... in tract that's circulating, referencing Buddhist works (7)
I believe the answer is:
tantric
'referencing buddhist works' is the definition.
'in tract that's circulating' is the wordplay.
'that's circulating' indicates anagramming the letters.
'in'+'tract'='intract'
'intract' anagrammed gives 'TANTRIC'.
(Other definitions for tantric that I've seen before include "Type of Buddhism" , "Of a style of Hindu or Buddhist religious teaching" , "Relating to Hindu or Buddhist mystical texts" , "Of Hindu/Buddhist ritual" , "like some Buddhists" .)