Business Entity Under Gst

Compulsory registration under sec 24 7 leave a reply.

Business entity under gst. Even the place of business is very important for registration purposes. Commonly used goods and services at 5 standard goods and services fall under 1st slab at 12 standard goods and services fall under 2nd slab at 18 and special category of goods and services. So the rate of gst payable on services provided by an arbitral tribunal to a business entity with a turnover up to rupees twenty lakh is nil rate.

Definition business entity per gst income tax goods and services tax gst service tax central excise custom wealth tax foreign exchange management fema delhi. Any activity carried out by the entity in the course or furtherance of business is included in the ambit of business definition and hence will be considered as supply under gst. Business entity means any person ordinarily carrying out any activity relating to industry commerce or any other business or profession.

Earlier business entity was defined in section 65 19b as an inclusive definition to include an association of persons body of individuals company or firm but did not include an individual. The legal services which includes representational services provided by advocates are also under reverse charge it added. Advocate service received by unregistered business entity will reverse charge apply to this business entity gst.

Please login to post replies. Your are not logged in. Not only the definition of supply but the cenvat credit provisions all mandate that the activities undertaken by the taxable person should be in the course or furtherance of business.

The definition of business in section 2 of the act inter alia includes profession vocation. 27 june 2012 dear expert as per the new regime what would be the definition of the term business entity. Purpose of the phrase in the course or furtherance of business under gst.

As per education guide on cbec website the term business entity includes proprietors individuals but as per the definition given in section 65 b19 of the finance act 1994 the term business entity doesnt cover individuals. The services provided by an individual advocate including a senior advocate and a firm of advocates are liable for payment of gst under reverse charge by the business entity it said. Further one must check for the taxability of supply and exemptions.