Various Definitions of CGST Act

Goods 2(52) of CGST act

“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.

Services 2(102) of CGST act

“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.

Money 2(75) of CGST act

“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 shall not include any currency that is held for its numismatic value.

Securities 2(101) of SCRA act 1956

The definition of securities as per Section 2(101) of the CGST Act straightaway requires one to draw parallel from the definition of securities given under Section 2(h) of the Securities Contracts (Regulation) Act 1956. The definition of securities given under the said provision is as below:

“Securities” include:

(i) Shares, scrips, stocks, bonds, debentures, debenture stock or other marketable securities of a like nature in or of any incorporated company or other body corporate.

(ia) Derivative.

(ib) Units or any other instrument issued by any collective investment scheme to the investors in such schemes.

(ic) Security receipt as defined in clause (zg) of section 2 of the Securitisation and

Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (54 of 2002).

(id) Units or any other such instrument issued to the investors under any mutual fund scheme.

(ie) Any certificate or instrument (by whatever name called), issued to an investor by any issuer being a special purpose distinct entity which possesses any debt or receivable, including mortgage debt, assigned to such entity, and acknowledging beneficial interest of such investor in such debt or receivable including mortgage debt, as the case may be.

(ii) Government securities.

(iia) Such other instruments as may be declared by the Central Government to be securities.

(iii) Rights or interests in securities.

Any consideration earned from transaction in the abovementioned securities will be outside the levy of GST.

India 2(56) of CGST act

“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.

Persons 2(84) of CGST act

“Person” includes:

(a) an individual

(b) A Hindu Undivided Family

(c) A company

(d) A firm

(e) A Limited Liability Partnership

(f) An association of persons or a body of individuals, whether incorporated or not, in India or outside India.

(g) 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.

(h) Any body corporate incorporated by or under the laws of a country outside India.

(i) A co-operative society registered under any law relating to co-operative societies.

(j) A local authority

(k) Central Government or a State Government.

(l) Society as defined under the Societies Registration Act, 1860.

(m) Trust

(n) Every artificial juridical person, not falling within any of the above.

Taxable Persons 2(107) of CGST act

“Taxable person” means a person who is registered or liable to be registered under section 22 or section 24.

Business 2(17) of CGST act

“Business” includes:

(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 incidental 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.

Considerations 2(31) of CGST act

“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: Provided that a deposit given in respect of the supply of goods or services or both shall not be considered as payment made for such supply unless the supplier applies such deposit as consideration for the said supply.

E-commerce operator 2(45) of CGST act

“Electronic commerce operator” means any person who owns, operates or manages digital or electronic facility or platform for electronic commerce;

Supplier 2(105) of CGST 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.

Recipient 2(93) of CGST act

“Recipient” of supply of goods or services or both, means:

(a) Where a consideration is payable for the supply of goods or services or both, 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.

(c) 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.