Clarification on taxability of shares held in a subsidiary company by the holding company

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....-GST of State Tax, dated August 18, 2023. Subject : Clarification on taxability of shares held in a subsidiary company by the holding company Representations have been received from the trade and field formations seeking clarification on certain issues whether the holding of shares in a subsidiary company by the holding company will be treated as "supply of service" under GST and....

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.... under clause (52) of section 2 of DGST Act and the definition of services under clause (102) of the said section. Further, securities include 'shares' as per definition of securities under clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956.This implies that the securities held by the holding company in the subsidiary company are neither goods nor services. Further, purchas....