Sections 2(61) to 2(70) of the CGST Act, 2017: Definitions

Definitions of various important terms under Sections 2(61) to 2(70) of the CGST Act, 2017, unless the context otherwise requires:

Section 2(61): Meaning of Input Service Distributor

Input Service Distributor means an office of the supplier of goods or services or both which receives tax invoices issued under section 31 towards the receipt of input services and issues a prescribed document for the purposes of distributing the credit of central tax, State tax, integrated tax or Union territory tax paid on the said services to a supplier of taxable goods or services or both having the same Permanent Account Number as that of the said office.

Section 2(62): Meaning of Input Tax

Input Tax in relation to a registered person, means the central tax, State tax, integrated tax or Union territory tax charged on any supply of goods or services or both made to him and includes-

(a) the integrated goods and services tax charged on import of goods;

(b) the tax payable under the provisions of sub-sections (3) and (4) of section 9;

(c) the tax payable under the provisions of sub-sections (3) and (4) of section 5 of the Integrated Goods and Services Tax Act;

(d) the tax payable under the provisions of sub-sections (3) and (4) of section 9 of the respective State Goods and Services Tax Act; or

(e) the tax payable under the provisions of sub-sections (3) and (4) of section 7 of the Union Territory Goods and Services Tax Act,

but does not include the tax paid under the composition levy.

Section 2(63): Meaning of Input Tax Credit

Input Tax Credit means the credit of input tax.

Section 2(64): Meaning of Intra-State Supply of Goods

Intra-State Supply of Goods shall have the same meaning as assigned to it in section 8 of the Integrated Goods and Services Tax Act.

Section 2(65): Meaning of Intra-State Supply of Services

Intra-State Supply of Services shall have the same meaning as assigned to it in section 8 of the Integrated Goods and Services Tax Act.

Section 2(66): Meaning of Invoice or Tax Invoice

Invoice or Tax Invoice means the tax invoice referred to in section 31.

Section 2(67): Meaning of Inward Supply

Inward Supply in relation to a person, shall mean receipt of goods or services or both whether by purchase, acquisition or any other means with or without consideration.

Section 2(68): Meaning of Job Work

Job Work means any treatment or process undertaken by a person on goods belonging to another registered person and the expression “job worker” shall be construed accordingly.

Section 2(69): Meaning of Local authority

Local authority means-

(a) a “Panchayat” as defined in clause (d) of article 243 of the Constitution;

(b) a “Municipality” as defined in clause (e) of article 243P of the Constitution;

(c) a Municipal Committee, a Zilla Parishad, a District Board, and any other authority legally entitled to, or entrusted by the Central Government or any State Government with the control or management of a municipal or local fund;

(d) a Cantonment Board as defined in section 3 of the Cantonments Act, 2006;

(e) a Regional Council or a District Council constituted under the Sixth Schedule to the Constitution;

(f) a Development Board constituted under article 371 and article 371J of the Constitution; or [Refer Note 1]

(g) a Regional Council constituted under article 371A of the Constitution;

Section 2(70): Meaning of Location of the Recipient of Services

Location of the Recipient of Services means,-

(a) where a supply is received at a place of business for which the registration has been obtained, the location of such place of business;

(b) where a supply is received at a place other than the place of business for which registration has been obtained (a fixed establishment elsewhere), the location of such fixed establishment;

(c) where a supply is received at more than one establishment, whether the place of business or fixed establishment, the location of the establishment most directly concerned with the receipt of the supply; and

(d) in absence of such places, the location of the usual place of residence of the recipient.

Amendments History:

1. In Clause (f) of Section 2(69), the text ‘and article 371J’ inserted after the text ‘article 371’, vide Section 2(e) 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(61) to 2(70) of CGST Act, 2017

Sections 2(61) to 2(70) of the CGST Act, 2017, provides definitions of certain key terms related to goods and services tax (GST) in India. The commentary on these sections is as follows:

Section 2(61): Input Service Distributor (ISD)

Input Service Distributor (ISD) is an office of a supplier that receives tax invoices for input services and distributes the credit of taxes paid on these services to other suppliers with the same PAN.

Section 2(62): Input Tax

Input Tax refers to the taxes (central, state, integrated or Union territory) charged on the supply of goods or services made to a registered person. It includes taxes charged on import of goods, taxes payable under specific provisions of GST acts, but excludes tax paid under the composition levy.

Section 2(63): Input Tax Credit (ITC)

Input Tax Credit (ITC) refers to the credit of input tax.

Section 2(64) and 2(65): Intra-State Supply of Goods and Services

Intra-State Supply of Goods and Services refer to the supply of goods or services within the same state or Union territory, as defined in section 8 of the Integrated Goods and Services Tax Act.

Section 2(66): Invoice or Tax Invoice

Invoice or Tax Invoice refers to the tax invoice mentioned in section 31.

Section 2(67): Inward Supply

Inward Supply means the receipt of goods or services, whether by purchase, acquisition or other means, with or without consideration.

Section 2(68): Job Work

Job Work is any treatment or process undertaken by a person on goods belonging to another registered person and the term “job worker” is used accordingly.

Section 2(69): Local authority

Local authority  includes entities such as Panchayats, Municipalities, Municipal Committees, Zilla Parishads, District Boards, Cantonment Boards, Regional Councils, Development Boards and other authorities legally entrusted with the control or management of municipal or local funds.

Section 2(70): Location of the Recipient of Services

Location of the Recipient of Services refers to the place where a supply is received, whether at a registered place of business, fixed establishment or the usual place of residence of the recipient.

—–

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.