Text
The text below is the section as served by the CBIC tax information portal on 17 September 2026, with the portal's own amendment footnote markers (shown as small numerals before a bracket) and its footnotes.[1] The Act as published in the Gazette of India is the legal source.
Section 2, verbatim (show)
Section 2. 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.
2(1)(a)central tax
"central tax" means the central goods and services tax levied and collected under the Central Goods and Services Tax Act;Section 2(1)(a)
Central tax is GST levied and collected under the Central Goods and Services Tax Act.
Questions to answer on the file2 questions
2(1)(b)Central Goods and Services Tax Act
"Central Goods and Services Tax Act" means the Central Goods and Services Tax Act, 2017;Section 2(1)(b)
The defined name identifies the Central Goods and Services Tax Act, 2017.
Questions to answer on the file2 questions
2(1)(c)cess
"cess" means the goods and services tax compensation cess levied under section 8;Section 2(1)(c)
Cess is the compensation cess levied under section 8.
Questions to answer on the file2 questions
2(1)(d)compensation
"compensation" means an amount, in the form of goods and services tax compensation, as determined under section 7;Section 2(1)(d)
The amount of compensation is determined under section 7.
Questions to answer on the file2 questions
2(1)(e)Council
"Council" means the Goods and Services Tax Council constituted under the provisions of article 279A of the Constitution;Section 2(1)(e)
The Council is the GST Council constituted under article 279A of the Constitution.
Questions to answer on the file2 questions
2(1)(f)Fund
"Fund" means the Goods and Services Tax Compensation Fund referred to in section 10;Section 2(1)(f)
The term identifies the GST Compensation Fund referred to in section 10.
Questions to answer on the file2 questions
2(1)(g)input tax
"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;Section 2(1)(g)
For a taxable person, input tax covers cess charged on supplies made to that person and on imported goods. It includes cess payable on reverse charge.
Questions to answer on the file5 questions
2(1)(h)Integrated Goods and Services Tax Act
"Integrated Goods and Services Tax Act" means the Integrated Goods and Services Tax Act, 2017;Section 2(1)(h)
The defined name identifies the Integrated Goods and Services Tax Act, 2017.
Questions to answer on the file2 questions
2(1)(i)integrated tax
"integrated tax" means the integrated goods and services tax levied and collected under the Integrated Goods and Services Tax Act;Section 2(1)(i)
Integrated tax is GST levied and collected under the Integrated Goods and Services Tax Act.
Questions to answer on the file2 questions
2(1)(j)prescribed
"prescribed" means prescribed by rules made, on the recommendations of the Council, under this Act;Section 2(1)(j)
A prescribed requirement comes from rules made under this Act on the Council’s recommendations.
Questions to answer on the file3 questions
2(1)(k)projected growth rate
"projected growth rate" means the rate of growth projected for the transition period as per section 3;Section 2(1)(k)
The rate is the growth rate projected for the transition period under section 3.
Questions to answer on the file2 questions
2(1)(l)Schedule
"Schedule" means the Schedule appended to this Act;Section 2(1)(l)
The term refers to the Schedule appended to this Act.
Questions to answer on the file2 questions
2(1)(m)State
"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;Section 2(1)(m)
For sections 3, 4, 5, 6 and 7, the CGST meaning of State applies. For sections 8, 9, 10, 11, 12, 13 and 14, the definition also includes Union territories under the specified Union Territories GST Act.
2(1)(n)State tax
"State tax" means the State goods and services tax levied and collected under the respective State Good sand Services Tax Act;Section 2(1)(n)
State tax is GST levied and collected under the concerned State GST Act.
Questions to answer on the file2 questions
2(1)(o)State Goods and Services Tax Act
"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;Section 2(1)(o)
The term identifies the State Legislature’s law for levy and collection of tax on supplies of goods, services or both.
Questions to answer on the file2 questions
2(1)(p)taxable supply
"taxable supply'' means a supply of goods or services or both which is chargeable to the cess under this Act;Section 2(1)(p)
A supply is within this definition when it is chargeable to cess under this Act.
Questions to answer on the file2 questions
2(1)(q)transition date
"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;Section 2(1)(q)
Each State’s transition date is the date its State GST Act comes into force.
