Below is the extract Notification No 70/2019 – Central Tax

In exercise of the powers conferred by sub-rule (4) to rule 48 of the Central Goods and Services Tax Rules, 2017, the Government, on the recommendations of the Council, hereby notifies registered person, whose aggregate turnover in a financial year exceeds one hundred crore rupees, as a class of registered person who shall prepare invoice in terms of sub-rule (4) of rule 48 of the said rules in respect of supply of goods or services or both to a registered person. This notification shall come into force from the 1st day of April, 2020.

Definition of Goods as per Goods & Services Tax

Goods” has been defined as every kind of movable property other than money and securities but includes actionable claim, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before supply or under a contract of supply.

Definition of Aggregate Turnover under GST

“aggregate turnover” means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and inter-State supplies of persons having the same Permanent Account Number, to be computed on all India basis but excludes central tax, State tax, Union territory tax, integrated tax and cess.

Considering the above notification & definitions please find below our understanding :-

1) Applicability of GST e-Invoicing for Stock Brokers

 E – Invoice is applicable to registered under  entities GST whose aggregate turnover in any financial year (from FY 2017-18 TO FY 2019-20) exceeds Rs. 100 Cr. Accordingly stock brokers  registered under GST whose gross turnover exceeds 100 CR. will be required to register under E – Invoicing.

(Please note that since securities is not covered under Goods definition hence turnover from trading in securities shall not be counted for the above mentioned limit)

2) Applicability of GST e-Invoicing to companies dealing in securities

Since securities are not covered under Goods definition, E – Invoicing will not be applicable to companies dealing in securities however if the company is also providing broking services & is registered under GST and turnover is exceeding Rs. 100 Cr, then registration will be required under E – Invoicing.

Extract of definition of ‘Goods’ and ‘Aggregate Turnover’  from CBIC Flyer can be read here- –

Also an argument can be made if we consider definition of Goods under Sale of Goods Act where

Goods means every kind of movable property other than actionable claims and money; includes stock and shares , growing crops , grass , and things attached to or forming part of the land which area agreed to be severed before sale or under the contract of sale. 

However since definition of goods is clear under Goods & Services Tax hence it shall prevail over the definition under Sale of Goods Act

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April 2021