Preliminary and Administration
Definitions (Section 2)
Section 2 of the Central Goods and Services Tax Act, 2017 (“the CGST Act, 2017” or “the CGST Act”) Agriculturist [Section 2(7)]
Q1. Define the term ‘agriculturist’ under CGST Act, 2017.
Ans. As per Section 2(7) of the CGST Act, 2017, “agriculturist” means an individual or a Hindu Undivided Family who undertakes cultivation of land—
(a) by own labour, or
(b) by the labour of family, or
(c) by servants on wages payable in cash or kind or by hired labour under personal supervision or the personal supervision of any member of the family.
Q2. Mr. X having 30 acres of land undertakes cultivation with the help of his two sons. Is Mr. X an agriculturist within the terms of the CGST Act?
Ans. As per Section 2(7) of the CGST Act, the term “agriculturist” means an individual who undertakes cultivation of land even by the labour of family. Therefore, Mr. X being an individual and using labour of his two sons for cultivation of land is an agriculturist within the meaning of the CGST Act, 2017.
Person [Section 2(84)]
Q3. Define the term ‘person’ under the CGST Act?
Ans. As per Section 2(84) of the CGST Act, “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 Act, State Act or Provincial Act or a Government company as defined in section 2(45) of the Companies Act, 2013;
(h) any body corporate incorporated by or under the laws of a country outside India;
(i) a co-operative society registered under any law relating to co-operative societies;
(j) a local authority;
(k) Central Government or a State Government;
(l) society as defined under the Societies Registration Act, 1860;
(m) trust; and
(n) every artificial juridical person, not falling within any of the above.
Taxable Person [Section 2(107)]
Q4. Define the term ‘taxable person’ under the CGST Act?
Ans. As per Section 2(107) of the CGST Act, “taxable person” means a person who is registered or liable to be registered under section 22 or section 24.
Casual Taxable Person [Section 2(20)]
Q5. Define the term ‘casual taxable person’ under the CGST Act?
Ans. As per Section 2(20) of the CGST Act, “casual taxable person” means a person who occasionally undertakes transactions involving supply of goods or services or both in the course or furtherance of business, whether as principal, agent or in any other capacity, in a State or a Union territory where he has no fixed place of business.
Business [Section 2(17)]
Q6. Define the term “Business” under the CGST Act, 2017?
Ans. As per Section 2(17) of the CGST Act, business includes:
(a) any trade, commerce, manufacture, profession, vocation, adventure, wager or any other similar activity, whether or not it is for a pecuniary benefit;
(b) any activity or transaction in connection with or incidental or ancillary to sub-clause (a);
(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) 1activities of a race club including by way of totalisator or a license to book maker or activities of a licensed book maker in such club; and;
This has been amended from “services provided by a race club by way of totalisator or a licence to book maker in such club; and”, to ensure that all activities related to a race club are included in the definition of business. Moreover, this amendment has done away the ambiguity, which prevails due to the term “services”, as definition of “goods” in the CGST Act, 2017 includes actionable claims.
(i) any activity or transaction undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities.
Place of business [Section 2(85)]
Q7. Define the term “place of business” under the CGST Act, 2017?
Ans. As per Section 2(85) of the CGST Act, 2017, “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, supplies or receives goods or services or both; or
(b) a place where a taxable person maintains his books of account; or
(c) a place where a taxable person is engaged in business through an agent, by whatever name called.
To know more in details, find the enclosed attachment