Before I start elaborating on the various aspects of GST Law, I will list out the various terms which will be seen throughout the blog.
The purpose is to provide a reference point to check the exact meaning of a term when we study the various law provisions. While study the various sections of the act, we can refer this post to understand the exact meanings of the terms spoken there.
The terms are listed in Alphabetical
order for easy reference.
You can also search for any term by using the 'SEARCH' option in the top left corner of this page.
ACTIONABLE
CLAIM : shall have the same meaning as assigned to
it in section 3 of the Transfer of Property Act, 1882
ADDRESS
OF DELIVERY : means the address of the recipient of
goods or services or both indicated on the tax invoice issued by a registered
person for delivery of such goods or services or both
ADDRESS
ON RECORD : means the address of the recipient as
available in the records of the supplier
ADJUDICATING
AUTHORITY : means any authority, appointed or
authorised to pass any order or decision under this Act, but does not include
the Central Board of Excise and Customs, the Revisional Authority, the
Authority for Advance Ruling, the Appellate Authority for Advance Ruling, the
Appellate Authority and the Appellate Tribunal;
AGENT : means a person, including
a factor, broker, commission agent, arhatia, del credere agent, an auctioneer
or any other mercantile agent, by whatever name called, who carries on the
business of supply or receipt of goods or services or both on behalf of
another;
AGGREGATE
TURNOVER : means the aggregate value of all taxable
supplies (excluding the value of inward supplies on which tax is payable by a
person on reverse charge basis), exempt supplies, exports of goods or services
or both and inter-State supplies of persons having the same Permanent Account
Number, to be computed on all India basis but excludes central tax, State tax,
Union territory tax, integrated tax and cess;
AGRICULTURIST : means an individual or a
Hindu Undivided Family who undertakes cultivation of land-
·
by own labour
·
by the labour of family
·
by servants on wages payable in
cash or kind or by hired labour under personal supervision or the personal
supervision of any member of the family
APPELLATE
AUTHORITY : means an authority appointed or authorised to
hear appeals as referred to in section 107
APPELLATE
TRIBUNAL : means the Goods and Services Tax Appellate
Tribunal constituted under section 109
APPOINTED
DAY : means the date on which the provisions of
this Act shall come into force
ASSESSMENT : means determination of tax
liability under this Act and includes self-assessment, re-assessment,
provisional assessment, summary assessment and best judgment assessment
ASSOCIATED
ENTERPRISES :
shall have the same meaning as assigned to it in section 92A of the
Income-tax Act, 1961;
AUDIT : means the examination of
records, returns and other documents maintained or furnished by the registered
person under this Act or the rules made thereunder or under any other law for
the time being in force to verify the correctness of turnover declared, taxes
paid, refund claimed and input tax credit availed, and to assess his compliance
with the provisions of this Act or the rules made thereunder;
AUTHORISED BANK : shall mean a bank or a
branch of a bank authorised by the Government to collect the tax or any other amount payable
under this Act;
AUTHORISED REPRESENTATIVE : means the representative as referred to in section
116;
BOARD : means the
Central Board of Excise and Customs constituted under the Central Boards of
Revenue Act, 1963;
BUSINESS : Business is defined as any one of the following
categories-
a.
any trade, commerce, manufacture, profession, vocation,
adventure, wager or any other similar activity, whether or not it is for a
pecuniary benefit
b.
any activity or transaction in connection with or ancillary to
sub-clause (a)
c.
any activity or transaction in the nature of sub-clause (a),
whether or not there is volume, frequency, continuity or regularity of such
transaction
d.
supply or acquisition of goods including capital goods 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
f.
admission, for a consideration, of persons to any premises
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
i.
any activity or transaction undertaken by the Central
Government, a State Government or any local authority in which they are engaged
as public authorities
BUSINESS VERTICAL : means a distinguishable component of an enterprise that
is engaged in the supply of individual goods or services or a group of related goods
or services which is subject to risks and returns that are different from those
of the other business verticals.
