GST Definitions Part 1

Summary:

The GST Definitions note explains key terms such as Aggregate Turnover, Business, Business Vertical, Composite Supply, and Mixed Supply. The main challenge for Composite and Mixed Supply is determining applicable GST rates due to varying tax rates on supplied goods or services.

Excerpt:

GST Definitions Part 1

Aggregate Turnover [Section 2(6)]

This means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on a reverse charge basis), exempt supplies, exports of goods or services, or both, and inter-State supplies of persons having the same Permanent Account Number, to be computed on all India basis but excludes central tax, State tax, Union territory tax, integrated tax, and cess.

In nutshell:

• ∑(taxable supplies + exempt supplies+ exports of goods or services or both+ inter-State supplies of persons having the same PAN)
• Turnover on all India Bais
• Excludes any type of tax

Business – Sec 2(17)

“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 (a) above;

(c) any activity or transaction in the nature of(a) above, whether or not there is volume, frequency, continuity, or regularity of such transaction;

(d) supply or acquisition of goods including capital assets and services in connection with the 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, as the case may be;

(f) admission, for a consideration, of persons to any premises; and

(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 or a license 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.