Introduction:
The GST Act came in force from 1st July, 2017. There were many interpretation issues with respect to the definitions, glossary and terms use in the law. Since, such definitions were adopted from various legacy laws in India prior to GST; such as Service Tax, State VAT, Central Excise Act, Luxury Tax, Entertainment Tax, etc. it was difficult to make applicable one definition for different sectors. Hence, some modifications from existing definitions were made. Therefore, it was important to established a nexus of the terms used in the GST definitions. The definition discussed here is”Money”.
So what do you mean by “Money”?
Section 2(75) of CGST Act, 2017 – “money” means the Indian legal tender or any foreign currency, cheque, promissory note, bill of exchange, letter of credit, draft, pay order, traveller cheque, money order, postal or electronic remittance or any other instrument recognised by the Reserve Bank of India when used as a consideration to settle an obligation or exchange with Indian legal tender of another denomination but shall not include any currency that is held for its numismatic value;
Conclusion:
Indian legal tender: Foreign currency, Cheque, Promissory note, Bills of exchange, Letter of credit, Draft, Pay order, Traveller cheque, Money order, Postal or electronic remittance, Other ( Recongnized by RBI to settle an obligation or in exchange of Indian legal tender denomination).