Held - Shares being securities, are neither goods nor services. Therefore, a transaction in securities, is not a supply in GST and hence not taxable. Section 17(2) ibid, restricts allowance of input tax credit of goods or services or both to the extent of expenses attributable to taxable supplies. Therefore, any tax paid on goods or services or both used for transaction in securities, which is not even a supply und.....

Held - We find that the applicant has erred in assuming that they are eligible for ITC. This is more so since section 16(1) of CGST Act 2017, reproduced supra, states that every registered person shall be entitled to take credit of ITC charged on any supply of goods or services or both used or intended to be used in the course or furtherance of business. Now a conjoint reading of the definitions as provided in sect.....

Held - We have heard the rival submissions and perused the material on record. The Hon'ble High Court of Karnataka in the case of CIT v. Motor Industries Co. Ltd. (supra) has held as follows:-

"26. The increase in the capital results in expansion of the capital base of the company and incidentally that would help in the business of the company and may also help in the profit- making. The expenses incurred in that connection still retain .....

Held - The increase in the capital results in expansion of the capital base of the company and incidentally that would help in the business of the company and may also help in the profit- making. The expenses incurred in that connection still retain the character of a capital expenditure since the expenditure is directly related to the expansion of the capital base of the company. Issue of bonus shares does not result in the expansion of capit.....