ITC reversal on sale of Mutual fund units

[Siddharth Jain]

Whether ITC reversal is applicable on sale of Mutual fund units under GST?

If yes, then under which GSTIN is the reversal to be made if a taxpayer has a PAN India presence?

Additionally, whether such reversal is required to be made even from a SEZ GSTIN?

AI Summary

Debate on ITC Reversal for Mutual Fund Sales Under GST: Section 17(3) of CGST Act Sparks Different Opinions A discussion on the applicability of Input Tax Credit (ITC) reversal on the sale of mutual fund units under GST highlights differing views. One expert states that ITC reversal is required under Section 17(3) of the CGST Act, 2017, if common ITC is involved, even for SEZ GSTINs. Another expert argues that ITC reversal is unnecessary if there are no exempt supplies. The forum clarifies that mutual funds are neither goods nor services, and transactions in securities are not taxable under GST. The discussion also explores the definitions of securities and their implications under GST law, emphasizing the need for careful tax compliance and structuring.