Page 110 - GSTL_30th April 2020_Vol 35_Part 5

596 GST LAW TIMES [ Vol. 35
and GMOPFT Funds are not in the course of business. The term “business” has
been defined under Section 2(17) of the GST Act, 2017 as under :
“Business” includes -
(a) any trade, commerce, profession, vocation, adventure, wager
or any other similar activity, whether or not it is for pecuniary
benefit;
(b) any activity or transaction in connection with or incidental or
ancillary to sub-clause (a);
(c) an activity or transaction in the nature of sub-clause (a),
whether or not there is volume, frequency, continuity or regu-
larity of such transaction;
(d) supply or acquisition of goods including capital goods and
services in connection with commencement or closure of busi-
ness;
(e) provision by a club, association, society, or any such body (for
a subscription or any other consideration) of the facilities or
benefits to its members;
(f) admission, for a consideration, of persons to any premises,
(g) services supplied by a person as the holder of an office which
has been accepted by him in the course or furtherance of his
trade, profession or vocation;
(h) services provided by a race club by way of totalisator or a li-
cense to book maker in such club; and
(i) any activity or transaction undertaken by the Central Gov-
ernment, a State Government or any local authority in which
they are engaged as public authorities;
8.3 As already discussed M/s. Cosme Costa are engaged in mining and
extraction of iron ore in Goa. Thus the activities of M/s. Cosme Costa, squarely
fall under the definition of business as stipulated above. For this mining activity,
they are also duty bound under Section 9B and 9C of the Mines and Minerals
(Development & Regulation) Act, 1957 for contribution of 30% of royalty to Dis-
trict Mineral Foundation, DMF (Constituted on State level), 10% of sale proceeds
to Goa Mineral Ore Permanent Fund Trust (GMOPFT) and 2% of Royalty to Na-
tional Mineral Exploration Trust (NMET). These contributions to the said trusts
are on account of their mining operations being carried out. This mining gets
covered under “any other similar activity, whether or not it is for a pecuniary
benefit” as specified under (a) above as also under the activity for furtherance of
their trade specified under (g) above. There is no ambiguity that M/s. Cosme
Costa pays royalty for its business of iron ore extraction and also pays to the said
trusts i.e. DMF, GMOPFT and NMET in the course of furtherance of their busi-
ness only. By no stretch of imagination, the contributions paid the said trusts can
be treated as donation. In case of failure to contribute to the above trusts, the
business/rights of iron ore extraction would legally get hampered and terminat-
ed. Whereas, donations are always of voluntary nature here in the instant case
there is a compulsion to make payment to the said trusts in proportion to the
amount of royalty and sale proceeds. Thus there hardly remains any doubt that
the contributions paid by M/s. Cosme Costa to the said trusts are amounts being
paid in the course of furtherance of their business activities only.
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