Taxability of shareholding: holding shares in a subsidiary is not a supply under GST without a section 7 supply. The Circular explains that securities, including shares, are neither goods nor services under GST definitions and that mere purchase, sale or holding of shares does not constitute a supply; therefore holding shares of a subsidiary by a parent company, by itself, cannot be treated as a supply of services and is not taxable under GST unless there is an actual supply as defined in law.
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: holding shares in a subsidiary is not a supply under GST without a section 7 supply.
The Circular explains that securities, including shares, are neither goods nor services under GST definitions and that mere purchase, sale or holding of shares does not constitute a supply; therefore holding shares of a subsidiary by a parent company, by itself, cannot be treated as a supply of services and is not taxable under GST unless there is an actual supply as defined in law.
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