Futures Contract Turnover is included in GST turnover

[Harshit Sanghvi]

Person has been dealing in Futures in stock market where one lot sale value is 10lacs. Whether this turnover is included while computing aggregate turnover in GST as the person will be having professional income too but less than 20 lacs.

Please guide

[Harshit Sanghvi]

Dear experts please reply

[KASTURI SETHI]

Your answer is inherent in the definitions of 'Transaction Value,' 'Consideration' 'Aggregate Value' and scope of 'threshold exemption limit' and definition and scope of 'supply'. Pl. go through all the above in CGST Act and then post your query again.

My view

Both will be clubbed to arrive at threshold exemption limit.

[Shilpi Jain]

Futures would be covered under definition of securities  under SCRA. Would not be part of aggregate turnover

[KASTURI SETHI]

Dear Querist,

Just for knowledge sake also go through the following circular :-

Taxability of supply of securities under Securities Lending Scheme, 1997 - Clarification

Circular No. 119/38/2019-GST, dated 11-10-2019

 

AI Summary

Inclusion of futures turnover in GST aggregate turnover debated: competing views on whether securities treatment excludes futures. Whether turnover from futures contracts is included in GST Aggregate Turnover for threshold exemption depends on whether futures receipts qualify as consideration for a taxable supply. One view advocates clubbing futures receipts with other professional income to compute the threshold, while another treats futures as 'securities' outside aggregate turnover and cites departmental clarifications on the taxability of securities transactions.