Exemption for services from non-taxable territory - specified recipients exempt; business use attracts reverse charge. Exemption covers services from providers in a non-taxable territory when received by Government, local authority or governmental authority for non-commercial purposes; by entities registered under section 12AA for specified charitable activities; or by persons located in a non-taxable territory. Definitions and amendments narrow charitable activities and define governmental and local authorities. Guidance confirms exemption where both provider and receiver are in a non-taxable territory, while use for business triggers service tax under the reverse charge mechanism unless exempted.