Taxability of shareholding: mere holding of subsidiary shares is not a supply of services under GST absent an actual supply. Holding of shares in a subsidiary by a parent company does not, by itself, constitute a taxable supply of services under GST because securities are not goods or services and purchase or sale of shares alone does not amount to supply; a taxable service requires an actual supply as defined by GST law and a service classification code alone cannot convert mere shareholding into a service.
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 shareholding: mere holding of subsidiary shares is not a supply of services under GST absent an actual supply.
Holding of shares in a subsidiary by a parent company does not, by itself, constitute a taxable supply of services under GST because securities are not goods or services and purchase or sale of shares alone does not amount to supply; a taxable service requires an actual supply as defined by GST law and a service classification code alone cannot convert mere shareholding into a service.
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