Section 2(18) of CGST Act: Meaning of “Business Vertical”
As per Section 2(18) of the Central Goods and Services Tax (CGST) Act, 2017, unless the context otherwise requires, the term “business vertical” has been defined, as under:
[Section 2(18) of CGST Act: Definition of “Business Vertical” (CHAPTER I – PRELIMINARY) “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 or services which is subject to risks and returns that are different from those of the other business verticals. Explanation: Factors that should be considered in determining whether goods or services are related include– (a) the nature of the goods or services; (b) the nature of the production processes; (c) the type or class of customers for the goods or services; (d) the methods used to distribute the goods or supply of services; and (e) the nature of regulatory environment (wherever applicable), including banking, insurance, or public utilities.]$1
$1. Section 2(18) omitted vide CGST (Amendment) Act, 2018, however commencement date is yet to be notified.
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.