Section 2(31) of CGST Act: Meaning of “Consideration”

Definition of the term “Consideration” under the Central Goods and Services Tax (CGST) Act, 2017

As per Section 2(31) of the Central Goods and Services Tax (CGST) Act, 2017, unless the context otherwise requires, the term “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.

Central Goods and Services Tax (CGST) Act, 2017 (Chapter-wise/ Section-wise)

Section 2 of CGST Act, 2017: Definitions

Leave a Reply