Taxability of holding company shares: holding shares in a subsidiary is not a GST supply absent an actual supply. Securities, including shares, are neither goods nor services under the RGST Act; mere holding, purchase or sale of shares by a holding company in its subsidiary does not constitute a supply. SAC classification (e.g., services by holding companies) does not alone create a taxable service; a taxable service requires an actual supply as defined in the RGST Act, and therefore holding shares per se cannot be taxed 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 holding company shares: holding shares in a subsidiary is not a GST supply absent an actual supply.
Securities, including shares, are neither goods nor services under the RGST Act; mere holding, purchase or sale of shares by a holding company in its subsidiary does not constitute a supply. SAC classification (e.g., services by holding companies) does not alone create a taxable service; a taxable service requires an actual supply as defined in the RGST Act, and therefore holding shares per se cannot be taxed under GST.
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