Section 2 – Draft-Bills-Reports – PRELIMINARY – MODEL GST LAW – Draft The Central / State Goods and Services Tax Act, 2016 – [November 2016] – Section 2 – 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, commission agent, arhati
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g, 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 meaning assigned to it in section 92A of the Inco
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cidental 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 Government or any local authority in which they are engaged as public authorities shall be de
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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 common GST electronic portal approved by the Central Government and State Governments, on the recommendation of the Council, for
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r 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 more than one ticket or invoice is issued at the same time, either by a single supplier of service or through an agent acting on behalf of more than on
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ay, 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 either in Indian Rupees or in convertible foreign exchange; (38) document includes written or printed record of any sort and electronic record as defined in the Information Technology Act
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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 means a place, other than the 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 nee
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e 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 tax paid under section 9; (56) input tax credit means credit of input tax as defined in sub-section (55); (57) intra-State supply of goods means the supply of goods in the course of intra-State trade or commerce in terms of sub-section (1) of section 4 of IGST Act, 2
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unicipal 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 same commercial level where the recipient and the supplier are not related; (65) money means 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 recognized by the Reserv
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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 relation to a person, shall mean supply of goods or services, whether by sale, transfer, barter, exchange, licence, rental, lease or disposal or any other means made or agreed to be made by such person in the course or furtherance of business; (73) person includes- (a) an individual; (b) a Hindu undivided family; (c) a company; (d) a firm; (e) a Limited Liability
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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 of a composite supply and to which any other supply forming part of that composite supply is ancillary and does not constitute, for the recipient an aim in itself, but a means for better enjoyment of the principal supply; (79) proper officer in relation to any function to be performed under this Act, means the officer of goods and services tax who is assigned that function by the Commissioner of CGST / SGST; (80) qua
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e 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 both of them; (e) one of them directly or indirectly controls the other; (f) both of them are directly or indirectly controlled by a third person; (g) together they directly or indirectly control a third person; or (h) they are members of the same family; Explanation I. – The term "person" also includes legal persons. Explanation II. – Persons who are associated in the business of one another in that one is the sole agent or sole distributor or sole conc
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curities 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 mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged. (93) SGST means the tax levied under the State Goods and Services Tax Act, 2016; (94) supplier in relation to any goods and/or services shall mean the person supplying the said goods and/or services and shall include an agent acting as such on behalf of such supplier in relation to the goods and/or services supplied; (95) supply shall have the meaning as assigned to it in section 3
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ch 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 to carry on any agricultural operation on one s own account- (a) by one s own labour, or (b) by the labour of one s family, or (c) by servants on wages payable in cash or kind [(but not in crop share)] or by hired labour under one s personal supervision or the personal supervision of any member of one s family; Explanation 1. – A widow or a minor or a person who is subject to any physical or mental disability or is a serving member of the armed forces of the Union, shall be deemed to cultivate land personally if it is cultivated by her or his servants or by hired labour. Expla
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