TaxTMI 
TaxTMI 
Promoters of the limited compay offers their shares for sale to the public. After offer for sale by the promoters authorised and paid up share capital of the company remains the same. No new fund is introduced in the company. The company have incurred expenses for such offer for sale of promoters scurities and availed ITC on the said expenses.Whether the company is eligible for ITC?
ITC ON OFFER FOR SALE OF SHARES
17 Nov 2023 
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Input tax credit eligibility on GST for services in promoters' offer for sale hinges on classifying underwriting and listing as taxable services.
Whether input tax credit is available on GST charged for services incurred in an offer for sale of promoters' shares, given that securities transfers are not goods or services. One view denies credit since the transaction concerns securities; the contrary view treats underwriting, listing and related consultant charges as taxable services supplied to the company in the course of business and therefore eligible for input tax credit, subject to statutory conditions. (AI Summary)
Whether input tax credit is available on GST charged for services incurred in an offer for sale of promoters' shares, given that securities transfers are not goods or services. One view denies credit since the transaction concerns securities; the contrary view treats underwriting, listing and related consultant charges as taxable services supplied to the company in the course of business and therefore eligible for input tax credit, subject to statutory conditions. (AI Summary)