Introduction:
The GST Act came in force from 1st July, 2017. There were many interpretation issues with respect to the definitions, glossary and terms use in the law. Since, such definitions were adopted from various legacy laws in India prior to GST; such as Service Tax, State VAT, Central Excise Act, Luxury Tax, Entertainment Tax, etc. it was difficult to make applicable one definition for different sectors. Hence, some modifications from existing definitions were made. Therefore, it was important to established a nexus of the terms used in the GST definitions. The definition discussed here is“Input Service”.
So what do you mean by “Input Service”?
Section 2(60) of CGST Act, 2017 – “input service” means any service used or intended to be used by a supplier in the course or furtherance of business;
Conclusion:
Hence it is understood that any service used or intended to be used by a supplier in the course or furtherance of business; is known as “Input Service”.