Does GST implementation reduces Stamp Duty, STT or CTT?

General
1

Does GST implementation in India will reduces Stamp Duty, STT or CTT?

2 Likes
2

No effect on STT and CTT. But this could mean uniform stamp duty for trading on exchanges, which presently differs from one state to another. So it might be good for people from states like TN where the stamp duty is quite high presently.

4 Likes
3

Thats good news! Hurrah!

4

Hello Nithin,

The above response is dated [Dec’14]; wanted to understand the latest

1/ Does the new GST likely to kick in from 1st July’18 will it increase the already huge burden of multiple taxes on trader community ?

2/ Does the new GST do away with the stupid stamp duty levy ?

Thanks!!

1 Like
5

Have answered it here.

  1. Yes, service tax was earlier 15%, now it is 18% under GST. So 3% increase everywhere (except on STT and stamp duty).

  2. No

6

Y don’t they increase taxes up to 90% n let the market dry up of retail investors :sob:

7

Nithin,

Thanks for the response!

as one of the biggest broker in the country, why don’t you please help us the trader community by forcing the concerned in bureaucracy and the Govt to see sense and rationalize/optimize/simplify the huge huge burden on us the traders.

I do know for a fact that you have already taken initiative on change.org and started a thread on this subject but the question is what next ? the initiate is already more than a year old, what is the Govt doing about it ??

on one side Govt is clearly aware the active populace in trading/investing in India is a completely negligible size and considering the fact especially post demonetization stock markets are one of the most cleanest (no black money) place where public can plan their financial goals.

this being the fact the govt is acting completely stupid and burding the traders big time with huge taxes, the height of shame of the Govt is even when the poor trader is in loss he is forced to pay taxes, leading brokers like you {though you are not Govt} have taken hundred steps to encourage more and more people to come out and trade, for example you pioneered the concept of ZERO charges for equity trading similarly i have seen many other brokers introducing innovative plans like if you close the trade in FIVE minutes there are no charges etc…

so you all brokers though in the private domain are doing hundred things to motivate/encourage the traders to participate in the stock market with such innovative products but what is the shameless Govt doing , nothing just nothing, pardon me for the language but myself being a strong follower of the PM and his big development strategy for the country, but please help me understand am I myself at mistake here, are these huge list of charges/levies justified as per you since you have a much bigger picture especially after the revision of stamp duty the traders burden has multiplied exponentially it all started with Chidambaram introducing the stupid and most expensive burden of STT and then post this Govt has come in first it was the huge damaging blow of stamp duty and now the major burden of GST hike by 3%,

any reason the Traders community is deliberately keeping quiet ??

any reason like so many other professions why the traders are taking all these humiliations and burden and endlessly suffering in silence ???

for example does the traders so helpless that we can not unite and show the power of the traders / investor community by boycotting trading in the markets until the govt intervenes and rationalizes the taxes ???

there are hundreds of large brokers and influential people in the investor/trader community why are they deliberately maintaining silence why are they not supporting the community by bring pressure on the FM and PM to wake up and see reason and logic in the demand of the traders and resolve this huge anomaly

request your response in details and thanks in anticipation!!

3 Likes
8

Hmm… we have done quite a few representations, we are part of forums which are pushing this as well. But I guess the challenge for the government is that direct tax collections in India is extremely less due to the parallel economy that exists (black money). I guess government has no other way to collect it, but indirectly. STT is an extremely easy for government to collect money, so don’t know if they will ever let it go.

What doesn’t make sense is stamp duty on contract notes. Hopefully that will get removed sometime in the near future.

1 Like
9

Nithin,

Thanks for the quick response!

first blow was STT (few years back) and then the increase in Stamp duty (April’ 17) and now the blow of GST (July’17).

first and fore most all the prices are sky rocketing almost on a daily basis and on top of that the levies/taxes are ever increasing and post this Govt. the frequency of increase is most rapid.

now to make the same profit we traders are forced to take more risks and thereby completely screw up our blood pressure levels big time.

it is a real shame we the traders are not taking to streets and gherao the FM the matter is obnoxiously serious this needs to be acted upon with all seriousness it is a real war like situation first of all the jobs are disappearing in the country in such a alarming speed and prices of all items are increasing and now the levies and taxes this Govt clearly wants the middle class families to commit mass suicide.

I strongly condemn the most irrational / illogical and senseless revision in STAMPDUTY and increase in levies (+3%) through the introduction of GST.

Shame on those who are introducing such severe punishment on the most helpless and most risk taking community of traders who need to be actually incentivized and encouraged since we the retail traders are the ones who are bringing in a fantastic liquidity in the markets and we are the real market makers and you the fools whoever introduced this retrograde step of hike in stamp duty and increase in levie by 3% through GST are being rewarded with hike in salary (today news, where the cabinet okays hike in salary a bill of 31000 CR annually) so this shameless set of people are looting the hard earned money of poor traders.

To all fellow traders, let all of us get united and ask the concerned to immediately STOP this harassment / nuisance of STAMPDUTY.

BR