Meaning of course or furtherance of business

[deepak gulati]

Dear All,

As per sec. 7 of CGST Act, supply includes all forms of supply of goods or services, etc. made for consideration by a person in the course or furtherance of business.

I was wondering what all will be included in these words "course or furtherance of business".

For example:-

1) A salaried employee selling his old car amounting to ₹ 30 lakhs

2) Does transfer of development rights (for collaboration) by a person into job (not in construction profession) amounting to ₹ 40 Lakhs leads to business transaction under GST or not?

AI Summary

Supply in the course or furtherance of business: personal sales excluded; fringe benefits may be deemed taxable supplies.
Section 7's "course or furtherance of business" means that supplies made to promote, develop, or incidentally support trade, commerce, manufacture, profession or vocation are taxable; government activities as public authorities are included. A private sale of a personal used car is not a supply absent business character or input tax claim. Fringe benefits and employer-provided facilities may be deemed supplies when they further the employer's business.