TaxTMI 
TaxTMI 
Taxability under GST of a Shareholder's Right to Require Purchase of Shares (Put Option)
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....axability under GST of a Shareholder's Right to Require Purchase of Shares (Put Option) <br> Query (Issue) Started By: - Dipika Shetye Dated:- 24-8-2026 Goods and Services Tax - GST <br> Got 2 Replies....
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.... <br> GST<br> <br> A company has two classes of equity shares, one carrying economic rights and the other carrying voting rights. Under a Shareholders' Agreement certain holders of the economic-rights....
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.... shares are granted a put option. The put option gives such shareholders the right, but not the obligation, to require another shareholder group to purchase the economic-rights shares held by them at ....
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....specified terms. No separate consideration is payable to COmpany for grant of the put option. The issue for consideration is whether the grant of such put option (i.e, the Right to Sell) under the SHA....
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.... constitutes a supply of services under GST. --Reply By: Raam Srinivasan Swaminathan Kalpathi The Reply: Perfect and apt reply by respected Sri.Sadanandji. Have nothing further to add. --Reply By: ....
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....Sadanand Bulbule The Reply: This kind of transactions are non-taxable involving " Securities" being kept outside the definition of services under Section 2(102) of the CGST Act, besides under Secti....
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....on 2(52) covering "Goods" as well. <br>***<br> Discussion Forum - Knowledge Sharing....