Section 2(101) to 2(110) of the CGST Act, 2017: Definitions

Definitions of various important terms under Sections 2(101) to 2(110) of the CGST Act, 2017, unless the context otherwise requires:

Section 2(101): Meaning of Securities

Securities shall have the same meaning as assigned to it in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956.

Section 2(102): Meaning of Services

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.

Explanation: For the removal of doubts, it is hereby clarified that the expression “services” includes facilitating or arranging transactions in securities. [Refer Note 1]

Section 2(103): Meaning of State

State includes a Union territory with Legislature.

Section 2(104): Meaning of State Tax

State Tax means the tax levied under any State Goods and Services Tax Act.

Section 2(105): Meaning of Supplier

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.

Section 2(106): Meaning of Tax Period

Tax Period means the period for which the return is required to be furnished.

Section 2(107): Meaning of Taxable Person

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

Section 2(108): Meaning of Taxable Supply

Taxable Supply means a supply of goods or services or both which is leviable to tax under this Act.

Section 2(109): Meaning of Taxable Territory

Taxable Territory means the territory to which the provisions of this Act apply.

Section 2(110): Meaning of Telecommunication Service

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.

Amendments History:

1. Explanation inserted in Section 2(102) of the CGST Act 2017, vide Section 2(f) of the CGST (Amendment) Act, 2018 (GOI Notification dated 29/08/2018), followed with Notification 2/2019 on commencement date of 01/02/2019.

Commentary on Sections 2(101) to 2(110) of CGST Act, 2017

This commentary provides an overview and explanation of the definitions provided in Sections 2(101) to 2(110) of the CGST Act, 2017:

Section 2(101): Securities

Securities are defined with reference to the Securities Contracts (Regulation) Act, 1956. They include shares, bonds, debentures, derivatives and other marketable securities traded in financial markets.

Section 2(102): Services

Services encompass any activity other than goods, money and securities. This includes activities related to using or converting money, either by cash or other modes, from one form, currency, or denomination to another, for which a separate charge is applied. The expression “services” also includes facilitating or arranging transactions in securities.

Section 2(103): State

State refers to the individual states within India, including Union territories with Legislature. These territories have their own legislative assemblies, allowing them to enact laws and regulations.

Section 2(104): State Tax

State Tax is the tax levied under any State Goods and Services Tax Act, which is an indirect tax applicable on the supply of goods and services within a specific state.

Section 2(105): Supplier

Supplier refers to the person supplying goods, services or both. It also includes agents acting on behalf of the supplier in relation to the supplied goods or services.

Section 2(106): Tax Period

Tax Period denotes the time frame for which a registered person is required to furnish a tax return, typically on a monthly or quarterly basis.

Section 2(107): Taxable Person

Taxable Person is an individual or entity that is registered or liable to be registered under section 22 or section 24 of the CGST Act. This includes businesses with a certain turnover or those engaging in specific activities.

Section 2(108): Taxable Supply

Taxable Supply refers to the supply of goods, services or both, which are subject to tax under the CGST Act. These supplies are generally made for a consideration and within the taxable territory.

Section 2(109): Taxable Territory

Taxable Territory refers to the geographical area where the provisions of the CGST Act apply, which encompasses the entire territory of India, barring specific exceptions.

Section 2(110): Telecommunication Service

Telecommunication Service includes a wide range of services, such as email, voicemail, data services, audio text services, video text services, radio paging, and cellular mobile telephone services. It covers any service made available to users through the transmission or reception of signs, signals, writing, images, sounds, or intelligence by wire, radio, visual, or other electromagnetic means.

—–

Note: The CGST Act 2017 has been notified vide GOI Notification dt. 12/04/2017, which has subsequently been amended through CGST (Extension to J&K) Act 2017, Finance Act 2018, CGST Amendment Act 2018, Finance Act 2019, Finance Act 2020, Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance 2020, Finance Act 2021, Finance Act 2022 including various Notifications issued by the Govt./ CBIC from time to time, relating to the commencement dates of various Sections/ Provisions in the respective CGST/ 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.