For the purposes of this clause, factors that should be
considered in determining whether goods or services are related include––
·
The nature of the goods or services
·
The nature of the production processes
·
The type or class of customers for the goods or services
·
The methods used to distribute the goods or supply of
services
·
The nature of regulatory environment (wherever applicable),
including Banking, insurance, or public utilities
CAPITAL
GOODS : means goods, the value of which is
capitalised in the books of account of the person claiming the input tax credit
and which are used or intended to be used in the course or furtherance of
business
CASUAL
TAXABLE PERSON : means a person who
occasionally undertakes transactions involving supply of goods or services or
both in the course or furtherance of business, whether as principal, agent or
in any other capacity, in a State or a Union territory where he has no fixed
place of business
CENTRAL
TAX : means the central goods and services tax
levied under section 9;
CESS
: shall have the same meaning as assigned to it
in the Goods and Services Tax (Compensation to States) Act
CHARTERED
ACCOUNTANT : means a chartered accountant as defined in clause
(b) of
sub-section (1) of section 2
of the Chartered Accountants Act, 1949
COMMISSIONER
: means the Commissioner of central tax and
includes the Principal Commissioner of central tax appointed under section 3
and the Commissioner of integrated tax appointed under the Integrated Goods and
Services Tax Act;
COMMISSIONER
IN THE BOARD : means the Commissioner referred to in section
168;
COMMON
PORTAL : means the common goods and services tax
electronic portal referred to in section 146;
COMMON
WORKING DAYS : in respect of a State or
Union territory shall mean such days in succession which are not declared as
gazetted holidays by the Central Government or the concerned State or Union
territory Government;
COMPANY
SECRETARY : means a company secretary as defined in
clause (c) of
sub-section (1) of section 2
of the Company Secretaries Act, 1980;
COMPETENT
AUTHORITY : means
such authority as may be notified by the Government;
COMPOSITE
SUPPLY : means a supply made by a taxable person to a recipient
consisting of two or more taxable
supplies of goods or services or both, or any combination thereof, which are
naturally bundled and supplied in conjunction with each other in the ordinary
course of business, one of which is a principal supply;
CONSIDERATION
: in relation to the supply of goods or
services or both includes––
(a) any payment made or to be made, whether in money or otherwise, in respect
of, in response to, or for the inducement of, the supply of goods or services
or both, 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, in respect of, in response
to, or for the inducement of, the supply of goods or services or both, whether
by the recipient or by any other person but shall not include any subsidy given
by the Central Government or a State Government
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 or 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 and includes supply of such goods.
CONTINUOUS
SUPPLY OF SERVICES : means a supply of services
which is provided, or agreed to be provided, continuously or on recurrent basis,
under a contract, for a period exceeding three months with periodic payment
obligations and includes supply of such services as the Government may specify
CONVEYANCE
: includes a vessel, an aircraft and a vehicle;
COST
ACCOUNTANT : means a cost accountant as defined in clause
(c) of sub-section
(1) of section 2
of the Cost and Works Accountants Act, 1959; (36) “Council : means
the Goods and Services Tax Council established under article 279A of the
Constitution;
CREDIT
NOTE : means a document issued by a registered
person under sub-section (1) of section
34;
DEBIT
NOTE : means
a document issued by a registered person under sub-section (3) of section 34;
DEEMED
EXPORTS : means such supplies of goods as may be
notified under section 147
DESIGNATED
AUTHORITY : means such authority as may be notified by
the Board;
DOCUMENT
: includes written or printed record of any
sort and electronic record as defined in clause (t) of section 2 of the Information Technology Act, 2000;
DRAWBACK
: in relation to any goods manufactured in
India and exported, means the rebate of duty, tax or cess chargeable on any
imported inputs or on any domestic inputs or input services used in the
manufacture of such goods;
ELECTRONIC
CASH LEDGER : means the electronic cash ledger referred to
in subsection (1) of section
49;
ELECTRONIC
COMMERCE : means
the supply of goods or services or both, including digital products over
digital or electronic network;
ELECTRONIC
COMMERCE OPERATOR : means any person who owns,
operates or manages digital or electronic facility or platform for electronic
commerce;
ELECTRONIC
CREDIT LEDGER : means the electronic credit
ledger referred to in sub-section (2) of section 49;
EXEMPT
SUPPLY : means
supply of any goods or services or both which attracts nil
rate of tax or which may be wholly exempt from tax
under section 11, or under section 6 of the Integrated Goods and Services Tax
Act, and includes non-taxable supply;
EXISTING
LAW : means
any law, notification, order, rule or regulation relating to levy and
collection of duty or tax on goods or services or both passed or made before
the commencement of this Act by Parliament or any Authority or person having the
power to make such law, notification, order, rule or regulation;
