Section 98(4) of the CGST Act, 2017 - Levy of Tax - The Applicant submitted application for Advance Ruling “to determine the applicability of GST on the differential payment received by a party to the Contract in question from the other party to the Contract is event of “Settlement”, “Washout” or “Closure” of Contract by it in the context of purchase/ sale contracts of cotton, and specified in their Application under provisions of Section 98(4) of the CGST Act, 2017.” The Authority ruled out that In forward contracts in cotton sales, being settled by the Applicant with the other party to the contract by way of payment of the differential of forward rate and prevailing market rate on the settlement date, the same would be falling within the purview of 'securities' as defined in Section 2(101) of the CGST Act, 2017 and not chargeable to GST and; in cotton sales being settled by Applicant with the other party to the contract by way of payment of the differential of forward rate and rate fixed by the applicant using his discretion, such rate being different than the market price of cotton on the date of settlement, the same would not be falling within the purview of 'securities' as defined in Section 2(101) of the CGST Act, 2017 and chargeable to GST.Louis Dreyfus Company India Private Limited [2018] 4 TAXLOK.COM 029 (AAR-Punjab)