Meaning of course or furtherance of business
Query (Issue) Started By: – deepak gulati Dated:- 13-12-2018 Last Reply Date:- 14-12-2018 Goods and Services Tax – GST
Got 3 Replies
GST
Dear All,
As per sec. 7 of CGST Act, supply includes all forms of supply of goods or services, etc. made for consideration by a person in the course or furtherance of business.
I was wondering what all will be included in these words "course or furtherance of business".
For example:-
1) A salaried employee selling his old car amounting to ₹ 30 lakhs
2) Does transfer of development rights (for collaboration) by a person into job (not in construction profession) amounting to ₹ 40 Lakhs leads to business transaction under GST
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a business could constitute a supply under GST law.
Q10. An individual buys a car for personal use and after a year sells it to a car dealer. Will the transaction be a supply in terms of CGST/SGST Act? Give reasons for the answer.
Ans. No, because supply is not made by the individual in the course or furtherance of business. Further, no input tax credit was admissible on such car at the time of its acquisition as it was meant for non-business use.
If sale of used car is chargeable to tax, it must be covered under Section 7(l)(a). As seen above only sale made in the course or furtherance of business is covered. The definition of 'business' is given above. As selling used car is not the business of the supplier, the said transactio
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