FAMILY
: means,––
·
The spouse and children of the
person, and
·
The parents, grand-parents,
brothers and sisters of the person if they are wholly or mainly dependent on
the said person;
FIXED
ESTABLISHMENT : means a place (other than the registered 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 needs;
FUND
: means the Consumer Welfare Fund established
under section 57;
GOODS
: means
every kind of movable property other than money and securities but includes
actionable claim, growing crops, grass and things attached to or forming part
of the land which are agreed to be severed before supply or under a contract of
supply;
GOVERNMENT
: means
the Central Government;
GOODS
AND SERVICES TAX (COMPENSATION TO STATES) ACT : means
the Goods and Services Tax (Compensation to States) Act, 2017;
GOODS
AND SERVICES TAX PRACTITIONER : means any person who has been approved under
section 48 to act as such practitioner;
INDIA
: means the territory of India as referred to
in article 1 of the Constitution, its territorial waters, seabed and sub-soil
underlying such waters, continental shelf, exclusive economic zone or any other
maritime zone as referred to in the Territorial Waters, Continental Shelf,
Exclusive Economic Zone and other Maritime Zones Act, 1976, and the air space
above its territory and territorial waters;
INTEGRATED
GOODS AND SERVICES TAX ACT : means the Integrated Goods and Services Tax
Act, 2017;
INTEGRATED
TAX : means the integrated goods and services tax
levied under the Integrated Goods and Services Tax Act;
INPUT
: means any goods other than capital goods used
or intended to be used by a supplier in the course or furtherance of business;
INPUT
SERVICE : means
any service used or intended to be used by a supplier in the course or
furtherance of business;
INPUT
SERVICE DISTRIBUTOR : means an office of the
supplier of goods or services or both which receives tax invoices issued under
section 31 towards the receipt of input services and issues a prescribed
document for the purposes of distributing the credit of central tax, State tax,
integrated tax or Union territory tax paid on the said services to a supplier
of taxable goods or services or both having the same Permanent Account Number
as that of the said office;
INPUT
TAX : in relation to a registered person, means the
central tax, State tax, integrated tax or Union territory tax charged on any
supply of goods or services or both made to him and includes—
·
The integrated goods and
services tax charged on import of goods; The tax payable under the provisions
of sub-sections (3) and (4) of Section 9;
·
The tax payable under the
provisions of sub-sections (3) and (4) of Section 5 of the integrated goods and services tax act;
·
The tax payable under the
provisions of sub-sections (3) and (4) of Section 9 of the respective state goods and services tax act;
·
The tax payable under the
provisions of sub-sections (3) and (4) of Section 7 of the union territory goods and services tax act, But
does not include the tax paid under the composition levy;
INPUT
TAX CREDIT : means
the credit of input tax;
INTRA-STATE
SUPPLY OF GOODS : shall have the same meaning as assigned to it
in section 8 of the Integrated Goods and Services Tax Act;
INTRA-STATE
SUPPLY OF SERVICES : shall have the same meaning as assigned to it
in section 8 of the Integrated Goods and Services Tax Act;
INVOICE”
OR “TAX INVOICE : means the tax invoice referred to in section
31;
INWARD
SUPPLY : in
relation to a person, shall mean receipt of goods or services or both whether
by purchase, acquisition or any other means with or without consideration;
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;
LOCAL
AUTHORITY : means––
·
A “Panchayat” as defined in
clause (d) of article
243 of the Constitution;
·
A “Municipality” as defined in
clause (e) of article 243P of the Constitution;
·
A Municipal Committee, a Zilla
Parishad, a District Board, and any other Authority legally entitled to, or
entrusted by the Central Government or any State Government with the control or
management of a municipal or local fund;
·
A Cantonment Board as defined
in section 3 of the Cantonments Act, 2006;
·
A Regional Council or a
District Council constituted under the Sixth Schedule to the Constitution;
·
A Development Board constituted
under article 371 of the Constitution;
·
A Regional Council constituted
under article 371A of the Constitution;
LOCATION
OF THE RECIPIENT OF SERVICES : means,—
·
Where a supply is received at a
place of business for which the 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
(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;
LOCATION
OF THE SUPPLIER OF SERVICES : means,—
·
Where a supply is made from a
place of business for which the 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
(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 provisions of the supply; and
·
In absence of such places, the
location of the usual place of residence of the supplier;
MANUFACTURE
: means
processing of raw material or inputs in any manner that results in emergence of
a new product having a distinct name, character and use and the term
“manufacturer” shall be construed accordingly;
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;
MIXED
SUPPLY : means
two or more individual supplies of goods or services, or any combination
thereof, made in conjunction with each other by a taxable person for a single
price where such supply does not constitute a composite supply.
