Section 2(31) to 2(40) of the CGST Act, 2017: Definitions

Definitions of various important terms under Sections 2(31) to 2(40) of the CGST Act, 2017, as notified/ amended by Govt. of India/ CBIC upto 30th Sept. 2020, unless the context otherwise requires, are as under:

Section 2(31) > 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 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.
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.

Section 2(32) > 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.

Section 2(33) > 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.

Section 2(34) > conveyance includes a vessel, an aircraft and a vehicle.

Section 2(35) > cost accountant means a cost accountant as defined in clause (c) of sub-section (1) of section 2 of the Cost and Works Accountants Act, 1959. [It be noted that as per Section 2(1)(b) of the Cost and Works Accountants Act, 1959, “Cost Accountant” means a person who is a member of the Institute] 

Section 2(36) > Council means the Goods and Services Tax Council established under article 279A of the Constitution.

Section 2(37) > credit note means a document issued by a registered person under sub-section (1) of section 34.

Section 2(38) > debit note means a document issued by a registered person under sub-section (3) of section 34.

Section 2(39) > deemed exports means such supplies of goods as may be notified under section 147.

Section 2(40) > designated authority means such authority as may be notified by the Board.

Amendments History:

1. CBEC notifies 22nd June 2017 as the Commencement date for Section 2 of the CGST Act 2017, vide Notification 1/2017 Central Tax.

2. The text “clause (c)” substituted with the text “clause (b)” in Section 2(35) of the CGST Act 2017, vide Section 2(d) of the CGST (Amendment) Act, 2018: GOI Notification dt. 30 Aug. 2018, followed with CBIC Notification on commencement date of 1st Feb. 2019 vide Notification 2/2019 Central Tax dt. 29 Jan. 2019.

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Govt. has notified the CGST Act, 2017 on 12th April, 2017, which has subsequently been amended through the CGST (Extension to J&K) Act 2017, Finance Act 2018, CGST Amendment Act 2018, Finance (No. 2) Act 2019, Finance Act 2020, Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance 2020. Further, CBEC/ CBIC has also issued various Notifications from time to time, relating to the commencement date of various Sections/ Provisions in the respective CGST/ Amendment Acts, wherever required.

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