Definitions
Section 2
Bill
PRELIMINARY
MODEL GST LAW – Draft The Central / State Goods and Services Tax Act, 2016 – [November 2016]
2. Definitions
In this Act, unless the context otherwise requires,-
(1) “actionable claim” shall have the meaning assigned to it in section 3 of the Transfer of Property Act, 1882 (4 of 1882);
(2) “address of delivery” means the address of the recipient of goods and/or services indicated on the tax invoice issued by a taxable person for delivery of such goods and/or services;
(3) “address on record” means the address of the recipient as available in the records of the supplier;
(4) “adjudicating authority” means any authority competent to pass any order or decision under this Act, but does not include the Board, the Revisional Authority, Authority for Advance Ruling, Appellate Authority for Advance Ruling, the First Appellate Authority and the Appellate Tribunal;
(5) “agent” means a person, including a factor, broker, commissio
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y farming, stock breeding, the mere cutting of wood or grass, gathering of fruit, raising of man-made forest or rearing of seedlings or plants;
Explanation.- For the purpose of this clause, the expression 'forest' means the forest to which the Indian Forest Act, 1927 (XVI of 1927) applies.
(8) “agriculturist” means a person who cultivates land personally, for the purpose of agriculture;
(9) "Appellate Tribunal" means the National Goods and Services Tax Appellate Tribunal constituted under section 100;
(10) “appointed day'' means the date on which section 1 of this Act comes into effect;
(11) “appropriate Government” means the Central Government in case of the IGST and the CGST, and the State Government in case of the SGST;
(12) “assessment” means determination of tax liability under this Act and includes self-assessment, re-assessment, provisional assessment, summary assessment and best judgement assessment;
(13) "associated enterprise" shall have the
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y benefit;
(b) any activity or transaction in connection with or incidental or ancillary to (a) above;
(c) any activity or transaction in the nature of (a) above, whether or not there is volume, frequency, continuity or regularity of such transaction;
(d) supply or acquisition of goods including capital assets 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, as the case may be;
(f) admission, for a consideration, of persons to any premises; and
(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;
Explanation.- Any activity or transaction undertaken by the Central Government, a State Governme
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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 and/or services in the course or furtherance of business whether as principal, agent or in any other capacity, in a taxable territory where he has no fixed place of business;
(21) “CGST” means the tax levied under the Central Goods and Services Tax Act, 2016;
(22) “chartered accountant” means a chartered accountant within the meaning of the Chartered Accountants Act, 1949 (38 of 1949);
(23) “commissioner” means the Commissioner of Central Goods and Services Tax / Commissioner of State Goods and Services Tax and includes Principal Commissioner of Central Goods and Services Tax / Principal Commissioner of State Goods and Services Tax / Chief Commissioner of State Goods and Services Tax appointed under section 4 of the Central/State Goods and Services Tax Act, 2016;
(24) “common portal” means the com
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e principal supply.
(28) “consideration” in relation to the supply of goods or services 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, 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, whether or not voluntary, in respect of, in response to, or for the inducement of, the supply of goods or services, 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, whether refundable or not, given in respect of the supply of goods or services shall not be considered as payment made for the supply unless the supplier applies the deposit as consideration for the supply;
(29) “continuous journey” means a journey for which a single or
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under a contract, for a period exceeding three months with periodic payment obligations and includes supply of such service as the Central or a State Government may, whether or not subject to any condition, by notification, specify;
(32) “conveyance” includes a vessel, an aircraft and a vehicle;
(33) “cost accountant” means a cost accountant within the meaning of the Cost and Works Accountants Act, 1959 (23 of 1959);
(34) “Council” means the Goods and Services Tax Council established under Article 279A of the Constitution;
(35) “credit note” means a document issued by a taxable person as referred to in sub-section (1) of section 31;
(36) “debit note” means a document issued by a taxable person as referred to in sub-section (3) of section 31;
(37) “deemed exports”, as notified by the Central Government/State Government on the recommendation of the Council, refer to those transactions in which the goods supplied do not leave India, and payment for such supplies is received e
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credit ledger” means the electronic credit ledger referred to in sub-section (2) of section 44;
(44) “exempt supply” means supply of any goods and/or services which are not taxable under this Act and includes such supply of goods and/or services which attract nil rate of tax or which may be exempt from tax under section 11 ;
(45) “First Appellate Authority” means an authority referred to in section 98;
(46) “first stage dealer” means a dealer, who purchases the goods directly from,-
(i) the manufacturer under the cover of an invoice issued in terms of the provisions of Central Excise Rules, 2002 or from the depot of the said manufacturer, or from premises of the consignment agent of the said manufacturer or from where the goods are sold by or on behalf of the said manufacturer, under cover of an invoice; or
(ii) an importer or from the depot of an importer or from the premises of the consignment agent of the importer, under cover of an invoice;
(47) “fixed establishment” me
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and Services Tax Act, 2016;
(52) “input” means any goods other than capital goods used or intended to be used by a supplier in the course or furtherance of business;
(53) “input service” means any service used or intended to be used by a supplier in the course or furtherance of business;
(54) "Input Service Distributor" means an office of the supplier of goods and/or services which receives tax invoices issued under section 28 towards receipt of input services and issues a prescribed document for the purposes of distributing the credit of CGST (SGST in State Acts) and / or IGST paid on the said services to a supplier of taxable goods and / or services having same PAN as that of the office referred to above;
(55) "input tax" in relation to a taxable person, means the IGST, including that on import of goods, CGST and SGST charged on any supply of goods or services to him and includes the tax payable under sub-section (3) of section 8, but does not include the
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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 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 (41 of 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;
(63) “manufacturer” shall have the meaning assigned to it by the Central Excise Act, 1944 (1 of 1944);
(64) “market value” shall mean the full amount which a recipient of a supply is required to pay in order to obtain the goods and/or services of like kind and quality at or about the same time and at the sa
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eparately and is not dependent on any other. It shall not be a mixed supply if these items are supplied separately.
