Definition of the term “Business Vertical” under the Central Goods and Services Tax (CGST) Act, 2017
As per Section 2(18) of the Central Goods and Services Tax (CGST) Act, 2017, unless the context otherwise requires, the term “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.