Important GST Definitions

The following are some of the important definitions under GST.

What is the meaning of agent under GST?

“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.

What is the meaning of aggregate turnover under GST?

‘Aggregate Turnover’ refers to the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax as 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, shall contain data at all India basis but excludes central tax, State tax, Union territory tax, integrated tax and cess. Check GST registration eligibility criteria.

What is the meaning of agriculturist under GST?

“Agriculturist” means an individual or a Hindu Undivided Family who undertakes cultivation of land— (a) by own labour, or (b) by the labour of family, or (c) 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. Treatment of agriculture under GST.

What is the meaning of business under GST?

“Business” includes:

Any trade, commerce, manufacture, profession, vocation, adventure, wager or any other similar activity, whether it is for a pecuniary benefit.
Any activity or transaction in connection with or incidental or ancillary to point 1;
Any activity or transaction in the nature of point 1, whether or not there is volume, frequency, continuity or regularity of such transaction.
Supply or acquisition of goods including capital goods and services in connection with commencement or closure of business.
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.
Admission, for a consideration, of persons to any premises.
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.
Services Provided by a race club by way of totalisator or a licence to bookmaker in such club.
Any activity or transaction undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities.

What is the meaning of capital goods under GST?

Capital goods refer to 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.

What is the meaning of casual taxable person under GST?

“Casual taxable person” means a person who occasionally undertakes transactions involving the 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. Know more about casual taxable person under GST.

What is the meaning of composite supply under GST?

“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.

What is the meaning of continuous supply of goods under GST?

“Continuous supply of goods” refers to a supply of goods Provided or agreed to Provide continuously or on a recurrent basis, under a contract, whether by means of a wire, cable, pipeline or other conduits and for which the supplier invoices the recipient on a regular or periodic basis and includes the supply of such goods as the Government may, subject to such conditions, as it may, by notification, specify.

What is the meaning of continuous supply of services under GST?

“Continuous supply of services” means a supply of services which is Provided, or agreed to be Provided, continuously or on a recurrent basis, under a contract, for a period exceeding three months with periodic payment obligations and includes the supply of such services as the Government may, subject to such conditions, as it may, by notification, specify.

What is the meaning of electronic commerce or ecommerce under GST?

“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.

What is the meaning of exempt supply under GST?

“Exempt supply” means the 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 the non-taxable supply.

What is the meaning of job work under GST?

“Job work” means any treatment or process undertaken by a person on goods belonging to another registered person and the expression “job worker”.

What is the location of the recipient of services?

“Location of the recipient of services” means:

Where the receiver receives the supply at the registered 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 the absence of such places, the location of the usual place of residence of the recipient.

What is location of supplier of services?

“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 the absence of such places, the location of the usual place of residence of the supplier;

What is a mixed supply under GST?

“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.

Who is a non-resident taxable person under GST?

“Non-resident taxable person” means any person who occasionally undertakes transactions involving the 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.

What is the principal supply under GST?

“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.

What is the meaning of recipient under GST?

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

Where 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.

What does the removal of goods mean under GST?

“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.

What is the meaning of services under GST?

“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 charges may apply for separate consideration.

Whos is a supplier under GST?

“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.

What does the usual place of residence mean?

“Usual place of residence” means:

In case of an individual, the place where he ordinarily resides;
In other cases, the place of incorporation otherwise legally constituted;

What is a voucher under GST?

“Voucher” refers to an instrument where the receiver shall accept it as consideration or part consideration for a supply of goods or services or both and the supplier supplies the goods or services or both or the identities of their potential suppliers shall either indicate on the instrument itself or in related documentation, including the terms and conditions of use of such instrument.

What is works contract under GST?

“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 the transfer of property in goods (whether as goods or in some other form) shall involve in the execution of such contract.