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

Input tax credit reversal for transactions in securities may be triggered when common ITC funds mutual fund dealings.
Reversal of Input Tax Credit on sale or redemption of mutual fund units arises where such dealings are treated as transactions in securities and common ITC has been used; valuation rules for exempt supplies include securities at a prescribed percentage of sale value and apportionment rules govern reversal, including for SEZ registrations when common ITC is involved.