Bona fide disclosure requirements govern under-reporting penalties, and post-penalty immunity applications cannot secure available statutory protectio...
Certificate-of-origin verification procedure governs preferential customs benefits; denial without retroactive verification was set aside with consequ...
Disciplinary Committee jurisdiction and mandatory investigation requirements invalidated cancellation of an insolvency professional's registration and...
The AAR ruled that a listed entity is not eligible to avail Input Tax Credit (ITC) on expenditure incurred for buyback of its shares. The authority determined that buyback of shares is neither a supply of goods nor services, as "securities" are explicitly excluded from both definitions under CGST Act. Since section 16(1) permits ITC only on supply of goods or services used in course of business, the primary condition for ITC availment is not satisfied. The applicant's argument that such expenditure furthers business activity becomes irrelevant once the threshold requirement fails. The AAR concluded that the applicant must reverse ITC on common inputs and input services related to share buyback expenditure.
The AAR ruled that a listed entity is not eligible to avail Input Tax Credit (ITC) on expenditure incurred for buyback of its shares. The authority determined that buyback of shares is neither a supply of goods nor services, as "securities" are explicitly excluded from both definitions under CGST Act. Since section 16(1) permits ITC only on supply of goods or services used in course of business, the primary condition for ITC availment is not satisfied. The applicant's argument that such expenditure furthers business activity becomes irrelevant once the threshold requirement fails. The AAR concluded that the applicant must reverse ITC on common inputs and input services related to share buyback expenditure.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 4805
Join Channel
TaxTMI 
