Sec 2(60) – Input Service

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Sec 2(60) – Input Service 2017-04-14T03:38:54+00:00
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    #1294 |

    “input service” means any service used or intended to be used by a supplier in the course or furtherance of business;

    Priya MadrechaPriya Madrecha
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    Any services that is used or intended to be used by a supplier of goods or services, or both, in the course or furtherance of business would be treated as “input service”.
    The meaning of the term “service” under the GST law is very vast to include everything that is not goods, barring securities, and monies that are do not amount to activity relating to the use of money or conversion of money. Therefore, anything received by a person who is a supplier, which is not goods, and is neither securities nor money as such, would be treated as ‘input service’, so long as it is used or meant to be used in the course or furtherance of business.
    Unlike the existing law, there is no requirement for it to have direct nexus with the outward supply. In other words, the service received may not be directly linked to the outward supply of the supplier receiving the service, and the outward supply may be goods or services. Regardless of the outward supply, the service received would qualify as “input service” to him, when the same is used in the course or furtherance of business. Therefore, a retailer who receives housekeeping services of the business premised will be eligible to treat the services as ‘input services’ given that such services are received in due course of business.
    Further, while the existing law required that the services must be received only up to the place of removal for them to qualify as “input services”, there is no such condition attached to the term under GST, where such services are received in the course or furtherance of business. This means that goods transportation services availed by the supplier, would qualify as input services to him, even if the transportation is up to the place of delivery to the recipient, say the factory of the recipient, although the transportation does not add value to the goods itself, but adds value to the supply made by him.

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