Illustration.— A supply of a package
consisting of canned foods, sweets, chocolates, cakes, dry fruits, aerated
drinks and fruit juices when supplied for a single price is a mixed supply.
Each of these items can be supplied separately and is not dependent on any
other. It shall not be a mixed supply if these items are supplied separately;
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 not include any currency that is held for its
numismatic value;
MOTOR
VEHICLE : shall
have the same meaning as assigned to it in clause (28) of section 2 of the Motor Vehicles Act, 1988;
NON-RESIDENT
TAXABLE PERSON : means any person who occasionally undertakes
transactions involving supply of goods or services or both, whether as principal
or agent or in any other capacity, but who has no fixed place of business or residence
in India;
NON-TAXABLE
SUPPLY : means
a supply of goods or services or both which is not leviable to tax under this
Act or under the Integrated Goods and Services Tax Act;
NON-TAXABLE
TERRITORY : means
the territory which is outside the taxable territory;
NOTIFICATION
: means a notification published in the
Official Gazette and the expressions “notify” and “notified” shall be construed
accordingly;
OTHER
TERRITORY : includes territories other than those
comprising in a State and those referred to in sub-clauses (a) to (e) of clause (114) ;
OUTPUT
TAX : in
relation to a taxable person, means the tax chargeable under this Act on
taxable supply of goods or services or both made by him or by his agent but
excludes tax payable by him on reverse charge basis;
OUTWARD
SUPPLY : in
relation to a taxable person, means supply of goods or services or both,
whether by sale, transfer, barter, exchange, licence, rental, lease or disposal
or any other mode, made or agreed to be made by such person in the course or furtherance
of business;
·
An individual;
·
A hindu undivided family;
·
A company;
·
A firm;
·
A limited liability
partnership;
·
An association of persons or a
body of individuals, whether incorporated Or not, in india or outside india;
·
Any corporation established by
or under any central act, state act or Provincial act or a government company
as defined in clause (45) of section 2
of The companies act, 2013;
·
Any body corporate incorporated
by or under the laws of a country Outside india;
·
A co-operative society
registered under any law relating to co-operative
·
A local authority;
·
Central government or a state
government;
·
Society as defined under the
societies registration act, 1860;
·
Trust
·
Every artificial juridical
person, not falling within any of the above;
PLACE
OF BUSINESS : Place
of business is defined as any of the following-
·
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, supplies or receives goods or services
or both; 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;
PLACE
OF SUPPLY : means
the place of supply as referred to in Chapter V of the Integrated Goods and
Services Tax Act;
PRESCRIBED
: means
prescribed by rules made under this Act on the recommendations of the Council;
PRINCIPAL
: means
a person on whose behalf an agent carries on the business of supply or receipt
of goods or services or both;
PRINCIPAL
PLACE OF BUSINESS : means the place of business specified as the principal
place of business in the certificate of registration;
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;
PROPER
OFFICER : in
relation to any function to be performed under this Act, means the Commissioner
or the officer of the central tax who is assigned that function by the
Commissioner in the Board;
QUARTER
: shall
mean a period comprising three consecutive calendar months, ending on the last
day of March, June, September and December of a calendar year;
RECIPIENT
: of
supply of goods or services or both, means—
·
Where a consideration is
payable for the supply of goods or services or both, the person who is liable
to pay that consideration;
·
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
·
Where no consideration is
payable for the supply of a service, the person to whom the service is
rendered, and any reference to a person to whom a supply is made shall be
construed as a reference to the recipient of the supply and shall include an
agent acting as such on behalf of the recipient in relation to the goods or
services or both supplied;
REGISTERED
PERSON : means
a person who is registered under section 25 but does not include a person
having a Unique Identity Number;
REGULATIONS
: means
the regulations made by the Board under this Act on the recommendations of the
Council;
REMOVAL’’ in relation to goods, means—
·
Despatch of the goods for delivery
by the supplier thereof or by any Other person acting on behalf of such
