Securities are neither goods nor services hence should they not fall under non gst supplies, non gst supply is not defined in gst law
however for purpose of gst itc reversal in rules 1% of value of securities will be treated as exempt supply
Issue: Should sale of securities be shown under non gst supply or only 1% of sale value to be shown under exempt supply
Debate on GST Classification: Are Securities a Non-GST or Exempt Supply? Impact on GSTR-1 and 3B Returns. A discussion on whether the sale of securities should be classified as non-GST supply or exempt supply under GST law. Securities are neither goods nor services and thus fall outside the GST scope. For GST input tax credit reversal, 1% of the securities' value is treated as exempt supply. The debate involves how securities should be disclosed in GSTR-1 and 3B returns, and whether interest earned on fixed deposits or bank accounts is considered nil-rated or exempt supply. The classification of securities as a supply is questioned since they do not fit the traditional definitions of goods or services. (AI Summary)
TaxTMI 
TaxTMI 
