TMI BlogGST-ITC on expenses in connection with Initial Public Offer (IPO)X X X X Extracts X X X X X X X X Extracts X X X X ..... Is Input Tax Credit under GST on expenses in connection with IPO allowed? Department has been issuing notices denying ITC calling it as exp in connection with trading on shares. Do we have any case law either under GST or previous regim? - Reply By KASTURI SETHI - The Reply = Dear Querist, Can you post relevant portion (major) of the Notice issued here ? It is necessary for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... correct reply. - Reply By Amit Agrawal - The Reply = Raising of capital ( through IPO ) is part of any business, in terms of clause (b) of Section 2(17). And expenses incurred in connection with IPO are in the course or furtherance of the business and thereby, tax-payer can take ITC there-against u/s 16(1) IMHO. Issuance of own shares a Co. through IPO cannot be called as 'trading in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... securities'. These are ex facie views of mine and the same should not be construed as professional advice / suggestion. - Reply By KASTURI SETHI - The Reply = Dear Querist, You have not replied to my request. I want relevant portion of SCN. - Reply By Amit Agrawal - The Reply = In continuation of my last post, attention is invited to relevant portion of Section 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7(3) which reads as follows: T he value of exempt supply under sub-section (2) shall be such as may be prescribed , and shall include supplies on which the recipient is liable to pay tax on reverse charge basis, transactions in securities , sale of land and, subject to clause (b) of paragraph 5 of Schedule II , sale of building ... ............ Relevant portion of 'Explanatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n' given under Rule 45 of the CGST Rules, 201 7 reads as follows: Explanation. - For the purposes of this Chapter,- (1) ...................... (2) for determining the value of an exempt supply as referred to in sub-section (3) of section 17 - (a) ....................... (b) the value of security shall be taken as one per cent. of the sale value of such security . ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IMHO, issuance of own shares by a Co. while raising capital through IPO cannot be called as 'selling securities'. These are ex facie views of mine and the same should not be construed as professional advice / suggestion. - Reply By Shilpi Jain - The Reply = Credit should be eligible. It is an expense incurred to raise capital - GST-ITC on expenses in connection with Initial Pu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... blic Offer (IPO) - Query Started By: - VENKATASUBRAMANIAN VENKATACHALAM Dated:- 10-1-2024 Last Replied Date:- 20-1-2024 Goods and Services Tax - GST - Got 5 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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