supplier; or
·
Collection of the goods by the
recipient thereof or by any other person Acting on behalf of such recipient;
RETURN
: means
any return prescribed or otherwise required to be furnished by or under this
Act or the rules made thereunder;
REVERSE
CHARGE : means
the liability to pay tax by the recipient of supply of
goods or services or both instead of the
supplier of such goods or services or both
under sub-section (3) or sub-section (4) of section 9, or under sub-section (3) or subsection
(4) of section 5 of the Integrated Goods and Services Tax Act;
REVISIONAL
AUTHORITY : means
an authority appointed or authorised for revision of decision or orders as
referred to in section 108;
SCHEDULE
: means
a Schedule appended to this Act;
SECURITIES
: shall
have the same meaning as assigned to it in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956;
SERVICES
: means
anything other than goods, money and securities but includes activities
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;
STATE
: includes
a Union territory with Legislature;
STATE
TAX : means the tax levied under any State Goods
and Services Tax Act;
SUPPLIER
: in relation to any goods or services or both,
shall mean the person supplying the said goods or services or both and shall
include an agent acting as such on behalf of such supplier in relation to the
goods or services or both supplied;
TAX
PERIOD : means
the period for which the return is required to be furnished;
TAXABLE
PERSON : means
a person who is registered or liable to be registered under section 22 or
section 24;
TAXABLE
SUPPLY : means
a supply of goods or services or both which is leviable to tax under this Act;
TAXABLE
TERRITORY : means
the territory to which the provisions of this Act apply;
TELECOMMUNICATION
SERVICE : means
service of any description (including electronic mail, voice mail, data
services, audio text services, video text services, radio paging and cellular
mobile telephone services) which 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 electromagnetic
means;
THE
STATE GOODS AND SERVICES TAX ACT : means the respective State Goods and Services
Tax Act, 2017;
TURNOVER
IN STATE OR TURNOVER IN UNION TERRITORY : means the aggregate value of all taxable
supplies (excluding the value of inward supplies on which tax is payable by a
person on reverse charge basis) and exempt supplies made within a State or
Union territory by a taxable person, exports of goods or services or both and
inter-State supplies of goods or services or both made from the State or Union territory
by the said taxable person but excludes central tax, State tax, Union territory
tax, integrated tax and cess;
USUAL
PLACE OF RESIDENCE : means––
·
In case of an individual, the
place where he ordinarily resides;
·
In other cases, the place where
the person is incorporated or otherwise legally constituted
UNION
TERRITORY : means
the territory of—
·
The Andaman and Nicobar
Islands;
·
Lakshadweep;
·
Dadra and Nagar Haveli;
·
Daman and Diu;
·
Chandigarh
UNION
TERRITORY TAX : means the Union territory goods and services
tax levied under the Union Territory Goods and Services Tax Act;
UNION
TERRITORY GOODS AND SERVICES TAX ACT : means the Union Territory Goods and Services
Tax Act, 2017;
VALID
RETURN : means
a return furnished under sub-section (1) of section 39 on which self-assessed tax has been paid in full;
VOUCHER
: means
an instrument where there is an obligation to accept it as consideration or
part consideration for a supply of goods or services or both and where the
goods or services or both to be supplied or the identities of their potential suppliers
are either indicated on the instrument itself or in related documentation, including
the terms and conditions of use of such instrument;
WORKS
CONTRACT : means
a contract for building, construction, fabrication, completion, erection, installation,
fitting out, improvement, modification, repair, maintenance, renovation,
alteration or commissioning of any immovable property wherein transfer of
property in goods (whether as goods or in some other form) is involved in the
execution of such contract;
ZERO-RATED SUPPLY : means supply of
any goods and/or services in terms of section 15 of the IGST Act 2016
Words and expressions not defined in this Act shall have the
meaning assigned to them in the Integrated Goods and Services
Tax Act, 2016.
These are some of the salient terms which you shall come across in the GST Lasw. If you find any other term you need the exact meaning of, or if you have a doubt in any of the terms given above, please mention in the comment box below and I will answer them for you.
Thanks again for your support. Have a Good Day!
