CGST Sections 2(71) to 2(80): 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): 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): 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): 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): 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 2(75): 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): 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): 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): 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): Non-taxable Territory means the territory which is outside the taxable territory.

Section 2(80): Notification means a notification published in the Official Gazette and the expressions “notify” and “notified” shall be construed accordingly.

Section 2(80A): Online gaming means offering of a game on the internet or an electronic network and includes online money gaming. [*2]

Section 2(80B): Online money gaming means online gaming in which players pay or deposit money or money’s worth, including virtual digital assets, in the expectation of winning money or money’s worth, including virtual digital assets, in any event including game, scheme, competition or any other activity or process, whether or not its outcome or performance is based on skill, chance or both and whether the same is permissible or otherwise under any other law for the time being in force. [*2]

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. Clauses (80A) and (80B) inserted vide section 2(a) of the CGST (Amendment) Act, 2023, followed with Notification 48/2023 on commencement date of 01/10/2023.