There has been much debate about this, and after listening to everyone's comments, we have decided to make a clear rule about standing inside or on the baseline for service returns.
With immediate effect, you must stand behind the baseline while returning serves - and your return of serve must not result in your character stepping on, or inside the baseline.
The ease and effectiveness of returning from inside the baseline makes it an obvious glitch in the game, and taking advantage of any glitch is considered cheesy and is not allowed in ITST matches.
The ITST Management feels this rule will help preserve the realistic nature of the game, and eliminate much of the confusion over what tactics can be used in our tournaments.