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Arjuna (Fictional Character): Krishna, the festival of Navratri has started and there is a joyful atmosphere everywhere. Also, the government is working very hard and fast to bring GST under implementation from 1st April 2017. It is very important that everyone is aware with the concept of GST. So say something about important definitions of GST today.

Krishna (Fictional Character): Arjuna, to bring GST under implementation, the working system of government has become superfast. That is why, we are getting to read about it in newspapers and on television. In this GST law, as majorly VAT, Excise, Service tax are getting subsumed, it will affect everyone i.e. seller of goods or service provider and similarly, purchaser of goods or service receiver. One will have to levy the tax after understanding the law while the other will have to pay it. Today, there are various different definitions under various laws. But in GST, the definitions will remain the same. And it is essential that everyone understands them. As Navratri is a festival that is celebrated for nine days, let's understand nine important definitions of GST on this occasion.

Arjuna (Fictional Character): Krishna, what are the important nine definitions of GST?

Krishna (Fictional Character): Arjuna, the government has released model GST law and according to it, the nine important definitions of GST are as follows:

1. Goods: "Goods" means every kind of movable property other than actionable claim and money but includes securities, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before supply or under the contract of supply. For the purpose of this clause, the term "moveable property" shall not include any intangible property.

2. Service: "Services" means anything other than goods. Services include intangible property and actionable claim but does not include money.

3. CGST: "CGST" means the tax levied under the Central Goods and Services Tax Act, 2016. SGST: "SGST" means the tax levied under the State Goods and Services Tax Act, 2016.

4. IGST: "IGST" means the tax levied under the Integrated Goods and Services Tax Act, 2016.

5. Person: "Person" includes"”

(a) an individual;
(b) a Hindu undivided family;
(c) a company;
(d) a firm;
(e) a Limited Liability Partnership;
(f) an association of persons or a body of individuals, whether incorporated or not, in India or outside India;
(g) any corporation established by or under any Central, State or Provincial Act.
(h) any body corporate incorporated by or under the laws of a country outside India;
(i) a co-operative society.
(j) a local authority;
k) government;
(l) society
(m) trust.

6. Works Contract: "Works Contract" means an agreement for carrying on building, construction, fabrication, erection, installation, fitting out, improvement, modification, repair, renovation or commissioning of any moveable or immovable property.

7. Place of Business: "place of business" includes

(a) a place from where the business is ordinarily carried on, and includes a warehouse, a godown or any other place where a taxable person stores his goods.

(b) a place where a taxable person maintains his books of account.

(c) a place where a taxable person is engaged in business through an agent.

8. Aggregate Turnover: "Aggregate Turnover" means the aggregate value of all taxable and non-taxable supplies, exempt supplies and exports of goods and/or services of a person having the same PAN, to be computed on all India basis and excludes taxes, if any, charged under the CGST Act, SGST Act and the IGST Act, as the case may be. Aggregate turnover does not include the value of supplies on which tax is levied on reverse charge basis and the value of inward supplies.

9. Business: "Business" includes -

a. Any trade, commerce, manufacture, profession, vocation or any other similar activity, whether or not it is for a pecuniary benefit.

b. Any transaction in connection with or incidental or ancillary to (a) above.

c. Any transaction in the nature of (a) above, whether or not there is volume, frequency, continuity or regularity of such transaction.

d. Supply or acquisition of goods including capital assets 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, as the case may be.

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; In this, the most important definition is of supply as it will only help to decide the levy of tax. We will discuss about it in detail in next article.

Arjuna (Fictional Character): Krishna, what should people learn from all these?

Krishna (Fictional Character): Arjuna, let it be any law, if it is understood from its root, then only it will be good and helpful. As whether a building is sturdy or not is understood on the basis of its base. Similarly, these terms are the base of GST law. The sections, rules, etc. of this law are made on the basis of these terms only.

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Category GST, Other Articles by - CA Umesh Sharma