| Question And Answer | |
|---|---|
| Subject: | Reversal of GST ITC as per rule 42/43 & valuation of future option transaction |
| Category: | GST |
| Querist: | Aditya Bansal |
| Answered by: | Advocate C.B.Thakar |
| Tags: | GST, Reversal of GST |
| Date: | August 22, 2022 |
Stock broker is dealing in its own Ac in future & option of equity/currency/commodity/index through stock exchanges.
- Whether stock broker needs to revere the Common ITC on transaction on securities on above transaction of future & option?
- If yes then, how to calculate sale value of security in case of future transaction of equity & index?
- As per explanation value of security will be 1% of sale value of security. whether value of security is 1 % of notional sale value of securities or 1 % of net of difference between future buy & sale.?
- Further how to calculate value of security in case of index future transactions?
- Furthermore, how value exempted turnover in case of option transactions.?
- whether value of security will be 1 % of notional sale value of securities or 1 % of net of difference between option premium of buy & sale.
- Is there any change in the valuation mechanism in case of transaction in future option of currency or of commodity or of equity or of index?
Answer: As per available information I opine as under:-
1. ITC will be required to be revered from common ITC on above future and option transactions.
2& 3 The value of securities in future transaction should be taken at notional value.
4 In case of Index Future, the value should be the Index value.
5. In option transactions the difference (margin) should be considered for exempted value.
6. 1% of net of difference between option premium buy and sale.
7. There will not be difference even if items involved are other than future option.
The above reply is as per available information. There appears to be no clarifications from CBIC. You can also apply mind for other different possibilities.