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CMA Intermediate · Direct and Indirect Taxation · Introduction to GST Law

A word used in the Goods and Services Tax (Compensation to States) Act, 2017 is not defined in that Act but is defined in the Central Goods and Services Tax Act and the Integrated Goods and Services Tax Act. What meaning does the word carry in the Compensation Act?

The word carries the meaning assigned to it in the Central Goods and Services Tax Act and the Integrated Goods and Services Tax Act. The Compensation Act expressly borrows those meanings for terms it uses but does not itself define, so dictionary or State-law meanings do not apply.

  1. AThe meaning assigned to it in those ActsCorrect
  2. BThe meaning decided by the Council for each case
  3. CThe meaning in the State Goods and Services Tax Act of the concerned State
  4. DNo fixed meaning; the word is read in its ordinary dictionary sense

Explanation

Section 2(2) says that words and expressions used but not defined in the Compensation Act, yet defined in the CGST Act and the IGST Act, have the meanings respectively assigned to them in those Acts. Dictionary, Council or State-law meanings are not the prescribed route.

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