Sections 2(71) to 2(80) of the CGST Act, 2017: Definitions

Definitions of various important terms under Sections 2(71) to 2(80) of the CGST Act, 2017, unless the context otherwise requires:

Section 2(71): Meaning of Location of the supplier of services

Location of the supplier of services means,-

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

(b) where a supply is made from 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 made from more than one establishment, whether the place of business or fixed establishment, the location of the establishment most directly concerned with the provisions of the supply; and

(d) in absence of such places, the location of the usual place of residence of the supplier;

Section 2(72): Meaning of Manufacture

Manufacture means processing of raw material or inputs in any manner that results in emergence of a new product having a distinct name, character and use and the term “manufacturer” shall be construed accordingly.

Section 2(73): Meaning of Market Value

Market Value shall mean the full amount which a recipient of a supply is required to pay in order to obtain the goods or services or both of like kind and quality at or about the same time and at the same commercial level where the recipient and the supplier are not related.

Section 2(74): Meaning of Mixed Supply

Mixed Supply means two or more individual supplies of goods or services, or any combination thereof, made in conjunction with each other by a taxable person for a single price where such supply does not constitute a composite supply.

Illustration: A supply of a package consisting of canned foods, sweets, chocolates, cakes, dry fruits, aerated drinks and fruit juices when supplied for a single price is a mixed supply. Each of these items can be supplied separately and is not dependent on any other. It shall not be a mixed supply if these items are supplied separately.

Section 8 of CGST Act 2017: Tax Liability on Composite and Mixed Supplies

Section 2(75): Meaning of Money

Money means the Indian legal tender or any foreign currency, cheque, promissory note, bill of exchange, letter of credit, draft, pay order, traveller cheque, money order, postal or electronic remittance or any other instrument recognised by the Reserve Bank of India when used as a consideration to settle an obligation or exchange with Indian legal tender of another denomination but shall not include any currency that is held for its numismatic value.

Section 2(76): Meaning of Motor Vehicle

Motor Vehicle shall have the same meaning as assigned to it in clause (28) of section 2 of the Motor Vehicles Act, 1988.

Section 2(77): Meaning of Non-resident Taxable Person

Non-resident Taxable Person means any person who occasionally undertakes transactions involving supply of goods or services or both, whether as principal or agent or in any other capacity, but who has no fixed place of business or residence in India.

Section 2(78): Meaning of Non-taxable Supply

Non-taxable Supply means a supply of goods or services or both which is not leviable to tax under this Act or under the Integrated Goods and Services Tax Act.

Section 2(79): Meaning of Non-taxable Territory

Non-taxable Territory means the territory which is outside the taxable territory.

Section 2(80): Meaning of Notification

Notification means a notification published in the Official Gazette and the expressions “notify” and “notified” shall be construed accordingly.

Amendments History:

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Commentary on Sections 2(71) to 2(80) of CGST Act, 2017

The sections 2(71) to 2(80) of the CGST Act, 2017 provide definitions for various important terms related to the Goods and Services Tax (GST) in India. Here’s a commentary on these terms:

Section 2(71): Location of the supplier of services

This section explains how to determine the location of a service supplier. It takes into account the place of business, fixed establishments and usual place of residence.

Section 2(72): Manufacture

This term refers to the process of creating a new product from raw materials or inputs. It also includes the term “manufacturer” to define the person or entity involved in the manufacturing process.

Section 2(73): Market Value

Market value is defined as the full amount a recipient needs to pay for obtaining goods or services of similar quality and at the same commercial level as the supplied goods or services.

Section 2(74): Mixed Supply

A mixed supply refers to two or more individual supplies of goods or services (or a combination) made together by a taxable person for a single price, which does not constitute a composite supply.

Section 2(75): Money

This section defines money as Indian legal tender, foreign currency or any other financial instrument recognized by the Reserve Bank of India (RBI), excluding currency held for its numismatic value.

Section 2(76): Motor Vehicle

The term motor vehicle is defined as per the Motor Vehicles Act, 1988.

Section 2(77): Non-resident Taxable Person

A non-resident taxable person is someone who occasionally undertakes transactions involving the supply of goods or services in India but does not have a fixed place of business or residence in the country.

Section 2(78): Non-taxable Supply

A non-taxable supply refers to a supply of goods or services that is not subject to tax under the CGST Act or the Integrated Goods and Services Tax Act.

Section 2(79): Non-taxable Territory

A non-taxable territory is any territory outside the taxable territory, i.e., the area where the CGST Act and other GST laws apply.

Section 2(80): Notification

A notification is an official communication published in the Official Gazette. The terms “notify” and “notified” are used in relation to such official communications.

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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.