Section 2(16) of IGST Act: Meaning of “Non-taxable Online Recipient”
As per Section 2(16) of the Integrated Goods and Services Tax (IGST) Act, 2017, unless the context otherwise requires, the term “non-taxable online recipient” has been defined, as under:
Section 2(16) of IGST Act: Meaning of “Non-taxable Online Recipient” (CHAPTER I – PRELIMINARY)
“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: 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 [to a Panchayat under article 243G or]$1 to a municipality under article 243W of the Constitution.
$1. Words, figures and letter inserted vide IGST (Amendment) Act, 2018, however commencement date is yet to be notified. Thus the Function entrusted to Panchayat under article 243G also included in the definition.
The Integrated Goods and Services Tax (IGST) Act, 2017 was notified by Govt. on 12 April, 2017 and CBIC has notified the commencement date for various Sections/ Provisions thereof from time to time. Subsequently, Govt. has notified the Integrated Goods and Services Tax (IGST) (Amendment) Act, 2018 on 30 Aug. 2018. However, commencement date of amended provisions of various Sections is to be separately notified by CBIC, except where specifically mentioned in the IGST Amendment Act, 2018 itself.