Chapter 1

(1) This Act is called the Central Goods and Services Tax Act, 2017.

(2) It applies to the whole of India, including the State of Jammu and Kashmir.

(3) The Act came into effect on 22 July 2017, but the Central Government may notify different commencement datesfor different provisions through the Official Gazette.
Whenever a specific provision mentions the commencement of this Act, it refers to the date on which that provision itself comes into force.

Section 2. Definitions (Simplified)

(1) “actionable claim” means a claim that can be legally enforced, as defined in the Transfer of Property Act, 1882.

(2) “address of delivery” is the recipient’s address where goods or services are delivered, as shown on the tax invoice.

(3) “address on record” is the recipient’s address available in the supplier’s records.

(4) “adjudicating authority” is any official authorised to make decisions under this Act, excluding certain specified authorities.

(5) “agent” is a person or entity carrying out business of supplying or receiving goods/services on behalf of someone else.

(6) “aggregate turnover” is the total value of all taxable, exempt, export, and inter-State supplies by a person, excluding certain taxes.

(7) “agriculturist” is an individual or HUF cultivating land using own, family, or hired labour under personal supervision.

(8) “Appellate Authority” is the authority appointed to hear appeals under section 107.

(9) “Appellate Tribunal” refers to the GST Appellate Tribunal under section 109.

(10) “appointed day” is the date when provisions of this Act come into effect.

(11) “assessment” is the process of determining tax liability, including self, re, provisional, summary, or best judgment assessments.

(12) “associated enterprises” has the meaning given in section 92A of the Income-tax Act, 1961.

(13) “audit” is the examination of records, returns, and documents to verify declared turnover, taxes paid, refund claims, and input tax credits.

(14) “authorised bank” is a bank permitted by the Government to collect taxes under this Act.

(15) “authorised representative” is the representative referred to in section 116.

(16) “Board” means the Central Board of Indirect Taxes and Customs.

(17) “business” includes trade, commerce, manufacture, profession, or any activity for pecuniary or non-pecuniary benefit, including incidental transactions, government and public authority activities, and club/association services.

(18) [Omitted]

(19) “capital goods” are goods capitalised in accounts and used for business.

(20) “casual taxable person” is someone making occasional taxable supplies in a state/UT without a fixed place of business.

(21) “central tax” is the tax levied under section 9.

(22) “cess” has the meaning in the GST (Compensation to States) Act.

(23) “chartered accountant” is defined under the Chartered Accountants Act, 1949.

(24) “Commissioner” is the Commissioner of central tax, including Principal Commissioner and Commissioner of integrated tax.

(25) “Commissioner in the Board” is the Commissioner referred in section 168.

(26) “common portal” is the GST electronic portal under section 146.

(27) “common working days” are consecutive days not declared gazetted holidays in a state or UT.

(28) “company secretary” is defined under the Company Secretaries Act, 1980.

(29) “competent authority” is any authority notified by the Government.

(30) “composite supply” is a supply consisting of two or more goods/services naturally bundled, with one principal supply.

(31) “consideration” is any payment or value provided for supply of goods/services, excluding government subsidies; deposits count only if applied as consideration.

(32) “continuous supply of goods” is supply delivered on a recurrent basis under contract, invoiced regularly.

(33) “continuous supply of services” is supply of services on a recurring basis over more than 3 months with periodic payments.

(34) “conveyance” includes vessel, aircraft, or vehicle.

(35) “cost accountant” is defined under the Cost and Works Accountants Act, 1959.

(36) “Council” is the GST Council established under article 279A.

(37) “credit note” is a document issued by a registered person under section 34.

(38) “debit note” is a document issued by a registered person under section 34.

(39) “deemed exports” are supplies notified under section 147.

(40) “designated authority” is any authority notified by the Board.

(41) “document” includes written, printed, or electronic records.

(42) “drawback” is rebate of duty, tax, or cess on exported goods for imported/domestic inputs.

(43) “electronic cash ledger” is the ledger referred to in section 49.

(44) “electronic commerce” is supply of goods/services via digital or electronic networks.

(45) “electronic commerce operator” owns or manages a digital platform for e-commerce.

(46) “electronic credit ledger” is the ledger referred to in section 49.

(47) “exempt supply” is supply attracting nil tax or wholly exempt under section 11 or IGST Act, including non-taxable supply.

(48) “existing law” means any pre-existing law or rule on duties/taxes on goods/services before this Act.

(49) “family” includes spouse, children, and dependent parents, grandparents, and siblings.

(50) “fixed establishment” is a permanent place, other than registered office, capable of supplying or receiving services.

(51) “Fund” refers to the Consumer Welfare Fund under section 57.

(52) “goods” means movable property other than money/securities, includes actionable claims, growing crops, grass, and things agreed to be severed.

(53) “Government” means the Central Government.

(54) “Goods and Services Tax (Compensation to States) Act” refers to the 2017 Act.

(55) “goods and services tax practitioner” is approved under section 48 to act as a practitioner.

(56) “India” includes its territory, waters, seabed, continental shelf, exclusive economic zone, and airspace.

(57) “Integrated Goods and Services Tax Act” refers to the 2017 Act.

(58) “integrated tax” is the IGST levied under the IGST Act.

(59) “input” is any goods, other than capital goods, used or intended for business.

(60) “input service” is any service used or intended for business.

(61) “Input Service Distributor” is an office distributing input tax credit among suppliers with same PAN.

