No definition or test as to whether the activity is in the course or furtherance of business has been specified under the MGL. However, the following business test is normally applied to arrive at a conclusion whether a supply has been made in the course or furtherance of business:
- Is the activity, a serious undertaking earnestly pursued?
- Is the activity is pursued with reasonable or recognisable continuity?
- Is the activity conducted in a regular manner based on sound and recognised business principles?
- Is the activity predominantly concerned with the making of taxable supply for consideration/profit motive?
The test may ensure that occasional supplies, even if made for consideration, will not be subjected to GST.