Section 2(111) to 2(120) of the CGST Act, 2017: Definitions

Definitions of various important terms under Sections 2(111) to 2(120) of the CGST Act, 2017, unless the context otherwise requires:

Section 2(111): Meaning of The State Goods and Services Tax Act

The State Goods and Services Tax Act means the respective State Goods and Services Tax Act, 2017.

Section 2(112): Meaning of Turnover in State or Union Territory

Turnover in State or Turnover in Union Territory means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis) and exempt supplies made within a State or Union territory by a taxable person, exports of goods or services or both and inter-State supplies of goods or services or both made from the State or Union territory by the said taxable person but excludes central tax, State tax, Union territory tax, integrated tax and cess.

Section 2(113): Meaning of Usual Place of Residence

Usual Place of Residence means,-

(a) in case of an individual, the place where he ordinarily resides;

(b) in other cases, the place where the person is incorporated or otherwise legally constituted.

Section 2(114): Meaning of Union Territory

Union Territory means the territory of-

(a) the Andaman and Nicobar Islands;

(b) Lakshadweep;

(c) Dadra and Nagar Haveli; Dadra and Nagar Haveli and Daman and Diu; [Refer Note 1]

(d) Daman and Diu; Ladakh; [Refer Note 1]

(e) Chandigarh; and

(f) other territory.

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

Section 2(115): Meaning of Union Territory Tax

Union Territory Tax means the Union territory goods and services tax levied under the Union Territory Goods and Services Tax Act.

Section 2(116): Meaning of Union Territory Goods and Services Tax Act

Union Territory Goods and Services Tax Act means the Union Territory Goods and Services Tax Act, 2017.

Section 2(117): Meaning of Valid Return

Valid Return means a return furnished under sub-section (1) of section 39 on which self-assessed tax has been paid in full.

Section 2(117A): Meaning of Virtual Digital Asset

Virtual digital asset shall have the same meaning as assigned to it in clause (47A) of section 2 of the Income-tax Act, 1961. [Note 2]

Section 2(118): Meaning of Voucher

Voucher means an instrument where there is an obligation to accept it as consideration or part consideration for a supply of goods or services or both and where the goods or services or both to be supplied or the identities of their potential suppliers are either indicated on the instrument itself or in related documentation, including the terms and conditions of use of such instrument.

Section 2(119): Meaning of Works Contract

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 transfer of property in goods (whether as goods or in some other form) is involved in the execution of such contract.

Section 2(120): Meaning of Words and Expressions used and not defined in this Act

Words and Expressions used and not defined in this Act but defined in the Integrated Goods and Services Tax Act, the Union Territory 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. In Section 2(114), Clauses (c) and (d) substituted vide Section 118 of the Finance Act 2020 (GOI Notification dated 27/03/2020), followed with Notification 49/2020 on commencement date of 30/06/2020.

2. Clause (117A) inserted vide the CGST (Amendment) Act, 2023 (Notification dated 18/08/2023), pending notification on commencement date.

Commentary on Sections 2(111) to 2(120) of CGST Act, 2017

This commentary provides a simplified explanation of the definitions of various important terms under Sections 2(111) to 2(120) of the CGST Act, 2017:

Section 2(111): The State Goods and Services Tax Act

The State Goods and Services Tax Act refers to the specific State Goods and Services Tax Act, 2017, enacted by the respective state.

Section 2(112): Turnover in State or Union Territory

Turnover in State or Turnover in Union Territory refers to the total value of all taxable supplies, exempt supplies, exports and inter-State supplies made within a State or Union territory by a taxable person. This excludes taxes and cess.

Section 2(113): Usual Place of Residence

Usual Place of Residence defines the place where an individual ordinarily resides or, in other cases, the place where the person is legally incorporated or constituted.

Section 2(114): Union Territory

Union Territory refers to the territories of Andaman and Nicobar Islands, Lakshadweep, Dadra and Nagar Haveli and Daman and Diu, Ladakh, Chandigarh and other territories. Each territory is considered a separate Union territory for the purposes of the Act.

Section 2(115): Union Territory Tax

Union Territory Tax refers to the tax levied under the Union Territory Goods and Services Tax Act.

Section 2(116): The Union Territory Goods and Services Tax Act

The Union Territory Goods and Services Tax Act refers to the Union Territory Goods and Services Tax Act, 2017.

Section 2(117): Valid Return

Valid Return means a return filed under section 39(1) where the self-assessed tax has been fully paid.

Section 2(118): Voucher

Voucher refers to an instrument that must be accepted as (partial) consideration for a supply of goods or services. The goods, services or potential suppliers are indicated on the instrument or related documentation.

Section 2(119): Works Contract

Works Contract refers to a contract involving building, construction and other related activities on immovable property, where the transfer of property in goods is involved in the execution of the contract.

Section 2(120): Words and expressions not defined in the CGST Act

Words and expressions not defined in the CGST Act but defined in the Integrated Goods and Services Tax Act, the Union Territory Goods and Services Tax Act and the Goods and Services Tax (Compensation to States) Act have the same meaning as assigned to them in those Acts.

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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.