Sections 2(41) to 2(50) of the CGST Act, 2017: Definitions

Definitions of various important terms under Sections 2(41) to 2(50) of the CGST Act, 2017, unless the context otherwise requires:

Section 2(41): Meaning of Document

Document includes written or printed record of any sort and electronic record as defined in clause (t) of section 2 of the Information Technology Act, 2000.

Section 2(42): Meaning of Drawback

Drawback in relation to any goods manufactured in India and exported, means the rebate of duty, tax or cess chargeable on any imported inputs or on any domestic inputs or input services used in the manufacture of such goods.

Section 2(43): Meaning of Electronic Cash Ledger

Electronic Cash Ledger means the electronic cash ledger referred to in sub-section (1) of section 49.

Section 2(44): Meaning of Electronic Commerce

Electronic Commerce means the supply of goods or services or both, including digital products over digital or electronic network.

Section 2(45): Meaning of Electronic Commerce Operator

Electronic Commerce Operator means any person who owns, operates or manages digital or electronic facility or platform for electronic commerce.

Section 2(46): Meaning of Electronic Credit Ledger

Electronic Credit Ledger means the electronic credit ledger referred to in sub-section (2) of section 49.

Section 2(47): Meaning of Exempt Supply

Exempt Supply means 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 non-taxable supply.

Section 2(48): Meaning of 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(49): Meaning of Family

Family means,–

(i) the spouse and children of the person, and

(ii) the parents, grand-parents, brothers and sisters of the person if they are wholly or mainly dependent on the said person.

Section 2(50): Meaning of Fixed Establishment

Fixed Establishment means a place (other than the registered place of business) which is characterised by a sufficient degree of permanence and suitable structure in terms of human and technical resources to supply services, or to receive and use services for its own needs.

Amendments History:

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Commentary on Sections 2(41) to 2(50) of CGST Act, 2017

This commentary explains the definitions of various important terms under Sections 2(41) to 2(50) of the CGST Act, 2017:

Sections 2(41) CGST Act, 2017: Document

A “document” refers to any written or printed record, as well as electronic records as defined by the Information Technology Act, 2000. This term encompasses all kinds of records and documents related to GST compliance, including invoices, receipts and other relevant documentation.

Sections 2(42) CGST Act, 2017: Drawback

“Drawback” is a rebate on the duty, tax or cess charged on imported or domestic inputs or input services used in manufacturing goods that are then exported. This provision aims to encourage exports by reducing the tax burden on manufacturers.

Sections 2(43) CGST Act, 2017: Electronic Cash Ledger

The “electronic cash ledger” is a digital record of a taxpayer’s cash transactions under the GST regime, as described in section 49(1). It records the amounts deposited, utilized and available for future use in the payment of GST liabilities.

Sections 2(44) CGST Act, 2017: Electronic Commerce

“Electronic commerce” refers to the supply of goods, services or both, including digital products, over a digital or electronic network. This includes online transactions and digital marketplaces.

Sections 2(45) CGST Act, 2017: Electronic Commerce Operator

An “electronic commerce operator” is a person who owns, operates, or manages a digital or electronic facility or platform for electronic commerce. These individuals are responsible for collecting and remitting GST on behalf of suppliers using their platforms.

Sections 2(46) CGST Act, 2017: Electronic Credit Ledger

The “electronic credit ledger” is a digital record of a taxpayer’s input tax credits under the GST regime, as described in section 49(2). It records the amounts of input tax credit available, utilized and remaining for future use.

Sections 2(47) CGST Act, 2017: Exempt Supply

“Exempt supply” refers to the supply of goods or services that are subject to a nil tax rate or are wholly exempt from tax under the CGST Act or the Integrated Goods and Services Tax Act. It also includes non-taxable supplies, which are supplies not covered by the GST regime.

Sections 2(48) CGST Act, 2017: Existing Law

“Existing law” refers to any law, notification, order, rule or regulation related to the levy and collection of duty or tax on goods or services that were enacted or issued before the commencement of the CGST Act.

Sections 2(49) CGST Act, 2017: Family

“Family” is defined as the spouse and children of a person, as well as the person’s parents, grandparents, brothers and sisters, if they are mainly or wholly dependent on that person. This definition is relevant for determining the family’s financial interests and relationships in various GST provisions.

Sections 2(50) CGST Act, 2017: Fixed Establishment

A “fixed establishment” is a location other than the registered place of business with a sufficient degree of permanence and suitable structure, in terms of human and technical resources, to supply services or to receive and use services for its own needs. This term is relevant for determining the place of supply and tax jurisdiction in certain situations.

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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.