Definition of Business
By: – Pradeep Jain
Goods and Services Tax – GST
Dated:- 16-1-2017<\/p>\n
DAILY DOSE OF GST UPDATE BY CA PRADEEP JAIN
\nContinuing with the analysis of the revised GST law, we shall today discuss changes bought in the definitions as provided in the law:
\n1. 2(17) Business: the new definition reads as follows:
\n“Business includes –
\n(a) Any trade, commerce, manufacture, profession, vocation or any other similar activity, whether or not it is for a pecuniary benefit;
\n(b) Any activity or transaction in connection with or incidental or ancillary to (a) above;
\n(c) Any activity or transaction in the nature of (a) above, whether or not there is volume, frequency, continuity or regularity of such transaction;
\n(d) Su<\/p>\n
= = = = = = = =<\/p>\n
Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n n given in revised GST law is compared with old definition given in model GST law, it can be noted that a new explanation is added in the clause aiming to cover any activity or transaction undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities in the definition of business. This has been added to make it amply clear that the functions and activities undertaken by the government as public authorities shall be treated as business activities. Treating them as business has a large impact to the extent GST is considered. Not only the definition of supply but the cenvat credit provisions, all mandate that the activities undertaken by the taxable person should be in the cours<\/p>\n = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n n the schedule IV, all other activities shall be termed as business transactions and will be covered under GST. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" Definition of BusinessBy: – Pradeep JainGoods and Services Tax – GSTDated:- 16-1-2017 DAILY DOSE OF GST UPDATE BY CA PRADEEP JAIN Continuing with the analysis of the revised GST law, we shall today discuss changes bought in the definitions as provided in the law: 1. 2(17) Business: the new definition reads as follows: “Business includes … Continue reading “Definition of Business”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-2112","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/2112","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2112"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/2112\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2112"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2112"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2112"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\nEven in the present system of service tax also, there is reverse charge mechanism on all services provided by Government except the services mentioned in schedule IV. This implies that the same system will continue in the proposed GST also and it might be possible that the reverse charge will be applicable on the same.
\nMoreover, we have seen that there is controversy of service tax liability on club and association. On the basis of principal of mutuality, it was held that club and its members are one and same person and hence the service tax is not applicable on the same. It was held by Bihar High Court in case of Ranchi club an<\/p>\n
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