INTERPRETATION OF CENTRAL GOODS AND SERVICES TAX (CGST) ACT (PART-8) (Meaning of Important Terms)
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
Dated:- 5-6-2017
This part of the series contains meanings of certain terms covered in Section 2 of the CGST Act, 2017. These are Tax Invoice, Inward Supply, Job Work, Local Authority, Market Value, Mixed Supply and Money.
Invoice [Section 2(66)]
'Invoice' or 'tax invoice' means the tax invoice referred to in section 31. 'Tax invoice' is required to be issued by a registered taxable person showing description of goods and/or services, value, tax and other particulars at the time of supply. It is a document evidencing supply of goods and services which becomes the basis for charge of tax. 'Tax invoice' shall be deemed to include a document issued by an input service distributor(ISD).
'Tax invoice' shall be deemed to include-
* a document issued by an input service distributor, and
* any su
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f supply to be an inward supply. Similarly, payment of consideration for such receipt of goods and / or services will also be not a factor in determination of inward supply.
Inward supply may be with or without consideration.
Job Work [Section 2(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.
Job work is any treatment or process which is undertaken by a person on goods belonging to other registered person. The person on whose goods, some activity or process is carried out is called the principal and the person who carries out such process is called the job worker.
The consideration which is paid to the job worker is called the job work charges and carrying out the activity of job work will constitute as provision of services by job worker.
Job work activity carried out on the goods belonging to an unregistered person will not be cov
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egional Council constituted under article 371A of the Constitution;
Market Value [Section 2(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.
Market value implies full value / amount which a recipient is required to pay for same quality, kind, at same time, at same commercial level and both parties are not related.
It may be noted that the concept of market value has not been used in the Act for determination of taxable liability of supplier.
The concept of market value has been used only in section 130 providing for the option to pay fine in lieu of confiscation of goods and the value of the fine not to exceed market value of goods. Other than for levy of the maximum value of fine which can be imposed at the time of confiscation of the goods,
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#39;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;
'Money' means and includes:
* 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
Money shall not include any currency that is held for its numismatic value. Money is not &#
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