GST-ITC on expenses in connection with Initial Public Offer (IPO)

[VENKATASUBRAMANIAN VENKATACHALAM]

Is Input Tax Credit under GST on expenses in connection with IPO allowed? Department has been issuing notices denying ITC calling it as exp in connection with trading on shares.

Do we have any case law either under GST or previous regim?

AI Summary

Debate on GST Input Tax Credit eligibility for IPO-related expenses; participants cite GST Act to support claims. A discussion on a forum addresses whether Input Tax Credit (ITC) under the Goods and Services Tax (GST) is allowable for expenses related to an Initial Public Offering (IPO). The department has been denying ITC, labeling it as expenses related to trading in shares. Participants argue that raising capital through an IPO is part of business activities, thus qualifying for ITC under GST provisions. Some contributors request specific details from notices to provide accurate advice, while others cite relevant sections of the GST Act to support their views that such expenses should be eligible for ITC.