Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 14-9-2016 Last Replied Date:- 15-9-2016 – GST TERMINOLOGY – PART I Model GST Law, as placed in public domain on 15th June, 2016 by the Empowered Committee of State Finance Ministers (EC) contains the draft of model GST law which provides a basis for CGST / SGST / IGST legislations to the enacted in near future. Like in any other statute or tax law, model law on GST also contains exhaustive terminology or interpretations for understanding and interpretation of the law. Section 2 of Goods and Services Tax Act contains definitions of various terms, expressions and phrases which ought to be understood for the purpose of interpretation of tax law. It contains meanings of 109 such terms in 109 clauses in Section 2. An attempt is being made in a series of articles to dissect or interpret the GST terminology so as to enable desired understanding of tax provisions. To begin with, let's discuss the following terms in relation
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ould have issued such tax invoice for delivery of goods or services in question. Literally, address means the particulars of the place where someone lives or an organization is situated. What is an 'invoice' is defined in section 2(60) read with section 23 to mean a document showing the description, quantity and value of goods or services, tax charged thereon and other prescribed particulars. 'Taxable person' is defined in section 2(96) read with section 9 to mean a person who carries on any business in India or any State and who is registered or required to be registered under Schedule III. Further, an agriculturist has not been considered as a taxable person. 'Person' is defined in section 2(74) of the GST law. Address on Record [Section 2(3)] 'Address on record' means the address of the recipient as available in the records of the supplier. Address on Record was not defined earlier in the Finance Act, 1994. This definition is a newly inserted definiti
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#39;place of business' which has been separately defined in clause 75 of section 2. Fixed establishment is – Place other than place of business It is characterized by a sufficient degree of – Permanence, and Suitable structure It should be meant to supply services or to receive and use services for its own needs. Such permanence should be have sufficient degree of permanence. What is sufficient is subjective and would depend upon facts and circumstances of each case. Examples of permanence may be property as lease or rent or own property. Suitable structure has been referred to in the form of human and technical resources. Fixed establishment has been referred to only for the purpose of supply of or receiving of services, not for goods. Temporary presence of staff by way of a short visit at a place cannot be called a fixed establishment. Also, the number of staff at a location is not important. What is relevant is the adequacy of the arrangement (of human and technical resources),
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ch registration has been obtained, the location of such place of business; 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; 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 in absence of such places, the location of the usual place of residence of the recipient; According to Rule 2(i) of Place of Provision Rules, 2012, 'location of the service receiver' means: where the recipient of service has obtained a single registration, whether centralized or otherwise, the premises for which such registration has been obtained; where the recipient of service is not covered under sub-clause (a): the location of his business establishment; or where services are used at a place other
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usiness. Location of supplier of service [Section 2(65)] 'Location of supplier of service' means: where a supply is made from a place of business for which registration has been obtained, the location of such place of business ; 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; 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 provision of the supply; and in absence of such places, the location of the usual place of residence of the supplier; According to present Rule 2(h) of Place of Provision of Rules, 2012 'location of the service provider' means- where the service provider has obtained a single registration, whether centralized or otherwise, the premises for which such registration has been
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'Place of business' includes- 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 a place where a taxable person maintains his books of account; or a place where a taxable person is engaged in business through an agent, by whatever name called; The place of business would accordingly include the following places – place from where business is ordinarily carried on, warehouse, godown, any other place used for storing goods or place to provide or receive goods or services by taxable person, place where books of accounts are maintained by taxable person (it may be place of business of agency or any professional), place from where a taxable person is engaged in business through agent by whatever name called.(like commission agent, C&F agent, consignment agent etc) The definition given is an inclusive definition and not a comprehens
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goods Input tax credit availed Output tax payable and paid Such other particulars as prescribed Section 42 also provides that where more than one place of business is specified in the certificate of registration, the accounts relating to each place of business shall be kept at such places of business concerned. Usual place of residence [Section 2(105)] 'Usual place of residence' means: in case of an individual, the place where he ordinarily resides. in other cases, the place where the person, as defined in sub-section (74), is incorporated or otherwise legally constituted. Usual place of residence has been specified for both, individuals as well as non-individuals as follows – Taxable person What is usual place of residence Individuals Place where an individual ordinarily resides Other cases (Any person other than individual) Place where much person is incorporated or otherwise legally constituted Section 2(74) defines who is a 'person' which includes company, firm, HU
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