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!

[Sadanand Bulbule]

The sale of silver by the company constitutes a "supply" under Section 7(1) of the CGST Act because it is a transaction for consideration made in the course or furtherance of business, regardless of the companys primary industry or the fact that Input Tax Credit was not claimed.

[Sooraj B]

The term business as per Section 2(17) of the CGST Act includes any trade, commerce etc or any similar activity whether or not for pecuniary benefit and includes such activity whether or not there is volume, frequency, continuity or regularity of such transaction. Accordingly, the sale of silver by the Company will constitute a supply under Section 7(1) of the CGST Act.

AI Summary

Sale of investment silver by a company is a taxable supply under GST when made in the course or furtherance of business. Sale of silver held as an investment by a company is a supply under Section 7(1) of the CGST Act when made for consideration, and is taxable even if the company's primary business is unrelated to precious metals and even if Input Tax Credit was not claimed. The statutory definition of business is broad and covers activities irrespective of pecuniary motive, volume, frequency, continuity or regularity, so an infrequent sale still qualifies as supply in the course or furtherance of business.