(67) "motor vehicle" has the meaning assigned to it in clause (28) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988);
(68) “non-resident taxable person” means a taxable person who occasionally undertakes transactions involving supply of goods and/or services whether as principal or agent or in any other capacity but who has no fixed place of business in India;
(69) “non-taxable territory” means the territory which is outside the taxable territory;
(70) “notification” means notification published in the Official Gazette and the expressions 'notify' and 'notified' shall be construed accordingly;
(71) “output tax” in relation to a taxable person, means the CGST/SGST chargeable under this Act on taxable supply of goods and/or services made by him or by his agent and excludes tax payable by him on reverse charge basis;
(72) “outward supply” in rel
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(n) every artificial juridical person, not falling within any of the preceding sub-clauses;
(74) “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, provides or receives goods and/or services; 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;
(75) “prescribed'' means prescribed by the rules, regulations or by any notification issued under this Act;
(76) “principal” means a person on whose behalf an agent carries on the business of supply or receipt of goods and/or services;
(77) “principal place of business” means the place of business specified as the principal place of business in the certificate of registration;
(78) “principal supply” means the supply of goods or services which constitutes the predominant element
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tion 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;
Explanation.- The expression “recipient” shall also include an agent acting as such on behalf of the recipient in relation to the goods and/or services supplied.
(82) “registered importer” means the importer registered in terms of the provisions of Central Excise Rules, 2002;
(83) “regulations” means the regulations made by the Commissioner under any provision of the Act on the recommendation of the Council;
(84) persons shall be deemed to be “related persons'' if only –
(a) they are officers or directors of one another's businesses;
(b) they are legally recognized partners in business;
(c) they are employer and employee;
(d) any person directly or indirectly owns, controls or holds twenty five per cent or more of the outstanding voting stock or shares of bo
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eans the liability to pay tax by the recipient of supply of goods or services instead of the supplier of such goods or services in respect of such categories of supplies as notified under sub-section (3) of section 8;
(88) “rules” means the rules made by the Central/State Government under any provision of the Act on the recommendation of the Council;
(89) “schedule” means a schedule appended to this Act;
(90) “securities” shall have meaning assigned to it in sub-section (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956);
(91) “second stage dealer” means a dealer who purchases the goods from a first stage dealer as defined in sub-section (46);
(92) “services'' means anything other than goods;
Explanation 1.- Services include transactions in money but does not include money and securities;
Explanation 2.- Services does not include transaction in money other than an activity relating to the use of money or its conversion by cash or by any other
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) “non-taxable supply'' means a supply of goods or services which is not chargeable to tax under this Act;
(101) “taxable territory'' means the territory to which the provisions of this Act apply;
(102) “Tax Return Preparer" means any person who has been approved to act as a Tax Return Preparer under the scheme framed under section 43;
(103) “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 electro-magnetic means;
(104) “time of supply of goods'' shall have the meaning as assigned to it in section 12 ;
(105) “time of supply of services'' shall have the meaning as assigned to it in section 13;
(106) “to cultivate personally” means
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d taxable person excluding taxes, if any charged under the CGST Act, SGST Act and the IGST Act, as the case may be;
Explanation.- Aggregate turnover does not include the value of inward supplies on which tax is payable by a person on reverse charge basis under sub-section (3) of Section 8 and the value of inward supplies.
(108) “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, as defined in sub-section (73), is incorporated or otherwise legally constituted;
(109) “valid return” means a return furnished under sub-section (1) of section 34 on which self-assessed tax has been paid in full;
(110) “works contract” means a contract wherein transfer of property in goods is involved in the execution of such contract and includes contract for building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation
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