Important Keywords: Section 2 of the GST (Compensation To States) Act 2017 Definitions, Section 2, Section 8, Section 10, Section 7, Section 3, Section 4.
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Section 2 of the Goods And Services Tax (Compensation To States) Act, 2017: Definitions.
(1) In this Act, unless the context otherwise requires,-
(a) “central tax” means the central goods and services tax levied and collected under the Central Goods and Services Tax Act;
(b) “Central Goods and Services Tax Act” means the Central Goods and Services Tax Act, 2017;
(c) “cess” means the goods and services tax compensation cess levied under section 8;
(d) “compensation” means an amount, in the form of goods and services tax compensation, as determined under section 7;
(e) “Council” means the Goods and Services Tax Council constituted under the provisions of article 279A of the Constitution;
(f) “Fund” means the Goods and Services Tax Compensation Fund referred to in section 10;
(g) “input tax” in relation to a taxable person, means,-
(i) cess charged on any supply of goods or services or both made to him;
(ii) cess charged on import of goods and includes the cess payable on reverse charge basis;
(h) “Integrated Goods and Services Tax Act” means the Integrated Goods and Services Tax Act, 2017;
(i) “integrated tax” means the integrated goods and services tax levied and collected under the Integrated Goods and Services Tax Act;
(j) “prescribed” means prescribed by rules made, on the recommendations of the Council, under this Act;
(k) “projected growth rate” means the rate of growth projected for the transition period as per section 3;
(l) “Schedule” means the Schedule appended to this Act;
(m) “State” means,-
(i) for the purposes of sections 3, 4, 5, 6 and 7 the States as defined under the Central Goods and Services Tax Act; and
(ii) for the purposes of sections 8, 9, 10, 11, 12, 13 and 14 the States as defined under the Central Goods and Services Tax Act and the Union territories as defined under the Union Territories Goods and Services Tax Act;
(n) “State tax” means the State goods and services tax levied and collected under the respective State Good sand Services Tax Act;
(o) “State Goods and Services Tax Act” means the law to be made by the State Legislature for levy and collection of tax by the concerned State on supply of goods or services or both;
(p) “taxable supply” means a supply of goods or services or both which is chargeable to the cess under this Act;
(q) “transition date” shall mean, in respect of any State, the date on which the State Goods and Services Tax Act of the concerned State comes into force;
(r) “transition period” means a period of five years from the transition date; and
(s) “Union Territories Goods and Services Tax Act” means the Union Territories Goods and Services Tax Act, 2017.
(2)The words and expressions used and not defined in this Act but defined in the Central Goods and Services Tax Act and the Integrated Goods and Services Tax Act shall have the meanings respectively assigned to them in those Acts.
Frequently Asked Questions
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What is the primary purpose of Section 2 of the Goods And Services Tax (Compensation To States) Act 2017?
The primary purpose of Section 2 is to provide clear definitions of key terms used throughout the Goods And Services Tax (Compensation To States) Act 2017, ensuring a common understanding for effective implementation.
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Which terms are defined in Section 2 of the Goods And Services Tax (Compensation To States) Act 2017?
Section 2 includes definitions of terms such as GST, State, Union territory, and other essential phrases that are crucial for interpreting the Act accurately.
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How does Section 2 of the Goods And Services Tax (Compensation To States) Act 2017 support the implementation of GST?
By providing standardized definitions, Section 2 eliminates ambiguity, facilitating a smoother and more effective implementation of GST across different states and Union territories.
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Why are definitions important in the context of Section 2 of the Goods And Services Tax (Compensation To States) Act 2017?
Definitions are vital as they ensure all stakeholders have a uniform understanding of the terminology, helping to avoid disputes and misinterpretations related to GST compliance.
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What role does the term State play in Section 2 of the Goods And Services Tax (Compensation To States) Act 2017?
The term State refers to any of the states of India, which are integral to the GST framework, as they receive compensation for revenue losses due to GST implementation.
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Can you explain the significance of the term Union territory in Section 2 of the Goods And Services Tax (Compensation To States) Act 2017?
The term Union territory signifies areas governed directly by the Central Government, and its inclusion in Section 2 highlights the need for GST provisions to be applicable across all regions, ensuring comprehensive coverage.
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How does Section 2 of the Goods And Services Tax (Compensation To States) Act 2017 impact taxpayers?
Section 2 provides clarity on the definitions used in the Act, helping taxpayers understand their rights and obligations under GST, ultimately leading to improved compliance and reduced confusion.
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Are there any specific examples of terms defined in Section 2 of the Goods And Services Tax (Compensation To States) Act 2017?
Yes, examples of defined terms include GST, which refers to the Goods and Services Tax itself, and compensation, which pertains to the financial support provided to states for revenue loss.
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How does Section 2 of the Goods And Services Tax (Compensation To States) Act 2017 enhance legal clarity?
By establishing precise definitions, Section 2 enhances legal clarity, allowing courts, legal practitioners, and taxpayers to interpret the Act consistently and resolve issues efficiently.
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What implications do the definitions in Section 2 of the Goods And Services Tax (Compensation To States) Act 2017 have for future amendments?
The definitions set forth in Section 2 serve as a foundational reference, meaning that any future amendments to the Act will require careful consideration to maintain consistency and clarity in relation to GST terminology.
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