Hi,
If I trade or invest through GST Registered Company:
Is it possible to take input of GST paid during the brokerage?
Also, can we take GST input for Zerodha API, Sensibull & other products?
I’m quoting this response from our support portal:
*Section 16 of the GST Act speaks about the eligibility & conditions for taking input tax credits. *
The specific section, states that any registered person can avail credit of tax paid on the inward supply of goods or services or both, which is used or intended to be used in the course or furtherance of business. The credit chain ends when such goods or services are sold to the final customer for personal use.
Further, Input tax credit is not available in some cases as mentioned in section 17(5) of CGST Act, 2017. Some of them are as follows:
f. Goods and/or services used for private or personal consumption, to the extent they are so consumed;
In case of the brokerage industry, the charges levied on the Contract note are charged to the end client and these charges cannot be passed by the client in the supply chain.
In short, if you are trading for yourself, there doesn’t arise a question of the services being passed on in the supply chain in order for you to claim input credit.
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