Chapter I - Preliminary
Section 2
Section 2: Definitions
Section 2 supplies the meanings used throughout the IGST Act. Export and import of services, supplier and recipient locations, intermediary status and the amended OIDAR definitions are especially important for cross-border transactions.
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Need advice on Section 2?
This article is for general information. Refer to the Integrated Goods and Services Tax Act, 2017 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Introduction
The definitions apply unless the context otherwise requires. This guide highlights frequently used terms and points to the operative statutory clauses; the full section contains further definitions and cross-references.
For a live transaction, read a definition together with the charging and place-of-supply provisions rather than assuming an invoice label decides the result.
Key takeaways
Export of services has five conditions
The supplier must be in India, recipient outside India, place of supply outside India, prescribed payment condition met, and the two must not merely be establishments of a distinct person under Section 8's explanation.
Import of services has three conditions
The supplier is outside India, the recipient is in India and the place of supply is in India. Section 2(11) supplies this definition; tax liability then requires the operative levy provisions.
Intermediary excludes own-account supply
An intermediary arranges or facilitates a supply between other persons; someone supplying the relevant goods, services or securities on its own account is excluded by Section 2(13).
OIDAR language changed in 2023
Section 2(16) now covers an unregistered recipient of OIDAR in the taxable territory, while Section 2(17) no longer contains the old 'essentially automated/minimal human intervention' phrase.
Export and import of services
Section 2(6) defines export of services through five cumulative tests: Indian supplier location, overseas recipient location, overseas place of supply, payment in convertible foreign exchange or Indian rupees where the RBI permits, and no mere distinct-establishment relationship under the Section 8 explanation.
Section 2(11) defines import of services through overseas supplier location, Indian recipient location and Indian place of supply. These definitions do not replace the separate tax and zero-rating rules.
Locating the supplier and recipient
Sections 2(14) and 2(15) use a sequence of registered place of business, relevant fixed establishment, the establishment most directly concerned where more than one is involved, and usual residence if no such place applies.
For cross-border services, retain contracts, registration and establishment records rather than relying solely on the customer's billing country.
Intermediary and own-account supply
Section 2(13) covers a broker, agent or other person arranging or facilitating a supply of goods, services or securities between two or more persons, while excluding a person supplying them on its own account.
Intermediary classification is a separate question from its current place of supply. Finance Act 2026 omitted the special supplier-location clause in Section 13(8)(b); the amended Section 13 analysis still must be completed.
Current digital-service terms
The 2023 amendment to Section 2(16) defines a non-taxable online recipient as an unregistered person receiving OIDAR in the taxable territory, including a person registered solely under CGST Section 24(vi).
Section 2(17) covers technology-mediated online/electronic services whose supply cannot be ensured without that technology and gives examples. The 2023 amendment removed the earlier 'essentially automated and involving minimal human intervention' phrase. Online money gaming is excluded from its listed online-gaming example and is addressed separately under Section 14A.
Practical checklist
Do
- Map the transaction to the exact numbered definition before choosing a tax treatment.
- For an export claim, document all five Section 2(6) conditions, including payment and distinct-establishment status.
- For digital supplies, use the amended 2023 wording of Sections 2(16) and 2(17).
- Then test place of supply under Section 12 or 13 and zero rating under Section 16 where relevant.
Frequently asked questions
Is a foreign customer enough to make a service an export?
No. Section 2(6) requires five conditions, including an overseas place of supply, payment condition and distinct-establishment test.
Does the old minimal-human-intervention OIDAR test still apply?
No. That phrase was omitted from Section 2(17) by the 2023 amendment effective 1 October 2023.
Need help applying this provision to your situation?
Contact BizeneedLast updated 9 October 2026