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”Non-Taxable Territory”.
So what do you mean by “Non-Taxable Territory”?
Section 2(79) of CGST Act, 2017 – “non-taxable territory” means the territory which is outside the taxable territory;
Conclusion:
The territory which is outside the taxable territory; is known as “Non-Taxable Territory”.