https://www.taxtmi.com/caselaws?id=768313 AAR Gujarat held that the applicant is not eligible to avail ITC of tax paid on inputs and input services used for subscription and redemption of mutual funds. It ruled that redemption of mutual fund units constitutes a "sale" of securities and falls within "exempt supply" for the purposes of Section 17(2) of the CGST Act. The argument that redemption is distinct from sale and that no machinery exists to compute the value of exempt supply was rejected. Consequently, the applicant must reverse proportionate ITC on common inputs and input services attributable to such exempt transactions. en-us Tue, 25 Mar 2025 00:00:00 +0530 Fri, 21 Nov 2025 14:52:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=768313 AAR Gujarat held that the applicant is not eligible to avail ITC of tax paid on inputs and input services used for subscription and redemption of mutual funds. It ruled that redemption of mutual fund units constitutes a "sale" of securities and falls within "exempt supply" for the purposes of Section 17(2) of the CGST Act. The argument that redemption is distinct from sale and that no machinery exists to compute the value of exempt supply was rejected. Consequently, the applicant must reverse proportionate ITC on common inputs and input services attributable to such exempt transactions. Case-Laws GST Tue, 25 Mar 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=768313