Introduction:
The GST Act came in force from 1st July, 2017. There were many interpretation issues with respect to the definitions, glossary and terms use in the law. Since, such definitions were adopted from various legacy laws in India prior to GST; such as Service Tax, State VAT, Central Excise Act, Luxury Tax, Entertainment Tax, etc. it was difficult to make applicable one definition for different sectors. Hence, some modifications from existing definitions were made. Therefore, it was important to established a nexus of the terms used in the GST definitions. The definition discussed here is”Securities”.
So what do you mean by “Securities”?
Section 2(101) of CGST Act, 2017 –“securities” shall have the same meaning as assigned to it in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956;
Conclusion:
As per Section 2(101) of the CGST Act, the term securities derive its meaning from Section 2(h) of the Securities Contracts (Regulation) Act, 195, In terms of which, securities inter alia include shares, scrips, stocks, bonds, derivative instruments etc.