Question:
The definition of ‘money’ under GST law does not include:
The definition of ‘money’ under GST law does not include:
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Under GST, currency held for numismatic value is not considered as money for the purpose of taxation.
Updated On: Oct 30, 2025
- Letter of Credit
- Currency held for numismatic value
- Pay order
- Traveler cheque
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The Correct Option is B
Solution and Explanation
Step 1: Understanding the definition of ‘money’ under GST.
Under the Goods and Services Tax (GST) law, 'money' is generally understood to be the currency and legal tender used for transactions. However, currency held for numismatic value (i.e., as a collector's item) is excluded from this definition.
Step 2: Explanation of the options.
- (a) Letter of Credit: This is considered a financial instrument and falls within the scope of money under GST.
- (b) Currency held for numismatic value: This is excluded from the definition of money under GST, as it is considered a collector's item rather than a currency for transactions.
- (c) Pay order: A pay order is included as a form of money under GST.
- (d) Traveler cheque: This is also considered a form of money under GST.
Step 3: Conclusion.
Thus, the correct answer is (b) Currency held for numismatic value.
Under the Goods and Services Tax (GST) law, 'money' is generally understood to be the currency and legal tender used for transactions. However, currency held for numismatic value (i.e., as a collector's item) is excluded from this definition.
Step 2: Explanation of the options.
- (a) Letter of Credit: This is considered a financial instrument and falls within the scope of money under GST.
- (b) Currency held for numismatic value: This is excluded from the definition of money under GST, as it is considered a collector's item rather than a currency for transactions.
- (c) Pay order: A pay order is included as a form of money under GST.
- (d) Traveler cheque: This is also considered a form of money under GST.
Step 3: Conclusion.
Thus, the correct answer is (b) Currency held for numismatic value.
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