The document is a professional certificate issued by a Chartered Accountant confirming that a private limited company engaged primarily in trading, investment, or dealing in securities is not liable for GST registration under the Central Goods and Services Tax Act, 2017. The certificate explains that securities are excluded from the definitions of both “goods” under Section 2(52) and “services” under Section 2(102) of the CGST Act. Since transactions in securities are neither supply of goods nor supply of services, such activities do not attract GST. Accordingly, turnover arising solely from securities transactions is not considered taxable turnover for GST registration purposes, provided the company does not undertake any other taxable supplies exceeding the prescribed threshold limit. The certificate is issued based on information and records provided by the company management and is intended for submission before GST authorities, banks, or for general compliance and regulatory purposes.
CA Certificate Format for Non-Applicability of GST Registration on Securities Trading Activities
To Whomsoever It May Concern
This is to certify that:
- M/s. ______________________ Pvt. Ltd. (CIN: ____________, PAN: ____________) is a company incorporated under the provisions of the Companies Act, 2013, having its registered office at ________________________________________.
- The company is primarily engaged in the activity of dealing/trading/investment in securities, including shares, stocks, debentures, bonds, mutual funds, derivatives, and other securities as defined under the Securities Contracts (Regulation) Act, 1956.
- As per the provisions of the Central Goods and Services Tax Act, 2017 (“CGST Act”):
- Section 2(52) defines “goods” as every kind of movable property other than money and securities; and
- Section 2(102) defines “services” as anything other than goods, money, and securities.
- Further, transactions in securities are neither treated as supply of goods nor supply of services under the GST law. Accordingly, the activity of purchase, sale, trading, or investment in securities does not constitute a taxable supply under the CGST Act, 2017.
- Based on the books of account, records, and information made available to us, the company is not engaged in any taxable outward supply liable to GST registration. Hence, the company is not required to obtain registration under the Goods and Services Tax Act, 2017, in respect of its securities trading activities, subject to the condition that it does not undertake any other taxable supply exceeding the prescribed threshold limit under the GST law.
This certificate is issued at the request of the company for submission before GST authorities, banks, financial institutions, or other statutory/regulatory authorities, and should not be used for any other purpose without our prior written consent.
For __________________ & Co.
Chartered Accountants
Firm Registration No.: ____________
Signature: ____________________
Name of Partner: ________________
Membership No.: ________________
UDIN: _________________________
Date: ____________
Place: ____________
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