CGST Sections 2(61) to 2(70): 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): Input Service Distributor means an office of the supplier of goods or services or both which receives tax invoices towards the receipt of input services, including invoices in respect of services liable to tax under sub-section (3) or sub-section (4) of section 9 of this Act or under sub-section (3) or sub-section (4) of section 5 of the Integrated Goods and Services Tax Act, 2017 [*4], for or on behalf of distinct persons referred to in section 25, and liable to distribute the input tax credit in respect of such invoices in the manner provided in section 20. [*3]

Section 2(62): 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): Input Tax Credit means the credit of input tax.

Section 2(64): 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): 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): Invoice or Tax Invoice means the tax invoice referred to in section 31.

Section 2(67): 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): 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): 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 fund [*5(a)] or local fund;

Explanation.- For the purposes of this sub-clause,- [*5(b)]

(a) “local fund” means any fund under the control or management of an authority of a local self-government established for discharging civic functions in relation to a Panchayat area and vested by law with the powers to levy, collect and appropriate any tax, duty, toll, cess or fee, by whatever name called;

(b) “municipal fund” means any fund under the control or management of an authority of a local self-government established for discharging civic functions in relation to a Metropolitan area or Municipal area and vested by law with the powers to levy, collect and appropriate any tax, duty, toll, cess or fee, by whatever name called;

(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 [*2] of the Constitution; or

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

Section 2(70): 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.

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. The text ‘and article 371J’ inserted in Clause (f) of sub-section (69), vide Section 2(e) of the CGST (Amendment) Act, 2018, followed with Notification 2/2019 on commencement date of 01/02/2019.

3. Clause (61) substituted vide Section 11 of the Finance Act, 2024, followed with Notification 16/2024 on commencement date of 01/04/2025. Text thereof before substitution:

“Section 2(61): 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.” [effective up to 31/03/2025]

4. In clause (61), the text “of this Act or under sub-section (3) or sub-section (4) of section 5 of the Integrated Goods and Services Tax Act, 2017” inserted w.e.f. 1st day of April 2025, vide Section 121(i) of the Finance Act 2025.

5. Amendments in clause (69) made vide Section 121(ii) of the Finance Act 2025, commenced from 01/10/2025 vide Central Tax Notification 16/2025:

(a) in sub-clause (c), the word “fund” inserted after the text “management of a municipal”; and

(b) after sub-clause (c), the Explanation inserted.