Non gst supply

[Madhavan iyengar]

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

AI Summary

Non-GST supply: securities treated as out of scope while rules prescribe a nominal exempt valuation for ITC reversal.
Securities are not goods or services and thus are non-GST (out of scope) supplies; nevertheless, for the limited purpose of ITC reversal under section 17(3) and Chapter V of the CGST Rules, the value of a security is prescribed as a nominal fraction of its sale value to be treated as the value of "exempt supply." This distinction raises disclosure questions for GSTR-1 and GSTR-3B-whether sales of securities should be shown as out-of-scope supplies or under exempt-supply heads-and analogous questions arise for interest income reporting.