GST applicability on sale of silver as an investment

[Neer Maru]

Hi, Just out of curiosity, if a company purchases silver as an investment, does not claim ITC. and later it sells it to the directors/outsiders for consideration at MV with some profit. Whether GST will be applicable on sale. Will it be considered supply as per 7(1), Whether it will be considered in course or furtherance of business? Note: the company is in any business not even remotely connected to precious metals

Thanks in advance!

AI Summary

GST on sale of investment silver depends on whether the transaction is a supply in furtherance of business Query concerns GST treatment of a companys purchase of silver as an investment (no ITC claimed) and subsequent sale at market value to directors/third parties. The core legal point is whether such sale qualifies as a taxable supply in the course or furtherance of business; if it does, GST would be attracted notwithstanding the asset was held as an investment, and the sale consideration at market value would form the taxable value. Classification of silver as goods and applicability of any exemption or valuation rules will determine taxability. The text records a question only; no authoritative conclusion is provided.