Section 2(18) of Rajasthan GST Act 2017: Meaning of “business vertical”

Definition of the term “business vertical” under Section 2(18) of the Rajasthan GST Act, 2017

As per Section 2(18) of the Rajasthan GST Act, unless the context requires otherwise, 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.- For the purposes of this clause, 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.

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