Section 2 - Definitions

Supply definition central to GST: governs taxable supply, input tax credit, reverse charge and territorial rules.

The draft Model GST Law provides a comprehensive definitional framework centralising core tax concepts - including supply, taxable supply, input tax, input tax credit, outward/inward supply and reverse charge - and sets territorial, person- and business-related categories (taxable person, place of business, casual/non-resident taxable persons) that determine tax liability and compliance. It further defines turnover aggregation, capital goods and inputs classifications, administrative roles and electronic mechanisms (common portal, electronic cash and credit ledgers, Input Service Distributor), and special treatments such as zero-rated and deemed export supplies.