IGST Section 2 – Definitions [Updated 2019]

IGST Section 2 – Definitions

IGST Section 2 (1)

“Central Goods and Services Tax Act” means the Central Goods and Services Tax Act, 2017

IGST Section 2 (2)

‘‘central tax” means the tax levied and collected under the Central Goods and Services Tax Act;

IGST Section 2 (3)

“continuous journey” means a journey for which a single or more than one ticket or invoice is issued at the same time, either by a single supplier of service or through an agent acting on behalf of more than one supplier of service, and which involves no stopover between any of the legs of the journey for which one or more separate tickets or invoices are issued

 Explanation.––For the purposes of this clause, the term “stopover” means a place where a passenger can disembark either to transfer to another conveyance or break his journey for a certain period in order to resume it at a later point of time.

IGST Section 2 (4)

“customs frontiers of India” means the limits of a customs area as defined in section 2 of the Customs Act, 1962.

IGST Section 2 (5)

“export of goods” with its grammatical variations and cognate expressions, means taking goods out of India to a place outside India

IGST Section 2 (6)

“export of services” means the supply of any service when,-

(i) the supplier of service is located in India;
(ii) the recipient of service is located outside India;
(iii) the place of supply of service is outside India;
(iv) the payment for such service has been received by the supplier of service in convertible foreign exchange [1][or in Indian rupees wherever permitted by the Reserve Bank of India]; and
(v) the supplier of service and the recipient of service are not merely establishments of a distinct person in accordance with Explanation 1 in section 8;

IGST Section 2 (7)

“fixed establishment” means a place (other than the registered place of business) which is characterised by a sufficient degree of permanence and suitable structure in terms of human and technical resources to supply services, or to receive and use services for its own needs;

IGST Section 2 (8)

“Goods and Services Tax (Compensation to States) Act” means the Goods and Services Tax (Compensation to States) Act, 2017;

IGST Section 2 (9)

“Government” means the Central Government;

IGST Section 2 (10)

‘import of goods” with its grammatical variations and cognate expressions, means bringing goods into India from a place outside India;

IGST Section 2 (11)

‘‘import of services” means the supply of any service, where–

(i) the supplier of service is located outside India;

(ii) the recipient of service is located in India; and

(iii) the place of supply of service is in India;

IGST Section 2 (12)

“integrated tax” means the integrated goods and services tax levied under the Integrated Goods and Services Tax Act;

IGST Section 2 (13)

“intermediary” means a broker, an agent or any other person, by whatever name called, who arranges or facilitates the supply of goods or services or both, or securities, between two or more persons, but does not include a person who supplies such goods or services or both or securities on his own account.

IGST Section 2 (14)

“location of the recipient of services” means, —

  1. where a supply is received at a place of business for which the registration has been obtained, the location of such place of business;
  2. where a supply is received at a place other than the place of business for which registration has been obtained (a fixed establishment elsewhere), the location of such fixed establishment;
  3. where a supply is received at more than one establishment, whether the place of business or fixed establishment, the location of the establishment most directly concerned with the receipt of the supply; and
  4. in absence of such places, the location of the usual place of residence of the recipient;

IGST Section 2 (15)

“location of the supplier of services” means, —

(a) where a supply is made from a place of business for which the registration has been obtained, the location of such place of business;
(b) where a supply is made from a place other than the place of business for which registration has been obtained (a fixed establishment elsewhere), the location of such fixed establishment;
(c) where a supply is made from more than one establishment, whether the place of business or fixed establishment, the location of the establishment most directly concerned with the provisions of the supply; and
(d) in absence of such places, the location of the usual place of residence of the supplier;

IGST Section 2 (16)

“non-taxable online recipient” means any Government, local authority, governmental authority, an individual or any other person not registered and receiving online information and database access or retrieval services in relation to any purpose other than commerce, industry or any other business or profession, located in taxable territory.

 Explanation: For the purposes of this clause, the expression “governmental authority” means an authority or a board or any other body, –

(i) set up by an Act of Parliament or a State Legislature; or
(ii) established by any Government,

With ninety per cent. or more participation by way of equity or control, to carry out any function entrusted [2][to a Panchayat under article 243G or] to a municipality under article 243W of the Constitution

IGST Section 2 (17)

“online information and database access or retrieval services” means services whose delivery is mediated by information technology over the internet or an electronic network and the nature of which renders their supply essentially automated and involving minimal human intervention and impossible to ensure in the absence of information technology and includes electronic services such as, –

(i) advertising on the internet;
(ii) providing cloud services;
(iii) provision of e-books, movie, music, software and other intangibles through telecommunication networks or internet;
(iv) providing data or information, retrievable or otherwise, to any person in electronic form through a computer network;
(v) online supplies of digital content (movies, television shows, music and the like);
(vi) digital data storage; and
(vii) online gaming;

IGST Section 2 (18)

“output tax” in relation to a taxable person, means the tax chargeable under this Act on taxable supply of goods or services or both made by him or by his agent but excludes tax payable by him on reverse charge basis;

IGST Section 2 (19)

“Special Economic Zone” shall have the same meaning as assigned to it in clause (za) of section 2 of the Special Economic Zones Act, 2005;

IGST Section 2 (20)

“Special Economic Zone developer” shall have the same meaning as assigned to it in clause (g) of section 2 of the Special Economic Zones Act, 2005 and includes an Authority as defined in clause (d) and a Co-Developer as defined in clause (f) of section 2 of the said Act.

IGST Section 2 (21)

“Supply” shall have the same meaning as assigned to it in section 7 of the Central Goods and Services Tax Act;

IGST Section 2 (22)

“taxable territory” means the territory to which the provisions of this Act apply;

IGST Section 2 (23)

“zero-rated supply” shall have the meaning assigned to it in section 16;

IGST Section 2 (24)

Words and expressions used and not defined in this Act but defined in the Central Goods and Services Tax Act, the Union Territory Goods and Services Tax Act and the Goods and Services Tax (Compensation to States) Act shall have the same meaning as assigned to them in those Acts;

IGST Section 2 (25)

any reference in this Act to a law which is not in force in the State of Jammu and Kashmir, shall, in relation to that State be construed as a reference to the corresponding law, if any, in force in that State. 


[1] Inserted by the Integrated Goods and Services Tax (Amendment) Act, 2018 – Date of Amendment : 29-08-2018, Effective from : 29-08-2018, Retrospective Effect : No

[2] Inserted by the Integrated Goods and Services Tax (Amendment) Act, 2018 – Date of Amendment : 29-08-2018, Effective from : 29-08-2018, Retrospective Effect : No

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