GST – Definitions – An analysis
By: – Balasubramanian Natarajan
Goods and Services Tax – GST
Dated:- 12-8-2016
Section
Content
Our Comments
2(6)
(6) “aggregate turnover” means the aggregate value of all taxable and non-taxable supplies, exempt supplies and exports of goods and/or services of a person having the same PAN, to be computed on all India basis and excludes 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 supplies on which tax is levied on reverse charge basis and the value of inward supplies.
For determining the Threshold limit this is important. All India Turn over of both Goods and Services will be clubbed. For working out threshold limits for individual states how this will be applied is not clear
2(7)
(7) “agriculture" with all its grammatical variations and cognate expressions, includes floriculture, horticulture, sericulture, the raising
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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;
A very wide and inclusive definition.
Covers Profession and Vocation or any other similar activity. Te term similar activity may give scope for interpretation and disputes
2(21)
(21) “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;
IF done in individual capacity not in the course or furtherance of busine
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es, whether by the said person or by any other person: Provided that a deposit, whether refundable or not, given in respect of the supply of goods and/or services shall not be considered as payment made for the supply unless the supplier applies the deposit as consideration for the supply
Payment for inducement of supply of goods or services is also a consideration.
Any Deposit which is not applied as consideration by the supplier for supply will not be treated as consideration
It covers even advance payments made for supply of goods
2(30)
(30) “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 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;
The periodicity of such supplies and the period of contract is not specified
2(31)
(31) “continuous supply of services” means a supply of se
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10;
2(43)
(43) “export of goods” with its grammatical variations and cognate expressions, means taking out of India to a place outside India;
Why taking out and not supply from India to a place outside India
2(44)
(44) the supply of any service shall be treated as “export of service” when (a) the supplier of service is located in India, (b) the recipient of service is located outside India, (c) the place of supply of service is outside India, (d) the payment for such service has been received by the supplier of service in convertible foreign exchange, and (e) the supplier of service and recipient of service are not merely establishments of a distinct person; Explanation.- For the purposes of clause (e), an establishment of a person in India and any of his other establishment outside India shall be treated as establishments of distinct persons.
2(46)
(46) “fixed establishment” means a place (other than the place of business) which is characterised by a sufficient degree of perman
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e supplier of service and the recipient of service are not merely establishments of a distinct person;
Explanation 1.- An establishment of a person in India and any of his other establishment outside India shall be treated as establishments of distinct persons. Explanation 2.- A person carrying on a business through a branch or agency or representational office in any territory shall be treated as having an establishment in that territory
2(54)
(54) “input” means any goods other than capital goods, subject to exceptions as may be provided under this Act or the rules made thereunder, used or intended to be used by a supplier for making an outward supply in the course or furtherance of business;
* Used or Intended to be used
* Other than capital goods
* For making Outward Supply
* In the Course of Business or
* For furtherance of Business
2(55)
(55) “input service” means any service, subject to exceptions as may be provided under this Act or the rules made thereunder, us
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ained, the location of such place of business; (ii) where a supply is received at a place other than the place of business for which registration has been obtained, that is to say, a fixed establishment elsewhere, the location of such fixed establishment; (iii) 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 (iv) in absence of such places, the location of the usual place of residence of the recipient;
2(65)
(65) “location of supplier of service” means: (i) where a supply is made from a place of business for which registration has been obtained, the location of such place of business ; (ii) where a supply is made from a place other than the place of business for which registration has been obtained, that is to say, a fixed establishment elsewhere, the location of such fixed establishment; (iii) where a supply is made from more t
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RC. Difference between barter and Exchange is to be noted
2(75)
(75) “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;
Why the word taxable person is used here
2(80)
(80) “recipient” of supply of goods and/or services means- (a) where a consideration is payable for the supply of goods and/or services, 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
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may, on the recommendation of the Council, by notification, specify;
2(93)
(93) “tangible property” means any property that can be touched or felt;
Property has not been defined
Definition of property
There are different definitions are given in different act as per there uses and needs. But in the most important act which exclusively talks about the property and rights related to property transfer of property act 1882 has no definite definition of the term property. But it is defined in some other act as per their use and need. Those definitions are as follows:
Section 2(c) of the Benami Transactions (Prohibition) Act, 1988 defines property as:
“Property” means property of any kind, whether movable or immovable, tangible or intangible, and includes any right or interest in such property.
Section 2 (11) of the Sale of Good Act, 1930 defines property as:
“Property” means the general property in goods, and not merely a special property.
2(104)
(104) “turnover in a Stat
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nd/or services such as sale, transfer, barter, exchange, license, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business, (b) importation of service, whether or not for a consideration and whether or not in the course or furtherance of business, and (c) a supply specified in Schedule I, made or agreed to be made without a consideration. (2) Schedule II, in respect of matters mentioned therein, shall apply for determining what is, or is to be treated as a supply of goods or a supply of services. (2A) Where a person acting as an agent who, for an agreed commission or brokerage, either supplies or receives any goods and/or services on behalf of any principal, the transaction between such principal and agent shall be deemed to be a supply. (3) Subject to sub-section (2), the Central or a State Government may, upon recommendation of the Council, specify, by notification, the transactions that are to be treated as- (i) a s
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