Key Definitions Under GST, Definition of various key words used in GST, Check Various Definitions under Goods and Service Tax Model. Here we are providing Definitions of various key words used in GST like – Definition of Aggregate turnover, Definition of Business, Definition of Capital goods, Definition of, Definition of Deemed exports etc. Now scroll down below n check more details for “Key Definitions Under GST, Definition of various key words used in GST”
Key Definitions Under GST, Definition of various key words used in GST
Aggregate turnover means the aggregate value of all taxable and nontaxable 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.
Business has been widely defined to include trade, commerce, manufacture, profession, vocation or any other similar activity, including transactions related or incidental thereto, irrespective of volume or frequency, as well as supply of goods/ services in connection with commencement or closure of business.
The definition of ‘business’ is expansive and appears to have been borrowed from State VAT legislations, with modifications made to include transactions in services.
Capital goods definition is similar to the current definition in Rule 2(a) of CENVAT Credit Rules, 2004. The definition however does not appear to include the changes brought in by the Union Budget 2016-17 amendments to the CENVAT Credit Rules. Further, for manufacturers, capital goods have been confined to only those used at the place of business.
Consideration in relation to the supply of goods and/or services to any person, 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 and/or services, whether by the said person or by any other person (b) the monetary value of any act or forbearance, whether or not voluntary, in respect of, in response to, or for the inducement of, the supply of goods and/or services, whether by the said person or by any other person The definition excludes from its ambit, any deposit, whether refundable or not, given in respect of the supply of goods and/or services unless the supplier applies the deposit as a consideration for the supply. Valuation Rules in this regard have been prescribed, which are discussed separately.
Deemed exports has been defined to include transactions in which the goods supplied do not leave India, and payment for such supplies is received either in Indian Rupees or in convertible foreign exchange. Transactions that will get covered within deemed exports shall be notified by the Government. The Model GST Law is presently silent on treatment of supplies to SEZS, STPs and EOUs; it is likely that the same may find place in such notification. Further, zero rated supply status is expected to be granted to deemed exports.
Export of services and Import of services
Export of services and Import of services have been defined to exclude transactions between establishments of the same person in India and outside India.
Exports of goods and services
Exports of goods and services have been included within the scope of zero-rated supplies. Zero-rated supplies are defined as any supply of goods/ services on which no tax is payable but credit of related input tax credit is admissible.
Services means anything other than goods. It has been clarified that services would include intangible property and actionable claim but not include money. Correspondingly, goods have been defined to exclude intangibles. While specific inclusion of intangible property will go a long way, to resolve existing controversy, inclusion of actionable claim is likely to create ambiguity in various financial and commercial arrangements. Further, under separate provisions, supply of software, works contracts and leasing transactions have been deemed to be services.
Works contract have been defined to mean an agreement for carrying out for cash, deferred payment or other valuable consideration, building, construction, fabrication, erection, installation, fitting out, improvement, modification, repair, renovation or commissioning of any moveable or immovable property. Deeming of works contracts as services should simplify taxation of works contracts. However, whether a particular contracting structure qualifies as a works contract, is a determination that the taxpayer would need to undertake.
Composite supply have been defined to include any combination of services and/ or goods provided in the course of furtherance of business. While the principles of classification have not been included in the Model GST Law, it is possible that such contracts could be treated as bundled supplies and specific classification rules proposed for the same.
especially because in all public discussion the industry has been given to understand by Government authorities that branch transfers will attract IGST. It is specifically clarified that supply of goods by a registered taxable person to a job worker shall not be considered as a supply of goods. Further, under Section 43A, supply of raw material and receipt of goods after completion of job-work may be done without payment of tax, subject to permission from the Commissioner.
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