CGST Sections 2(11) to 2(20): Definitions

Definitions of various important terms under Sections 2(11) to 2(20) of the CGST Act, 2017, unless the context otherwise requires:

Section 2(11): Assessment means determination of tax liability under this Act and includes self-assessment, re-assessment, provisional assessment, summary assessment and best judgment assessment.

Section 2(12): Associated Enterprises shall have the same meaning as assigned to it in section 92A of the Income-tax Act, 1961.

Section 2(13): Audit means the examination of records, returns and other documents maintained or furnished by the registered person under this Act or the rules made thereunder or under any other law for the time being in force to verify the correctness of turnover declared, taxes paid, refund claimed and input tax credit availed, and to assess his compliance with the provisions of this Act or the rules made thereunder.

Section 2(14): Authorised Bank shall mean a bank or a branch of a bank authorised by the Government to collect the tax or any other amount payable under this Act.

Section 2(15): Authorised Representative means the representative as referred to in section 116.

Section 2(16): Board means the Central Board of Indirect Taxes and Customs [*2] constituted under the Central Boards of Revenue Act, 1963.

Section 2(17): Business includes,-

(a) any trade, commerce, manufacture, profession, vocation, adventure, wager or any other similar activity, whether or not it is for a pecuniary benefit;

(b) any activity or transaction in connection with or incidental or ancillary to sub-clause (a);

(c) any activity or transaction in the nature of sub-clause (a), whether or not there is volume, frequency, continuity or regularity of such transaction;

(d) supply or acquisition of goods including capital goods and services in connection with commencement or closure of business;

(e) provision by a club, association, society, or any such body (for a subscription or any other consideration) of the facilities or benefits to its members;

(f) admission, for a consideration, of persons to any premises;

(g) services supplied by a person as the holder of an office which has been accepted by him in the course or furtherance of his trade, profession or vocation;

(h) activities of a race club including by way of totalisator or a license to book maker or activities of a licensed book maker in such club; and [*3(a)]

(i) any activity or transaction undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities.

Section 2(18):  Omitted [*3(b)]

Business Vertical Under GST: Meaning, Evolution and Current Status

Section 2(19): Capital Goods means goods, the value of which is capitalised in the books of account of the person claiming the input tax credit and which are used or intended to be used in the course or furtherance of business.

Section 2(20): Casual Taxable Person means a person who occasionally undertakes transactions involving supply of goods or services or both in the course or furtherance of business, whether as principal, agent or in any other capacity, in a State or a Union territory where he has no fixed place of business.

Notes (History of Amendments in Bare Text):

1. CGST Section 2 introduced vide GOI Notification dated 12/04/2017, followed with CBEC Notification 1/2017 on commencement date of 22/06/2017.

2. In clause (16), the text ‘Central Board of Excise and Customs’ substituted with the text ‘Central Board of Indirect Taxes and Customs’, vide Section 221 of Finance Act 2018, effective 29/03/2018.

3. Amendments vide Section 2 of the CGST (Amendment) Act, 2018, followed with Notification 2/2019 on commencement date of 01/02/2019:

(a) Sub-clause (h) of clause (17) substituted. Please refer GOI Notification dated 12/04/2017 for text thereof before substitution.

(b) Clause (18) omitted. Please refer GOI Notification dated 12/04/2017 for text thereof before substitution.