Union Territory Goods and Services Tax Act, 2017 | Chapter I

Section 2 of UTGST Act, 2017 - Definitions

Section 2 of the Union Territory Goods and Services Tax Act, 2017 (Act 14 of 2017) explains ten statutory expressions used to interpret and administer Union territory goods and services tax. This guide sets out the definitions, their practical meaning and the updated list of Union territories.

The opening words, "In this Act, unless the context otherwise requires", mean that these statutory definitions generally govern interpretation throughout the Act, subject to the context of a particular provision. Section 2 commenced on 22 June 2017.

Definitions under Section 2

Section 2(1) - Appointed day

The date on which the provisions of the UTGST Act come into force.

Meaning and application: The commencement date is determined by the relevant government notification.

Section 2(2) - Commissioner

The Commissioner of Union territory tax appointed under section 3.

Meaning and application: This is the statutory tax administration office under the Act.

Section 2(3) - Designated authority

An authority notified by the Commissioner.

Meaning and application: The designation depends on the applicable notification.

Section 2(4) - Exempt supply

A supply of goods or services or both attracting a nil rate, exempted under section 8 of the UTGST Act or section 6 of the IGST Act, including a non-taxable supply.

Meaning and application: Nil-rated, specifically exempted and non-taxable supplies fall within this definition.

Section 2(5) - Existing law

Any pre-commencement law, notification, order, rule or regulation relating to levy and collection of duty or tax on goods or services or both, made by Parliament or a competent authority or person.

Meaning and application: This definition is particularly relevant to transitional provisions.

Section 2(6) - Government

The Administrator or an authority or officer authorised by the Central Government to act as Administrator.

Meaning and application: It does not simply mean every department of a Union territory.

Section 2(7) - Output tax

UTGST chargeable on taxable outward supplies made by a taxable person or agent, excluding tax payable by that person on a reverse charge basis.

Meaning and application: Reverse-charge liability is expressly excluded from output tax.

Section 2(8) - Union territory

The expression "Union territory" covers:

Andaman and Nicobar Islands;
Lakshadweep;
Dadra and Nagar Haveli and Daman and Diu;
Ladakh;
Chandigarh; and
other territory.

Statutory Explanation: For the purposes of the Act, each territory specified in sub-clauses (i) to (vi) is considered a separate Union territory.

2020 amendment: Section 137 of the Finance Act, 2020 (Act 12 of 2020) substituted the earlier separate references to Dadra and Nagar Haveli and to Daman and Diu with the merged Union territory Dadra and Nagar Haveli and Daman and Diu and added Ladakh. The earlier list on this page is therefore superseded.

Section 2(9) - Union territory tax

The tax levied under the UTGST Act.

Meaning and application: It generally operates alongside central GST on applicable intra-Union-territory supplies.

Section 2(10) - Terms defined in other GST laws

Undefined words and expressions take their meanings from the CGST Act, IGST Act, State GST Act and GST (Compensation to States) Act, where defined.

Meaning and application: Read interconnected GST definitions together, subject to context.

How these definitions affect UTGST

Exempt supply and input tax credit: The classification of a supply as exempt under section 2(4) may affect input tax credit and reversal requirements. Read the applicable provisions of the CGST Act, particularly sections 16 and 17, as applied to UTGST by section 21.

Output tax and reverse charge: Under section 2(7), output tax excludes amounts payable under reverse charge. Reverse-charge obligations must be examined separately under section 7(3) and 7(4), where applicable, together with the relevant notifications.

Cross-references: Section 2(10) incorporates meanings assigned by other GST statutes where the UTGST Act does not define a term. Section 21 additionally applies specified provisions of the CGST Act to UTGST with statutory modifications.

For a specific tax period or transaction, read the legislation together with amendments, commencement notifications, exemption notifications and binding judicial decisions applicable to that period.