Questions to answer on the file2 questions
2(1)(r)transition period
"transition period" means a period of five years from the transition date; andSection 2(1)(r)
The period runs for five years from the transition date.
Questions to answer on the file4 questions
2(1)(s)Union Territories Goods and Services Tax Act
"Union Territories Goods and Services Tax Act" means the Union Territories Goods and Services Tax Act, 2017.Section 2(1)(s)
The defined name identifies the Union Territories Goods and Services Tax Act, 2017.
Questions to answer on the file2 questions
Questions to answer on the file
Questions a reviewer answers from the engagement file, grouped by the part of the section they come from. They describe what the section asks; they do not decide it.
State meaning for compensation sections 2(1)(m)(i)
Questions to answer on the file3 questions
State meaning for cess sections 2(1)(m)(ii)
Questions to answer on the file4 questions
Undefined imported expressions 2(2)
Questions to answer on the file5 questions
Frequently asked questions
When can context change a definition?
The law does not settle when the statutory context requires a different meaning. The opening qualification applies to these definitions.
Section 2(1)
What meaning do words this Act does not define carry?
Under sub-section (2), words and expressions used but not defined in this Act, and defined in the Central Goods and Services Tax Act and the Integrated Goods and Services Tax Act, carry the meanings assigned to them in those Acts.
Section 2(2)
Relationship with other provisions
| Provision | Connection | Words that tie them |
|---|---|---|
| Section 3 | this provision defined by Section 3 | projected growth rate |
| Section 7 | this provision defined by Section 7 | as determined under section 7 |
| Section 8 | this provision defined by Section 8 | cess levied under section 8 |
| Section 10 | this provision defined by Section 10 | Fund referred to in section 10 |
Circulars and notifications
Circulars and notifications in the CBIC repository that cite this section, newest first, by number, date and subject. A listing here does not say what an instrument decides; read the instrument.
Notifications (1)
| Number | Date | Subject |
|---|---|---|
| Notification No. 01/2018-Compensation Cess | 14 November 2018 | Notification No. 1/2018 dated 14.11.2018 which notifies the list of Acts of Central Government and State Governments under which specified taxes are being subsumed into the Goods and Services Tax. |
Unsettled questions
The words of section 2 do not answer these questions. Where one decides a matter on the file, the answer depends on the position taken on it.
- When does the selected statutory context require a meaning different from the stated definition?
- When does the selected statutory context require a meaning different from the stated definition?
- When does the selected statutory context require a meaning different from the stated definition?
- When does the selected statutory context require a meaning different from the stated definition?
- When does the selected statutory context require a meaning different from the stated definition?
- When does the selected statutory context require a meaning different from the stated definition?
- When does the selected statutory context require a meaning different from the stated definition?
- When does the selected statutory context require a meaning different from the stated definition?
- When does the selected statutory context require a meaning different from the stated definition?
- When does the selected statutory context require a meaning different from the stated definition?
- When does the selected statutory context require a meaning different from the stated definition?
- When does the selected statutory context require a meaning different from the stated definition?
- When does the selected statutory context require a meaning different from the stated definition?
- When does the selected statutory context require a meaning different from the stated definition?
- When does the selected statutory context require a meaning different from the stated definition?
- When does the selected statutory context require a meaning different from the stated definition?
- When does the selected statutory context require a meaning different from the stated definition?
- When does the selected statutory context require a meaning different from the stated definition?
- When does the selected statutory context require a meaning different from the stated definition?
- When does the selected statutory context require a meaning different from the stated definition?
See also
- Section 7 of the GST (Compensation to States) Act, 2017: calculation and release of compensation
- Section 8 of the GST (Compensation to States) Act, 2017: levy and collection of cess
- Section 10 of the GST (Compensation to States) Act, 2017: crediting proceeds of cess to Fund
References
- Central Board of Indirect Taxes and Customs. "Section 2. Definitions". Goods and Services Tax (Compensation to States) Act, 2017, CBIC tax information portal. Retrieved 17 September 2026.
External links
- GST (Compensation to States) Act, 2017, Section 2 on the CBIC tax information portal