TaxTMI 
TaxTMI 
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?
GST-ITC on expenses in connection with Initial Public Offer (IPO)
10 Jan 2024 
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Input Tax Credit on IPO expenses may be available where share issuance is a business activity, not trading in securities.
Whether ITC under GST is claimable for IPO-related expenses is disputed where authorities characterise such expenses as trading in securities. Contributors assert that raising capital via issuance of a company's own shares is part of the course of business and is not trading in securities, so expenses to raise capital should qualify for ITC; they note the separate exempt-supply treatment and prescribed valuation approach for securities that must be considered when assessing entitlement. (AI Summary)
Whether ITC under GST is claimable for IPO-related expenses is disputed where authorities characterise such expenses as trading in securities. Contributors assert that raising capital via issuance of a company's own shares is part of the course of business and is not trading in securities, so expenses to raise capital should qualify for ITC; they note the separate exempt-supply treatment and prescribed valuation approach for securities that must be considered when assessing entitlement. (AI Summary)