Tuesday, 10 January 2017

Some Important Definition under GST law





Some Important Definition under GST law








 “CGST” means the tax levied under the Central Goods and Services Tax Act, 2016;

 “IGST” means the tax levied under the Integrated Goods and Services Tax Act, 2016;

 “SGST” means the tax levied under the State Goods and Services Tax
Act, 2016;

 “Aggregate turnover” means the aggregate value of all taxable supplies, exempt supplies, exports of goods and/or services and inter-State supplies of a person having the same PAN, to be computed on all India basis and excludes taxes, if any, charged under the CGST Act, SGST Act and the IGST Act, as the case may be;

Explanation- Aggregate turnover does not include the value of inward supplies on which tax is payable by a person on reverse charge basis under sub-section (3) of Section 8 and the value of inward supplies.

 “Consideration” in relation to the supply of goods or services 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, 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;
  
 “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 one supplier of service, and which involves no stopover between any of the legs of the journey for which one or more separate tickets or invoices are issued;

Explanation- For the purposes of this clause, ‘stopover’ means a place where a passenger can disembark either to transfer to another conveyance or break his journey for a certain period in order to resume it at a later point of time.

 “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;

 “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 service as the Central or a State Government may, whether or not subject to any condition, by notification, specify;

 “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, 2016;

 “Invoice” shall have the meaning as assigned to it under section 28;

 “Manufacturer” shall have the meaning assigned to it by the Central Excise Act, 1944 (1 of 1944);

 “Non-resident taxable person” means a taxable person who occasionally undertakes 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;

 “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;

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 concessionaire, howsoever described, of the other, shall be deemed to be related.

 “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.

 “Tax” means goods and services tax levied on the supply of goods and/or services under this Act and includes any amount payable under section 9 or subsection (10) of section 18;

 “Taxable Person’’ shall have the meaning as assigned to it in section 10;

 “Tax Period’’ means the period for which the return is required to be filed;

 “Taxable Person’’ shall have the meaning as assigned to it in section 10;

 “Taxable Supply’’ means a supply of goods and/or services which is chargeable to tax under this Act;

 “Non-Taxable Supply’’ means a supply of goods or services which is not chargeable 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 electro-magnetic means;


Section 10

Taxable Person

(1) Taxable Person means a person who is registered or liable to be registered under Schedule V of this Act.

(2) A person who has obtained or is required to obtain more than one registration, whether in one State or more than one State, shall, in respect of each such registration, be treated as distinct persons for the purposes of this Act.

(3) An establishment of a person who has obtained or is required to obtain registration in a State, and any of his other establishments in another State shall be treated as establishments of distinct persons for the purposes of this Act.


By: - Young Minds Consultancy



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