Let's talk about the definition of business.
What is the definition of business?
We have read about consideration, we have read about supply.
Schedule 1 is remaining.
Let's see what is the definition of business.
What is there in business?
Trade, commerce, manufacture, even if there is no monetary
benefit.
You may not be earning money at that time, but you are
doing trade, commerce, manufacturing work.
We will cover that in the definition of business.
Is there any incidental activity?
This is the main business of your business.
What is your main business?
For example, your main business is manufacturing.
You manufacture coolers for poor people.
Are there any incidental activities?
For example, sometimes iron is left after manufacturing.
You sell that in scrap.
What you are selling in scrap, is it an incidental activity?
There is an incidental activity related to this.
And it is also possible that you may not get scrap again
and again.
Sometimes 6, sometimes 6.
Once in a year, you may get scrap once.
Its volume may not be more.
You sold scrap once or twice in a year.
Should that also be considered a business?
Yes.
Why? Because it is written.
It is written.
It is an incidental activity of the main business.
It is not the main business.
Although selling scrap is not our main business.
It is an incidental business.
Its volume is also less.
Every year, 2 or 3 times, maximum 4 times, we sell scrap.
We don't sell it every day.
But still, it will be considered as a business.
For example, there are painters.
You must have heard of M. F. Hussain.
He may make 2 or 3 paintings in a year.
If he is making 2 or 3 paintings, and there are 365 days in
a year, then he is not doing sales for 365 days.
He is making 3 paintings.
And how many days?
You sold 3 paintings in a month.
You don't have much volume of transactions in a year.
So, won't it be considered a business?
It will be considered as a business.
Even if there is no volume, even if there is no trade, even
if there is no volume, there is no problem.
Provision of facilities by the club or any association to
the members, for consideration.
For example, there are societies or RWA associations.
You must have heard of it.
It is RWA.
Resident Welfare Association.
They provide services to their members.
Sometimes, there are societies or apartments.
There, every month, maintenance fees are paid.
Maintenance fees are paid.
If there is more than a particular limit, in which a basic
exemption is given, if there is more than that, in my
maintenance, then GST provisions are applicable.
Why are they applicable?
First thing,
Supply of goods and services.
There is a society.
There is RWA.
They are providing you with lift facilities.
There will be a watchman.
There will be cleaning, gardening.
There will be gardening services.
They provide you with parking facilities.
At night, lights are installed in societies.
There are lighting facilities.
There are safety features.
After that, these services are provided.
Then, what is the consideration?
You are paying monthly maintenance charge.
That is your consideration.
Third thing,
Are these business purposes?
Yes.
Why are they business purposes?
Because it is covered in the definition of business.
What is the definition?
Provision of facilities by the association or club to the
members for a consideration.
It is covered in the definition of business.
As soon as it is covered in the definition of business,
supply will be considered.
Supply of services.
And in that case,
GST provisions will be applicable to you.
Did you see, friends?
This is the point.
Admission to any premises for consideration.
For example,
You go to a circus and you get a ticket for the circus.
For example, you have come here.
This is also a circus.
Look here.
You are seeing a lion live.
Come here.
You go to a circus.
You get a ticket for the circus.
You go to a zoo.
You get tickets for the zoo.
What is happening in those tickets?
Basically, it is giving you the right of admission.
Yes, buy this ticket from us.
Give us money.
After that, you will get a right that you can go to the
circus, the zoo, whatever the function is, you can go and
attend.
You can go there.
It will be the right of admission.
Right to admit.
You can admit yourself there.
In that case also, the money you are giving,
GST provisions will be applied to it.
Why? Because you are getting the right of admission.
It is giving you the right of supply and services.
And this is business.
Why is it business?
Because it is written here in the definition of business.
Admission for consideration.
Okay, sir?
These were the main definitions.
Let's see some more examples.
Come here.
Look here.
Read this line.
For any trade, for any commerce, or any other similar
activity, to qualify as business, its size, its volume, its
continuity, its regularity is not necessary.
It is possible that in a year, you are selling only one
Rolls Royce car.
But still, what happens?
There is a supply of goods.
Yes.
It is the same supply of goods that you are selling one
Rolls Royce car in a year.
It is the same supply of goods that Maruti cars are sold
for 365 days.
Or a motorcycle is sold.
Both are kept on the same platform, on the same footing.
There is nothing different that you are selling one Rolls
Royce car in a year.
So, you will not come under the definition of supply of
goods.
You will not come under the definition of business.
There is nothing like that.
Even that will be considered as business.
Frequency, volume, whatever it is, does not matter at all.
Come here.
Now, look at this example.
Mr. Rishabh buys a car for personal use.
Did he buy the car for business use?
For personal use.
