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The text below is these clauses of 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.
Clauses 2(31) and 2(73), verbatim (show)
(31) "consideration" in relation to the supply of goods or services or both 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 or services or both, whether by the recipient or by any other person but shall not include any subsidy given by the Central Government or a State Government;
(b) the monetary value of any act or forbearance, in respect of, in response to, or for the inducement of, the supply of goods or services or both, whether by the recipient or by any other person but shall not include any subsidy given by the Central Government or a State Government:
Provided that a deposit given in respect of the supply of goods or services or both shall not be considered as payment made for such supply unless the supplier applies such deposit as consideration for the said supply;
(73) "market value" shall mean the full amount which a recipient of a supply is required to pay in order to obtain the goods or services or both of like kind and quality at or about the same time and at the same commercial level where the recipient and the supplier are not related;
* Enforced w.e.f. 22nd July 2017.
2(31)consideration
"consideration" in relation to the supply of goods or services or both 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 or services or both, whether by the recipient or by any other person but shall not include any subsidy given by the Central Government or a State Government; (b) the monetary value of any act or forbearance, in respect of, in response to, or for the inducement of, the supply of goods or services or both, whether by the recipient or by any other person but shall not include any subsidy given by the Central Government or a State Government: Provided that a deposit given in respect of the supply of goods or services or both shall not be considered as payment made for such supply unless the supplier applies such deposit as consideration for the said supply;Section 2(31)
Payments in money or otherwise, and the monetary value of acts or forbearance, qualify when connected with the supply in the stated ways, whether from the recipient or another person. Central and State Government subsidies are excluded. A deposit becomes payment only when the supplier applies it as consideration.
2(73)market value
"market value" shall mean the full amount which a recipient of a supply is required to pay in order to obtain the goods or services or both of like kind and quality at or about the same time and at the same commercial level where the recipient and the supplier are not related;Section 2(73)
The amount is the full amount required for goods or services of like kind and quality at or about the same time and commercial level. The recipient and supplier must be unrelated.
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.
Consideration and market value clause (31) with its proviso, and clause (73)
Questions to answer on the file7 questions
References
- Central Board of Indirect Taxes and Customs. "Section 2. Consideration and market value". Central Goods and Services Tax Act, 2017, CBIC tax information portal. Retrieved 17 September 2026.
External links
- CGST Act, 2017, Section 2 on the CBIC tax information portal