Section 2 of UTGST Act, 2017: Definitions of Key Terms

Definitions of various important terms as per Section 2 of the Union Territory Goods and Services Tax (UTGST) Act, 2017, unless the context otherwise requires, are as under:

Section 2(1): Appointed Day

“Appointed Day” means the date on which the provisions of this Act shall come into force.

Section 2(2): Commissioner

“Commissioner” means the Commissioner of Union territory tax appointed under section 3.

Section 2(3): Designated Authority

“Designated Authority” means such authority as may be notified by the Commissioner.

Section 2(4): Exempt Supply

“Exempt Supply” means supply of any goods or services or both which attracts nil rate of tax or which may be exempt from tax under section 8, or under section 6 of the Integrated Goods and Services Tax Act, and includes non-taxable supply.

Section 2(5): Existing Law

“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.

Section 2(6): Government

“Government” means the Administrator or any Authority or officer authorised to act as Administrator by the Central Government.

Section 2(7): Output Tax

“Output Tax” in relation to a taxable person, means the Union territory 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.

Section 2(8): Union Territory

“Union Territory” means the territory of,-

(i) the Andaman and Nicobar Islands;

(ii) Lakshadweep;

(iii) Dadra and Nagar Haveli [Refer Note 1]

(iii) Dadra and Nagar Haveli and Daman and Diu;

(iv) Daman and Diu [Refer Note 1]

(iv) Ladakh;

(v) Chandigarh; or

(vi) other territory.

Explanation: For the purposes of this Act, each of the territories specified in sub-clauses (i) to (vi) shall be considered to be a separate Union territory.

Section 2(9): Union Territory Tax

“Union Territory Tax” means the tax levied under this Act.

Section 2(10)

Words and expressions used and not defined in this Act but defined in the Central Goods and Services Tax Act, the Integrated Goods and Services Tax Act, the State Goods and Services Tax Act, and the Goods and Services Tax (Compensation to States) Act, shall have the same meaning as assigned to them in those Acts.

Amendments History:

1. Clauses (iii) and (iv) in sub-section (8) substituted vide section 137 of the Finance Act 2020 (GOI Notification dated 27/03/2020).

Commentary on Section 2 of UTGST Act, 2017

Section 2 of the Union Territory Goods and Services Tax (UTGST) Act, 2017 defines various important terms related to the legislation. Here’s a commentary on the definitions provided in this section:

Section 2(1) of UTGST Act, 2017: Appointed Day

This term refers to the date when the UTGST Act comes into force.

Section 2(2) of UTGST Act, 2017: Commissioner

The Commissioner is the officer appointed under Section 3 to oversee the Union territory tax administration.

Section 2(3) of UTGST Act, 2017: Designated Authority

The Designated Authority is an individual or body appointed by the Commissioner, as notified.

Section 2(4) of UTGST Act, 2017: Exempt Supply

Exempt Supply refers to goods or services that have either a nil tax rate or are exempt from tax under specific sections of the UTGST Act or the Integrated Goods and Services Tax (IGST) Act. This also includes non-taxable supplies.

Section 2(5) of UTGST Act, 2017: Existing Law

Existing Law encompasses any legislation, notification, order, rule or regulation related to tax or duty on goods or services, which were passed or made before the commencement of the UTGST Act by the Parliament or any other competent authority.

Section 2(6) of UTGST Act, 2017: Government

The term “Government” refers to the Administrator or any Authority or officer authorized to act as Administrator by the Central Government.

Section 2(7) of UTGST Act, 2017: Output Tax

Output Tax pertains to the Union territory tax chargeable under the UTGST Act on taxable supply of goods or services or both, made by a taxable person or their agent, excluding tax payable on a reverse charge basis.

Section 2(8) of UTGST Act, 2017: Union Territory

Union Territory refers to the specific territories listed, with each territory considered as a separate Union territory for the purposes of the UTGST Act.

Section 2(9) of UTGST Act, 2017: Union Territory Tax

Union Territory Tax is the tax levied under the UTGST Act.

Section 2(10) of UTGST Act, 2017: Undefined Words and Expressions

Any words or expressions not explicitly defined in the UTGST Act but defined in other related Acts, such as the Central Goods and Services Tax Act, the Integrated Goods and Services Tax Act, the State Goods and Services Tax Act, and the Goods and Services Tax (Compensation to States) Act, will have the same meanings as assigned in those Acts.

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Note: The UTGST Act 2017 has been notified vide GOI Notification dated 12/04/2017, which has subsequently been amended  through UTGST (Amendment) Act 2018, Finance Act 2019, Finance Act 2020, Finance Act 2021, Finance Act, 2022 and Finance Act, 2023 including various Notifications issued by the Govt./ CBIC from time to time, relating to the commencement dates of various Sections/ Provisions in the respective UTGST/ Amendment Acts, wherever required. Information on this page is a Section-wise compilation of the Amendments made by various Notifications issued by CBIC from time to time, with best possible efforts for accuracy. In any case, E&OE. For official/ updated information, please visit CBIC website.