And after a year, he sells the car to a car dealer.
Sale of car is not supply.
Because the sale he has done to the car dealer is not for
business purpose.
It is not his business.
It is not his trade, manufacture, etc.
He does not have the registration number of any business.
This is not a business.
Now, some kid will say to me,
Sir, what is this frequency, etc.
Friend, the frequency point has come when it is a business.
Is it a business to sell cars?
Is it a business to buy and sell cars?
It is not, right?
If it was, then the matter would have been different.
In this case, he bought a car for personal purpose and sold
it later.
Why GST?
If it is not a business, then why GST?
Come here.
Manikarnika sold her old gold bangle and earring to
Abhushan Jewellers.
Sale of gold jewellery by individual to the jeweller will
not constitute supply because that too is not a business.
Now, look at this.
Sundaram Acharya is a famous actor.
Basically, he is talking about Salman Khan.
Sundaram Acharya is a famous actor.
He does painting as well.
And he sells that painting.
And the money that comes from that painting goes to
Charitable Trust, Being Human.
Here, it is Kind Human.
Similarly, it is Being Human.
Now, he is making a painting.
He is not making a painting and giving it for free.
It must be auctioned regularly.
Consideration must be received.
Sale of goods is taking place.
Painting is a good.
Sale of goods is taking place.
Consideration must be received.
The money that comes from the auction must be considered.
Thirdly, what is it?
What do we have to check?
Is it a business or not?
Now, how to check?
Sir, look at its frequency.
He works less.
He makes less paintings.
No problem.
It works.
But it is a business activity.
It is a trade.
It is a commerce.
Even if the frequency is less.
No problem.
We will consider it as a business.
Ultimately, he is working for money.
Yes, it is different that he is receiving money and giving
it in charity.
But, consideration is coming.
In a way, it is a profession.
We cannot call it a profession.
But, consider it as a vocation.
We read the word above.
Either it is a profession or a vocation.
Trade, commerce, manufacture.
Or vocation.
Even if there is no volume.
Look at this.
Trade, commerce, manufacture, profession, vocation,
adventure, wager.
Or any other similar activity.
It is a vocation.
I am making it as a hobby.
But, I am selling it.
I am earning money.
We will consider it as a business activity.
Let's move ahead.
Look at the example of RWA.
RWA gives some services to the society.
It gives some services to the residents.
It takes money in return.
So, the provision of services it is giving.
And, collecting money from it.
That is a part of business.
In that case also, GST provisions are applied.
It has an exemption limit.
To the societies and apartments.
So, if you collect money from the apartments.
Then, GST provisions are applicable.
Okay friends, let's come to our next point.
What did we cover just now?
The supply, we covered the definition of supply.
What is supply?
Sale of goods, sale, barter, exchange.
And why was it done?
It was done for consideration.
What was consideration?
It can be in kind or money.
Cash or kind, both things.
We covered that.
Third, it should be for business purpose.
In the course or furtherance of business.
What is business? We covered that too.
These were the three things.
After that I told you two more things.
Apart from supply.
If you are doing import of service.
Even if it is not for business.
You are giving money for that.
You are importing services.
You are giving consideration.
May be it is not for business.
In that case also it will be considered as supply.
This is the point.
In that case also it will be considered as supply.
The connotation of supply gets expanded.
Which brings within the ambit of supply.
Import of service for a consideration.
May be it is for business.
May be it is not for business.
Look at its example.
Ramaiya has received architect services.
From architect located in New York.
Architect in New York in America.
From there he receives architect services.
Designing services in India.
He is importing services.
May be he is giving money for that.
Consideration is of $5000.
Consideration is there.
Supply of services is also there.
Import of services is there.
Whether it is for business purpose or not.
It will be considered as supply of services.
And on top of it GST provisions.
My brother, my brother, my master, my master, my god, my
guru.
Will be there.
Definitely and definitely.
Import of service is supply.
Though it is not in the course or furtherance of business.
I am taking service for my home.
Not for business.
I am not taking service for office.
But still it will be considered in the category of supply.
Friends, in today's lecture we discussed about the
definition of supply.
I got your reading done.
After reading you will get to know exactly what I wanted to
say.
So the definition of supply is covered here.
But it is not completed yet.
In this we have to discuss about schedule 1.
Till now the definition of supply has been completed.
After this the import of service was covered in the
category of supply.
We have read that.
The third one was schedule 1.
Whether it is services or supplies.
Without considering that you are doing.
So that is also considered as supply.
And on top of that GST is there.
What is that?
We will cover that in the next lecture.
Hope so today's lecture will be clear to you.
I will revise a little in the next lecture.
After that we will move to schedule 1.
Till then good night.
We will meet in the next lecture.
Thank you very much.