Holding of shares not a taxable supply - mere shareholding in a subsidiary does not attract GST. Securities, including shares, are neither goods nor services; mere holding, purchase or sale of shares by a holding company does not, by itself, constitute a supply. A classificatory service code for holding companies is not conclusive; GST applies only if there is a supply as defined by law. Therefore, holding shares in a subsidiary cannot be treated as a supply of services by the holding company to the subsidiary and is not taxable. The CBIC clarification is applied mutatis mutandis under the Goa GST Act and stakeholders should publicize and report implementation difficulties.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Holding of shares not a taxable supply - mere shareholding in a subsidiary does not attract GST.
Securities, including shares, are neither goods nor services; mere holding, purchase or sale of shares by a holding company does not, by itself, constitute a supply. A classificatory service code for holding companies is not conclusive; GST applies only if there is a supply as defined by law. Therefore, holding shares in a subsidiary cannot be treated as a supply of services by the holding company to the subsidiary and is not taxable. The CBIC clarification is applied mutatis mutandis under the Goa GST Act and stakeholders should publicize and report implementation difficulties.
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