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Taxable value of supply

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Bhavesh

Accounts

146 Points Posted on 14 September 2023

what is a Taxable value of supply in case of share purchase or sale of the shares?.how it is derived?. whether the same is exempted charges?. please provide with an example, thanks.

Replies (2)

Quick Summary

The sale or purchase of shares is generally not considered a supply under GST, meaning it's not subject to tax and therefore has no taxable value. However, the value of securities sold can be included when calculating the reversal of input tax credit (ITC) under specific rules. Brokerage fees and other services associated with share transactions are taxable at 18%.

sabyasachi mukherjee

Profession

19978 Points Posted on 14 September 2023

Taxable value of supply .
in case of Share purchase is different.

Aashok Kumar Sharma

Finance/Compliance Consultant

74667 Points Posted on 08 November 2026

Securities aren't goods or services:
• Shares and securities are excluded from both "goods" (Sec 2(52)) and "services" (Sec 2(102)) under GST. Purchase or sale of shares isn't a supply. No GST, and no "taxable value".
• For Rule 42/43 reversal, the value of exempt supply includes 1% of the sale value of securities (Explanation to Rule 45). That's only for ITC apportionment, not for tax.
• Brokerage and other services related to shares are taxable at 18%.