What is the definition of a BUSINESS and BUSINESS VERTICAL and its RELEVANCE as per GST Laws ?

A BUSINESS  is defined as any one of the following categories-

a.      any trade, commerce, manufacture, profession, vocation, adventure, wager or any other similar activity, whether or not it is for a pecuniary benefit

b.      any activity or transaction in connection with or ancillary to sub-clause (a)

c.       any activity or transaction in the nature of sub-clause (a), whether or not there is volume, frequency, continuity or regularity of such transaction

d.      supply or acquisition of goods including capital goods and services in connection with commencement or closure of business

e.      provision by a club, association, society, or any such body (for a subscription or any other consideration) of the facilities or benefits to its members

f.        admission, for a consideration, of persons to any premises

g.      services supplied by a person as the holder of an office which has been accepted by him in the course or furtherance of his trade, profession or vocation

h.      services provided by a race club by way of totalisator or a licence to book maker in such club

i.        any activity or transaction undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities

A BUSINESS VERTICAL  means a distinguishable component of an enterprise that is engaged in the supply of individual goods or services or a group of related goods / services, but which is subject to risks and returns that are different from those of the other business verticals.

For the purposes of this clause, factors that should be considered in determining whether goods or services are related include––

·         The nature of the goods or services

·         The nature of the production processes

·         The type or class of customers for the goods or services

·         The methods used to distribute the goods or supply of services

·         The nature of regulatory environment (wherever applicable), including Banking, insurance, or public utilities

 A person seeking registration under this Act shall be granted a single registration in a State or Union territory. 

If a person is having multiple business verticals in a State or Union territory,  separate registration may be granted for each business vertical ( subject to conditions). 

A person who has obtained or is required to obtain more than one registration shall be treated as distinct persons for the purposes under this Act.

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