Question:medium

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: May 24, 2026
  • 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 GST law, "money" refers to currency used for transactions, but it does not include items held for numismatic purposes. Numismatic items, such as coins or currency collected for their value as collectibles, are excluded from the definition of money under GST. Step 2: Explanation of Other Options.
- (a) Letter of credit is a financial instrument included under the GST definition of money. - (c) Pay order is a form of financial instrument used in transactions, so it is included under the definition. - (d) Traveler's cheque is a negotiable instrument and is included as part of the definition of money under GST. Step 3: Conclusion.
Currency held for numismatic value is not considered "money" under GST law, making option (b) the correct answer.
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