Taxability of shareholding: mere holding of subsidiary shares is not a supply under GST unless a taxable supply exists. Securities, including shares, are neither goods nor services under GST, and mere purchase, sale or holding of shares does not constitute a supply. The SAC classification for holding companies does not automatically create a taxable service; GST applies only if an activity meets the statutory definition of supply. Therefore, a holding company merely holding equity in a subsidiary is not, by itself, providing a supply of services liable to 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 shareholding: mere holding of subsidiary shares is not a supply under GST unless a taxable supply exists.
Securities, including shares, are neither goods nor services under GST, and mere purchase, sale or holding of shares does not constitute a supply. The SAC classification for holding companies does not automatically create a taxable service; GST applies only if an activity meets the statutory definition of supply. Therefore, a holding company merely holding equity in a subsidiary is not, by itself, providing a supply of services liable to GST.
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