Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 7-11-2017 – Meaning of Business [Section 2(17)] As per section 2(17) of the CGST Act, 2017 'business' includes – any trade, commerce, manufacture, profession, vocation adventure, wager or any other similar activity, whether or not it is for a pecuniary benefit; any activity or transaction in connection with or incidental or ancillary to (a) above; any activity or transaction in the nature of (a) above, whether or not there is volume, frequency, continuity or regularity of such transaction; supply or acquisition of goods including capital assets and services in connection with commencement or closure of business; provision by a club, association, society, or any such
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ofession, vocation, adventure or wager or other similar activities are covered. It is immaterial whether such transactions are for pecuniary benefit or not. These terms have not been defined. 'Agriculture' has not been specifically included in 'business'. Example: M X is import-export dealer, owning and maintaining a hospital for charitable purpose which is providing medical treatment to poor patients. In that case, transactions of such hospital are also covered under the scope of 'business'. In Income Tax, business has been defined to include any trade, commerce or manufacture or any adventure or concern in the nature of trade, commerce or manufacture. According to Halsbury (4th edition, Vol. 27), the word business
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as business there must be a course of dealings, either actually continued or contemplated to be continued with a profit motive, and not for sport or pleasure. Business includes: day-to-day running of the business, rationalization of business administration and modernization of machinery of business, preservation of business and protection of its assets and property from expropriation, coercive process or assertion of hostile title, payment of statutory dues and taxes imposed as pre-condition for commencement or carriage of business, things incidental to carriage of business. [Birla Cotton Spng. & Wvg. Mills Ltd v. CFT, 1967 (3) TMI 104 – CALCUTTA HIGH COURT ,, affirmed, 1971 (8) TMI 9 – SUPREME Court ]. Relevance of scope of 'busin
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