What is Single Business vertical under GST

Term Single Business vertical under GST

 

The details about Single Business vertical under GST are explained here. 

Single Business vertical

A Single Business vertical market is a market in which seller offer goods and services specific to an industry, trade, profession, or other group of customers with specialized needs. It is distinguished from a horizontal market, in which vendors offer a broad range of goods and services to a large group of customers with a wide range of needs, such as businesses as a whole, men, women, households, or, in the broadest horizontal market, everyone.

The activities of participants within any given vertical market are typically similar in that they aim at solving the same or similar problems. These markets are typically competitive, because of the overlapping focuses of the products and services that are provided to the customers.

The single defining characteristic of the participants in a vertical market is competition within a well-defined segment is called Single Business vertical market.

Horizontal market participants often attempt to meet enough of the different needs of vertical markets to gain a presence in the vertical market. Their similar products/services tend to be less of a fit but also less expensive than specialized, vertical participant solutions.

Vertical market software is software aimed at addressing the needs of any given business within a discernible vertical market.

Definition single Business vertical in GST:

As per Section 18 of CGST Act, 2017 “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;

The information on Single Business vertical under GST is detailed above.   Comment below your thoughts on Single Business vertical under GST.

 


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