GST

 THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 NO. OF 2017

An Act to make a provision for levy and collection of tax on intra-state supply of goods or services or both by the Central Government and for matters connected therewith or incidental thereto.

BE it enacted by parliament in the sixty-eighth Year of the Republic of India as follows: -  

1. Short title, extent and commencement. -(a) This Act may be called the Central Goods and Services Tax Act, 2017.

(b) It extends to the whole of India (*******)'

(c) It shall come into force on such date as the Central Government may, by notification in the official Gazette, appoint:

Provided that different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision

(2) Definitions - In this Act, unless the context

otherwise requires, (a) " actionable claim" shall have the same meaning as assigned to it in section 3 of the Transfer of Property Act, 1882.

(b) " address of delivery" means the address of the recipient of goods or services or both indicated on the tax invoice issued by a registered person for delivery of such goods or services or both.

(c) "address on record" means the address of the recipient as available in the records of the supplier.

(d) " adjudicating authority" means any authority, appointed or authorized to pass order or decision under this Act, but does not include the (Central Board of Indirect Taxes and Customs), the Revisional Authority, the Authority for Advance Ruling the Appellate Tribunal and the Authority referred to in sub-section (2) of section 171)

(e) "agent" means a person, including a factor, broker, commission agent, Arratia, del criadera agent, an auctioneer or any other mercantile agent, by whatever name called who carries on the business of supply or receipt of goods or services or both on behalf of another.

(f) "aggregate turnover" means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exports of goods or services or both and inter-state supplies of persons having the same Permanent Account Number, to be computed on all India basis but excludes central tax, State tax, Union territory tax integrated tax and cess.

(g) " agriculturist" means an individual or a Hindu Undivided Family who undertakes cocultivation of land-

(b) by the Laboure of family, or

(c) by servants on wages payable in cash or kind or by hired Laboure under personal supervision or the personal supervision of any member of the family.

(d) "Appellate Authority" means an authority appointed or authorized to hear appeals as referred to in section 107

(1) "Appellate Tribunal" means the Goods and services Tax Appellate Tribunal constituted under section 109

(2) " appointed day" means the date on which the provisions of this Act shall come into force.

(3) "Board" means the (Central Board of Indirect Taxes and customs) constituted the Central Board or Revenue Act 1963

(4) "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

"BUSINESS" INCCLUDES - 

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

(b) any activity or transaction in commotion with or incidental or ancillary to sub-clause 

(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 totalizator or a license to book maker or activities of a licensed book maker in such club; and}

(1) " capital goods" means goods, the value of which is capitalized 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.

(2) "causal taxable person" means a person who occasionally undertakes transactions involving supply of goods or services or both in the Couse or furtherance of business, whether as principal, agent or in any other capacity, in a state or a Union territory here he has no fixed place of business.

(3) "central tax" means the central goods and services tax levied under section 9.

4. " common working days" in respect of a State or Union territory shall mean such days in succession which are not declared as gazette holidays by the Central Government or the concerned State or Union Territory Government.

5. "commissioner" means the Commissioner of central tax and includes the Principal Commissioner of central tax appointed under section 3 and the commissioner of integrated tax appointed under the Integrated Goods and Services Tax Act.

6. "composite supply" means a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply.

7. "cess" shall have the same meaning as assigned to it in the Goods and Services Tax (Compensation to States) Act.

8. "chartered accountant" means a chartered accountant as defined in clause (b) of sub-section (1) of section 2 of the Chartered Accountants Act, 1949

 

9. "Commissioner in the Board" means the commissioner referred to in section 168.

10. "common portal" means the common goods and services tax electronic portal referred to in section 146.

11. "competent authority" means such authority as may be notified by the Government.

Illustration - Where goods are packed and transported with insurance, the supply of goods, packing material, transport and insurance is a composite supply and supply of goods is a principal supply.

12. "consideration" in relation to the supply of goods or services or both includes-

(a) any payment made or to be made, whether in money or otherwise, in respect of, in response to, or for the inducement of, the supply of goods or services or both, whether by the recipient or by any other person but shall not include any subsidy given by the Central Government or a State Government.

(b) the monetary value of any act or forbearance, in respect of, in response to, or for the inducement of, the supply of goods ro services or both, whether by the recipient or by any other person but shall not include any subsidy given by the Central Government or a State Government.

provided that a deposit given in respect of the supply of goods or services, or both shall not be considered as payment made for such supply unless the supplier applies such deposit as consideration for the said supply.

 13. "continuous supply of goods" means a supply of goods which is provided, or agreed to be provided, continuously or on recurrent basis, under a contract, whether or not by means of a wire, cable, pipeline or other conduit, and for which the supplier invoices the recipient on a regular or periodic basis and includes supply of such goods as the Government may, subject to such conditions, as it may, by notification, specify;

14."continuous supply of services" means a supply of services which is provided, or agreed to be provided, continuously or on recurrent basis, under a contract, for a period exceeding three months with periodic payment obligations and includes supply of such services as the Government may, subject to such conditions, as it may, by notification, specify.

15. "drawback" in relation to any goods manufactured in India and exported, means the rebate of duty, tax or cess chargeable on any imported inputs or on any domestic inputs or input services used in the manufactured of such goods.

16. "document" includes written or printed record of any sort and electronic record as defined in clause (1) of section 2 of the Information Technology Act, 2000

17. "conveyance" includes a vessel, an aircraft and a vehicle.

18. "cost accountant "means a cost accountant as defined in (Clause (b) of sub-section(I) of section 2 of the Cost and works Accountants Act, 1959

19. "credit note" means a document issued by a registered person under sub-section (1) of section 34. 

20. "debit note" means a document issued by a registered person under sub-section (3) of section 34.