrated
Goods and Services TaxAct;
(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[and article 371J]8 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;
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(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 TaxAct;
(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 subclauses (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
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(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;
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(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 sub- section (4) of section 5 of the Integrated Goods and Services TaxAct
(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; [Explanation.–– For the removal of
doubts, it is hereby clarified that the expression ―services‖ includes facilitating or arranging transactions in
securities;]9
(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 TaxAct, 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
interstate 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; (c)
[Dadra and Ungravely and Daman and Diu;] (d) [Ladakh;]11 (e) Chandigarh; and (f) Other territory‖.
Explanation.––For the purposes of this Act, each of the territories specified in subclauses (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;
____________________________________________________________________________________________
9 Inserted by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018) – Brought into force
w.e.f. 01st February, 2019
11 Substituted for ―(c) Dadra and Nagar Haveli; (d) Daman and Diu;‖ by The Finance Act, 2020 (No. 12 of 2020)
–Brought into force w.e.f 30.06.2020
(116) ―Union Territory Goods and Services Tax Act‖ means the Union Territory Goods and Services TaxAct,
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

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