Taxability of shareholdings: holding shares in a subsidiary is not a taxable supply absent a supply under GST. Securities, including shares, are neither goods nor services under the KGST Act; mere holding, purchase or sale of subsidiary shares by a holding company is not a supply. A SAC entry for holding company services does not itself create a taxable supply-GST applies only if the holding company's activity qualifies as a supply under the statutory definition. Therefore passive holding of subsidiary share capital is not taxable under GST.
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.
Taxability of shareholdings: holding shares in a subsidiary is not a taxable supply absent a supply under GST.
Securities, including shares, are neither goods nor services under the KGST Act; mere holding, purchase or sale of subsidiary shares by a holding company is not a supply. A SAC entry for holding company services does not itself create a taxable supply-GST applies only if the holding company's activity qualifies as a supply under the statutory definition. Therefore passive holding of subsidiary share capital is not taxable under GST.
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