Clarification on taxability of shares held in a subsidiary ...

Circulars     GST - States

March 21, 2024

Clarification on taxability of shares held in a subsidiary company by the holding company - Delhi SGST - The circular provides a clear-cut clarification, stating that securities, including shares, are neither considered goods nor services as per the definitions provided under the Delhi / Central Goods and Services Tax Act, 2017. This classification or rather, the lack thereof, directly implies that transactions involving the purchase or sale of shares are not deemed as a supply of goods or services. Therefore, such transactions fall outside the scope of GST.

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