No ITC on Inputs & Services for Mutual Fund Subscription & Redemption: AAR Gujarat

In re Zydus Lifesciences Ltd. (GST AAR Gujarat) The Gujarat Authority for Advance Ruling (AAR) addressed Zydus Lifesciences’ query regarding the eligibility of Input Tax Credit (ITC) on common inputs and input services used for subscribing to and redeeming mutual fund units. Zydus Lifesciences, a pharmaceutical company, argued that mutual fund redemptions should not be considered exempt supplies under GST, as securities are excluded from the definition of goods and services. The company contended that they should therefore be able to claim the ITC on common inputs. However, the AAR ruled...