(62) “input tax” is CGST, SGST, UTGST, IGST charged on supplies, including import tax, but excluding composition levy.

(63) “input tax credit” is credit of input tax.

(64) “intra-State supply of goods” has the meaning in section 8 of IGST Act.

(65) “intra-State supply of services” has the meaning in section 8 of IGST Act.

(66) “invoice” or “tax invoice” is the document referred to in section 31.

(67) “inward supply” is receipt of goods/services, by purchase or any means, with or without consideration.

(68) “job work” is processing goods of another registered person; “job worker” is the person performing it.

(69) “local authority” includes Panchayats, Municipalities, Cantonment Boards, Regional/District Councils, Development Boards, or authorities entrusted with municipal/local funds.

(70) “location of the recipient of services” is the place of business/fixed establishment/ usual residence where services are received.

(71) “location of the supplier of services” is the place of business/fixed establishment/ usual residence from where services are supplied.

(72) “manufacture” is processing materials into a new product with distinct name, character, and use; “manufacturer” is the one who does it.

(73) “market value” is the price a recipient would pay for similar goods/services at the same commercial level, if unrelated.

(74) “mixed supply” is two or more supplies sold together for a single price where no one is principal supply.

(75) “money” includes Indian/foreign currency, cheque, promissory note, draft, or other RBI recognized instruments, excluding numismatic currency.

(76) “motor vehicle” has the meaning in Motor Vehicles Act, 1988.

(77) “non-resident taxable person” makes occasional taxable supplies in India without fixed place of business or residence.

(78) “non-taxable supply” is supply not liable to tax under this Act or IGST Act.

(79) “non-taxable territory” is outside the taxable territory.

(80) “notification” is publication in Official Gazette; “notify/notified” are construed accordingly.

(81) “other territory” includes territories other than states and those listed in clause (114).

(82) “output tax” is tax on a taxable person’s supply, excluding reverse charge.

(83) “outward supply” is supply made or agreed to be made by a person in course of business.

(84) “person” includes individuals, HUF, companies, firms, LLPs, associations, corporations, co-ops, governments, societies, trusts, and artificial juridical persons.

(85) “place of business” includes where business is carried out, books are maintained, or business through an agent is conducted.

(86) “place of supply” has the meaning in Chapter V of IGST Act.

(87) “prescribed” means rules made under this Act on Council recommendations.

(88) “principal” is the person on whose behalf an agent carries out business.

(89) “principal place of business” is specified in registration certificate.

(90) “principal supply” is the main supply in a composite supply.

(91) “proper officer” is the Commissioner or officer assigned the function by Commissioner in the Board.

(92) “quarter” is three consecutive calendar months ending March, June, September, December.

(93) “recipient” is person liable to pay or receiving goods/services; includes agent acting on recipient’s behalf.

(94) “registered person” is a person registered under section 25, excluding those with a Unique Identity Number.

(95) “regulations” are rules made by the Board on Council recommendations.

(96) “removal” means dispatch or collection of goods for delivery.

(97) “return” is any form or statement required under this Act.

(98) “reverse charge” is tax payable by recipient instead of supplier under relevant provisions.

(99) “Revisional Authority” is appointed to revise decisions/orders under section 108.

(100) “Schedule” means a Schedule appended to this Act.

(101) “securities” has the meaning in Securities Contracts (Regulation) Act, 1956.

(102) “services” means anything other than goods, money, securities, including money conversion and related transactions.

(103) “State” includes Union territories with Legislature.

(104) “State tax” is the tax levied under any State GST Act.

(105) “supplier” is a person supplying goods/services, including agents.

(106) “tax period” is the period for which return is furnished.

(107) “taxable person” is registered or liable to register under section 22 or 24.

(108) “taxable supply” is supply liable to tax under this Act.

(109) “taxable territory” is where this Act applies.

(110) “telecommunication service” includes email, voice/data/video/text services, radio paging, mobile services via transmission/reception.

(111) “the State Goods and Services Tax Act” means the respective 2017 State GST Act.

(112) “turnover in State” or “turnover in Union territory” means the total value of all taxable and exempt supplies made within a State or Union territory, including exports and inter-State supplies from that region, but excluding central tax, State tax, Union territory tax, integrated tax, and cess;

(113) “usual place of residence” means:
(a) for an individual, the place they normally live;
(b) for others, the place where the entity is legally registered or incorporated;

(114) “Union territory” refers to:
(a) Andaman and Nicobar Islands;
(b) Lakshadweep;
(c) Dadra and Nagar Haveli and Daman and Diu;
(d) Ladakh;
(e) Chandigarh;
(f) any other specified territory.

Each of these is considered a separate Union territory.

(115) “Union territory tax” is the GST levied in a Union territory under the Union Territory Goods and Services Tax Act;

(116) “Union Territory Goods and Services Tax Act” means the Union Territory GST Act, 2017;

(117) “valid return” is a GST return filed under section 39(1) with full payment of self-assessed tax;

(118) “voucher” is a document that must be accepted as full or partial payment for goods or services, specifying the goods/services or supplier details, either on the document or in related records;

(119) “works contract” is a contract involving construction, fabrication, repair, maintenance, or similar work on immovable property where transfer of goods is part of the execution;

(120) Words not defined in this Act but defined in the Integrated GST Act, Union Territory GST Act, or GST (Compensation to States) Act carry the same meanings;

(121) [****]