Page 30 - GSTL_27th August 2020_Vol 39_Part 4

J86 GST LAW TIMES [ Vol. 39
From above decisions, it is clear that functions performed by Registrar of Compa-
nies for which fee is charged from companies/LLPs are nothing but statutory func-
tions undertaken by the Central Government in which it is engaged as public au-
thorities.
Taxability under GST regime
Under the GST regime, ‘supply’ is the touchstone for charging tax and
Section 7(1)(a) lays down the scope of supply which reads as follows :
7. (1) For the purposes of this Act, the expression “supply” includes -
(a) all forms of supply of goods or services or both such as sale,
transfer, barter, exchange, license, rental, lease or disposal made or
agreed to be made for a consideration by a person in the course or
furtherance of business;
The definition of ‘services’ is also all encompassing and includes everything other
than goods, money and securities. Therefore, activities/functions performed by
Government falls within the ambit of ‘service’. In this context, it is interesting to
note the definition of ‘business’ under GST law. Section 2(17) of the CGST Act de-
fines ‘business’ to include :
(a) any trade, commerce, manufacture, profession, vocation, adventure,
wager or any other similar activity, whether or not it is for a pecuni-
ary benefit;
(b) any activity or transaction in connection with or incidental or ancil-
lary to sub-clause (a);
(c) any activity or transaction in the nature of sub-clause (a), whether
or not there is volume, frequency, continuity or regularity of such
transaction;
(d) supply or acquisition of goods including capital goods and services
in connection with commencement or closure of business;
(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, pro-
fession or vocation;
(h) services provided by a race club by way of totalisator or a licence to
book maker in such club; and
(i) any activity or transaction undertaken by the Central Government, a State
Government or any local authority in which they are engaged as public au-
thorities;
Thus, according to clause (i), any activity or transaction undertaken by the Central
or State Government or any local authority, in which they are engaged as public
authorities, is a business. According to the author, Legislature ought not to have
inserted clause (i) in Section 2(17) as it bring within the ambit of definition of
“business”, those activities or transactions which are performed by the Central or
State Government or local authorities in which they are engaged as public authori-
ties. As a consequence of clause (i) above, even the statutory/sovereign functions

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