Section 2(17) of CGST Act: Meaning of “Business”

Section 2(17) of CGST Act: Meaning of “Business”

As per Section 2(17) of the Central Goods and Services Tax (CGST) Act, 2017, unless the context otherwise requires, the term “business” has been defined, as under:

Section 2(17) of CGST Act: Definition of “Business” (CHAPTER I – PRELIMINARY)

“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

(h) activities of a race club including by way of totalisator or a license to book maker or activities of a licensed book maker in such club; and]$1

(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.

Amendments History:

$1. Clause (h) substituted vide CGST (Amendment) Act, 2018, however commencement date is yet to be notified.

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The Central Goods and Services Tax (CGST) Act, 2017 was notified by Govt. on 12 April, 2017 and CBIC has notified the commencement date for various Sections/ Provisions thereof from time to time. Subsequently, Govt. has notified the Central Goods and Services Tax (CGST) (Amendment) Act, 2018 on 30 Aug. 2018. However, commencement date of amended provisions of various Sections is to be separately notified by CBIC, except where specifically mentioned in the CGST Amendment Act, 2018 itself.

Related Posts:

Central Goods and Services Tax (CGST) Act, 2017 (Chapter-wise/ Section-wise)

Section 2 of CGST Act, 2017: Definitions

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