Sections 2(31) to 2(40) of the CGST Act, 2017: Definitions

Definitions of various important terms under Sections 2(31) to 2(40) of the CGST Act, 2017, unless the context otherwise requires:

Section 2(31): Meaning of Consideration

Consideration in relation to the supply of goods or services or both 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 or both, 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, in respect of, in response to, or for the inducement of, the supply of goods or services or both, 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 given in respect of the supply of goods or services or both shall not be considered as payment made for such supply unless the supplier applies such deposit as consideration for the said supply.

Section 2(32): Meaning of Continuous Supply of Goods

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 and includes supply of such goods as the Government may, subject to such conditions, as it may, by notification, specify.

Section 2(33): Meaning of Continuous Supply of Services

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 services as the Government may, subject to such conditions, as it may, by notification, specify.

Section 2(34): Meaning of Conveyance

Conveyance includes a vessel, an aircraft and a vehicle.

Section 2(35): Meaning of Cost Accountant

Cost Accountant means a cost accountant as defined in clause (c) clause (b) of sub-section (1) of section 2 of the Cost and Works Accountants Act, 1959. [Refer Note 1]

Section 2(36): Meaning of Council

Council means the Goods and Services Tax Council established under article 279A of the Constitution.

Section 2(37): Meaning of Credit Note

Credit Note means a document issued by a registered person under sub-section (1) of section 34.

Section 2(38): Meaning of Debit Note

Debit note means a document issued by a registered person under sub-section (3) of section 34.

Section 2(39): Meaning of Deemed Exports

Deemed Exports means such supplies of goods as may be notified under section 147.

Section 2(40): Meaning of Designated Authority

Designated Authority means such authority as may be notified by the Board.

Amendments History:

1. In Section 2(35), the text ‘clause (b)’ substituted for the text ‘clause (c)’, vide Section 2(d) 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(31) to 2(40) of CGST Act, 2017

Here is a commentary on certain key terms defined under Sections 2(31) to 2(40) of the CGST Act, 2017:

Section 2(31) of CGST Act, 2017: Consideration

“Consideration” is the payment or value given in exchange for the supply of goods or services. It includes monetary payments, as well as the value of any act or forbearance. However, it does not include subsidies provided by the Central or State Government. A deposit given in relation to supply is only considered a payment if it is applied as consideration by the supplier.

Section 2(32) of CGST Act, 2017: Continuous Supply of Goods

“Continuous Supply of Goods” refers to an ongoing or recurrent supply of goods under a contract, for which the supplier invoices the recipient on a regular or periodic basis. The government may notify specific goods subject to certain conditions.

Section 2(33) of CGST Act, 2017: Continuous Supply of Services

“Continuous Supply of Services” pertains to a supply of services provided continuously or recurrently under a contract for a period exceeding three months with periodic payment obligations. The government may specify such services subject to certain conditions.

Section 2(34) of CGST Act, 2017: Conveyance

“Conveyance” includes vessels, aircraft and vehicles used for transportation purposes.

Section 2(35) of CGST Act, 2017: Cost Accountant

“Cost Accountant” is defined as per the Cost and Works Accountants Act, 1959, which refers to a professional who specializes in cost accounting.

Section 2(36) of CGST Act, 2017: Council

“Council” refers to the Goods and Services Tax Council established under Article 279A of the Indian Constitution, which is responsible for making recommendations to the Union and the States on various aspects of the GST system.

Section 2(37) of CGST Act, 2017: Credit Note

“Credit Note” is a document issued by a registered person under Section 34(1) of the Act, typically to reduce the tax liability for a previously issued invoice or to correct any errors in the invoice.

Section 2(38) of CGST Act, 2017: Debit Note

“Debit Note” is a document issued by a registered person under Section 34(3) of the Act, generally used to increase the tax liability for a previously issued invoice or to correct any errors in the invoice.

Section 2(39) of CGST Act, 2017: Deemed Exports

“Deemed Exports” refers to certain supplies of goods that may be notified under Section 147, which are treated as exports for specific purposes, although the goods do not actually leave the country.

Section 2(40) of CGST Act, 2017: Designated Authority

“Designated Authority” is an authority notified by the Board (Central Board of Indirect Taxes and Customs) for specific purposes under the GST Act.

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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.