Section 2 - Definitions.

Taxable supply definition frames GST scope and determines registration, incidence and input tax credit rules under state law.

The Act provides an operative lexicon defining who is taxable and how transactions are classified for State GST purposes. It fixes the scope of levy through definitions of taxable supply, registered person, aggregate turnover, place of supply and taxable territory; specifies supply types such as composite, mixed and continuous supplies; and defines input tax, input tax credit, electronic ledgers, reverse charge and composition levy to determine incidence, credit entitlement and compliance mechanics.