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“business” includes–
(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 incidental 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 ; and
(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;Excise / Service tax laws do not define the term ‘business’. However, it is defined under the CST Act / State VAT laws. The definition in the GST law is a modified version of the definition under CST / VAT laws, in as much as the scope is substantially expanded to include among others wager, profession and vocation. This definition is very wide and covers all the transactions that are currently subjected to various taxes that are being subsumed in the GST Laws.
This definition assumes significance as the proposed levy is on supplies undertaken in the course or furtherance of business. The definition may be understood in two parts, namely:
(a) General activity – trade, commerce, etc., including incidental activities whether or not there is volume, frequency, continuity or regularity of such transactions. Principle of ejusdem generis provides that similar activity would be determined by the previous enumerated ones.
(b) Specific activity – acquisition of goods including capital goods, supply by association/ club, admission of persons to a premises and services by a race club.
The following aspects need to be noted:
• ‘Wager’ is also included in the definition of business to impose GST on betting
transactions;
• Educational services would be covered under profession or business;
• Charitable or religious activities are not specifically covered;
• Clause (g) may require understanding of employment as differentiated from profession. For instance, if a CA in practice provides CFO or Independent Director services, the service Provided by him may be treated as ‘business’ and not ‘employment’.
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