GST on brokerage

In zerodha if we are successful for 60days(60days challenge) we are getting Rs.6000 worth brokerage back. But still we are paying 18% i.e, Rs.1080 as GST for that brokerage. Is there any way to stop paying that.

For example keeping 60days challenge refund in separate wallet and deducting daily brokerage from it to avoid GST

Have you been successful for 60 days? and what do you mean by that. Please explain. I am not educated about this 60 day challenge.

wow. thanks Nandha. I had seen this in the very beginning but I didn’t knew they give Rs 6000/- reversal for brokerage. Thats motivating enough to take the challenge. :wink:
Thanks again.

1:- Service tax is a tax levied by the government on service providers on certain service transactions, but is actually borne by the customers. It is categorized under Indirect Tax and came into existence under the Finance Act, 1994.
2.It is important to note that service taxes are payable on the consideration charged by the service provider from the service recipient. Further, the service tax rules specifically provide that the tax is only to be paid upon receipt of consideration by the service provider, unlike any other indirect tax.
suppose you won 60 day challenge and got 6000 in wallet(we assume that zerodha allow to take refund in separate ewallet ).
you want that if you further trade then zerodha deduct such brokerage from wallet and not charged separately
and you think that i will not liable to pay gst because there no brokerage?
but in this case you also liable to pay gst because:-
1:-there is a service i.e. zerodha act as mediator between exchange and us to allow trade (so it is service provide by zerodha)
2: zerodha recevie consideration from you . it is not matter it got from your separate wallet. but reality is zerodha got consideration in respect to his services.
so in short you are liable to pay gst.

adn if zerodha not charged gst from you than as per service tax rules , the amount which is collect by zerodha from your from your e wallet for example rs. 100 this amount is to be assumed to be inclusive of service tax(now gst) .
it means that if zerodha forget or waive to charge gst than GST are recover from rs. 100 it means in this case zerodha liable to pay 18 rs.
so zerodha never do such mistakes

Equity delivery also a service provided by zerodha, but they are not liable to pay service tax(GST) as the brokerage is 0.
Same way zerodha can make 0 brokerage untill those 6000 become 0 right. The can deduct it from that wallet by anyother name like Zerodhacash

in case of delivery zerodha is charging 0 brokerage so it not liable to gst also (because it is covered under free services and also there is no consideration receive by zerodha in respect of services)
but in 2nd case (6000 wallet ) zerodha charging you ,it not matters it charging from ewallet or directly but if zerodha receive any consideration in any form and in any manner than such transaction is liable to service tax(gst)

The wallet is not cash. It is something given by zerodha(as gift) and they are taking it back

they are taking back but why ?
they are taking back in respect of their services which is provided to you…

so when they take back it it wil become consideration recevide by him in respect of their services

if that is the case if u give some gift to zerodha for doing brokerage service is it taxable?

i just try to confirm whether you are 100% sure or you think like that

yes if we give gift to zerodha in respect of brokerage than it is also taxable
in such case valuation rules of service tax are applicable.

i am not think like that but i am 99% sure ( 1 % in doubt)

and 1 % doubt is for reason of any new amendment in service tax rules are happen or not after gst.

separate wallet idea is mine. there may be some other ideas for the same problem :wink:

it is possible only when zerodha introduce monthly brokerage plan like sasonline(rs.999 for unlimited) in this case you have to pay only one time gst on brokerage but you shall pay gst on transaction charges:grinning: