GST @18% Applicable on Fees payable to SEBI

The National Stock Exchange of India Limited(NSE) vide Circular No. 2/2022 dated 18th July 2022 notifies GST on Fees payable to SEBI.

Institutions that provide market infrastructure, including as stock exchanges, as well as individuals who trade securities will be required to pay a GST of 18% on the fees levied by Sebi’s regulator.

According to a circular, the new tax rate will take effect on 18th July 2022.

This comes after the GST Council’s recommendation at its meeting last month to revoke the Sebi exemption for services, which was announced on July 13.

The Circular is Given Below:

The Department of Revenue, Ministry of Finance vide Notification no. 04/2022 Central Tax (Rate) dated July 13, 2022, has notified that the GST exemption granted to the services provided by SEBI is being withdrawn with effect from July 18, 2022. According to the notification, the services provided by the SEBI shall be subject to GST with effect from July 18, 2022.

In compliance to the Notification no. 04/2022, the Exchange is directed by SEBI to start collecting GST @ 18% on the fees payable to SEBI from July 18, 2022, onwards, which is collected by Exchange on behalf of SEBI. Accordingly, the members may note that from July 18, 2022, onwards, the Exchange shall collect GST @ 18% on fees payable to SEBI.

Further, the SEBI has advised the Exchange to direct the trading members to levy GST @ 18% on the fees payable to SEBI, from their clients from July 18, 2022, onwards by taking any appropriate/extraordinary measures till necessary changes in the systems are in place.

Accordingly, the members are advised to take note of SEBI’s instruction in respect of levy of GST from their clients on SEBI fees.

In case of any clarifications, you may write / contact Viren Limbachiya/ Swati Murkya on email [email protected] /[email protected] or 022-26598142/ 022-26598140 / 26598100 Ext. 23157/ 23082.

For Official Circular Download PDF Given Below: