Taxability of holding company shares: mere holding of subsidiary shares is not a taxable supply under GST. Holding shares in a subsidiary by a parent company is not a supply under GST merely by virtue of a SAC entry; securities are neither goods nor services and purchase, sale or holding of shares does not constitute a taxable supply unless the statutory definition of supply is otherwise satisfied. The Board's clarification requires uniform application by field formations and directs publicity to trade and reporting of implementation difficulties.
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: mere holding of subsidiary shares is not a taxable supply under GST.
Holding shares in a subsidiary by a parent company is not a supply under GST merely by virtue of a SAC entry; securities are neither goods nor services and purchase, sale or holding of shares does not constitute a taxable supply unless the statutory definition of supply is otherwise satisfied. The Board's clarification requires uniform application by field formations and directs publicity to trade and reporting of implementation difficulties.
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