# Three Foundational Definitions

Every GST problem identifies (a) who is the supplier, (b) who is the recipient, and (c) whether each is a person. These three definitions sit at the very start of Chapter 2.

## 1. Supplier — Section 2(105)

Default meaning: The person supplying the goods/services/both — and includes an agent acting on his behalf.

### Special rule for specified actionable claims

For specified actionable claims (e.g., betting, online gaming, lottery, casinos), the supplier is deemed to be:

The person who organises or arranges (directly or indirectly) the supply, including one who owns, operates or manages a digital/electronic platform for such supply;
Whether such actionable claims are supplied by him or through him;
Whether consideration in money or money's worth (including virtual digital assets) is paid/conveyed to him, through him, or placed at his disposal in any manner;
All provisions of the Act apply as if this person is the supplier liable to pay tax.

> This is the legislative basis for taxing online gaming/betting platforms (e.g., fantasy sports apps) as suppliers — even though the bettor and counterparty are private individuals.

## 2. Recipient — Section 2(93)

Three-fold definition:

Scenario	Recipient is
(a) Consideration is payable	The person liable to pay the consideration
(b) No consideration + supply of goods	The person to whom the goods are delivered or made available, or to whom possession or use of the goods is given/made available
(c) No consideration + supply of services	The person to whom the service is rendered

> 'Recipient' also includes a person to whom the supply is made — including an agent acting on his behalf.

### Why three limbs?

In GST, sometimes the payer and the beneficiary differ (e.g., free samples, gifts, services rendered to a third party for the contracting party). The three limbs ensure every supply has a recipient identified.

## 3. Person — Section 2(84)

'Person' includes:

a. An individual

b. A Hindu Undivided Family (HUF)

c. A company

d. A firm

e. A trust

f. A Limited Liability Partnership (LLP)

g. A local authority

h. An Association of Persons (AOP) or Body of Individuals (BOI), whether incorporated or not, in India or outside India

i. Any corporation established by/under any Central, State or Provincial Act, or a Government company as defined in Section 2(45) of the Companies Act, 2013

j. Any body corporate incorporated under the laws of a country outside India

> (The list continues in the Act with central/state government, society, etc. — examiners may quote the full list.)

## Why this definition matters

GST registration is based on aggregate turnover per person — so what counts as a 'person' decides whether you need separate registrations.
Related person rules (Schedule I) depend on the concept of person.
Distinct person concept (a single PAN's GSTINs in different States) builds on this base.

Worked example

### Example 1

Recipient identification — no consideration: A company gives a free laptop to a journalist for review. Who is the recipient? Answer: No consideration is payable. The supply is of goods. Per Section 2(93)(b), the recipient is the person to whom the goods are delivered or made available — i.e., the journalist.

### Example 2

Supplier — online gaming: A platform 'PlayBet' hosts users who bet against one another. Who is the supplier of the actionable claim? Answer: Per Section 2(105) (special rule), the platform itself is deemed the supplier, regardless of where the money flows — it organises/arranges the supply.

### Example 3

Person — foreign LLC: A US-incorporated body corporate raises an invoice on an Indian company. Is the US LLC a 'person'? Answer: Yes — Section 2(84)(j) covers any body corporate incorporated outside India.

⚠️ Common exam mistakes

Saying 'recipient = buyer' — recipient is defined more broadly (includes the agent, and in no-consideration cases, the person to whom goods/services are delivered/rendered).
Forgetting that agents are included BOTH in the definition of supplier AND recipient.
Missing the online gaming/betting limb of supplier — platforms are deemed suppliers even when they only host the activity.
Excluding foreign entities from 'person' — Section 2(84) explicitly covers foreign body corporates and AOPs whether in or outside India.
Treating a HUF and the karta as the same 'person' — they are distinct persons under GST.

Bare-Act text Sections 2(84), 2(93), 2(105) · CGST Act, 2017 · click to expand

(105) 'supplier' in relation to any goods or services or both, shall mean the person supplying the said goods or services or both and shall include an agent acting as such on behalf of such supplier in relation to the goods or services or both supplied. (93) 'recipient' of supply of goods or services or both, means— (a) where a consideration is payable for the supply of goods or services or both, the person who is liable to pay that consideration; (b) where no consideration is payable for the supply of goods, the person to whom the goods are delivered or made available, or to whom possession or use of the goods is given or made available; and (c) where no consideration is payable for the supply of a service, the person to whom the service is rendered, and any reference to a person to whom a supply is made shall be construed as a reference to the recipient of the supply and shall include an agent acting as such on behalf of the recipient in relation to the goods or services or both supplied.

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Key definitions — Supplier, Recipient and Person

Worked example

⚠️ Common exam mistakes