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Non-taxable online recipient: section 2 of the IGST Act, 2017

From the IndiaAuditLens Law Library

GST›IGST Act, 2017›Section 2, definitions

A non-taxable online recipient is an unregistered person located in the taxable territory who receives online information and database access or retrieval services. The Explanation widens “unregistered person” to include a person registered solely under the specified CGST registration clause. The recipient’s registration basis, service received and location therefore operate together in this definition.[1]

Text

The text below is these clauses of the section as served by the CBIC tax information portal on 12 August 2021, with the portal's own amendment footnote markers (shown as small numerals before a bracket) and its footnotes.[1] The Act as published in the Gazette of India is the legal source.

Clause 2(16), verbatim (show)

2[(16) "non-taxable online recipient" means any unregistered person receiving online information and database access or retrieval services located in taxable territory.

Explanation.—For the purposes of this clause, the expression "unregistered person" includes a person registered solely in terms of clause (vi) of section 24 of the Central Goods and Services Tax Act, 2017]

2. Substituted by s. 160 of The Finance (No. 8) Act, 2023 (No. 08 of 2023) - Brought into force w.e.f. 01st October, 2023 vide Notification No. 28/2023-C.T., dated 31st July, 2023.

2(16)non-taxable online recipient

"non-taxable online recipient" means any unregistered person receiving online information and database access or retrieval services located in taxable territory. Explanation.—For the purposes of this clause, the expression "unregistered person" includes a person registered solely in terms of clause (vi) of section 24 of the Central Goods and Services Tax Act, 2017Section 2(16)

The person must receive the specified online services and be located in the taxable territory. “Unregistered person” includes a person registered solely under CGST section 24(vi).

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Amendment history

The CBIC text carries 1 footnote. The table gives each in the source's own terms. Effective dates are as the footnotes state them.[1]

Amendments to section 2 as footnoted in the CBIC text
NoteChange
2Substituted by s. 160 of The Finance (No. 8) Act, 2023 (No. 08 of 2023) - Brought into force w.e.f. 01st October, 2023 vide Notification No. 28/2023-C.T., dated 31st July, 2023.[2][3]

See also

References

  1. Central Board of Indirect Taxes and Customs. "Section 2. Non-taxable online recipient". Integrated Goods and Services Tax Act, 2017, CBIC tax information portal, with amendment footnotes 1 to 1. Retrieved 12 August 2021.
  2. The Finance (No. 8) Act, 2023. Cited in CBIC footnote 2.
  3. Notification No. 28/2023-Central Tax, dated 31 July 2023: Seeks to notify the provisions of sections 137 to 162 of the Finance Act, 2023 (8 of 2023). Cited in CBIC footnote 2.

External links