How will be GST affecting the taxes that are currently charged by the exchange and the government like STT, Service Tax, SEBI Charges, Stamp Duty, Transaction Charges, will these be waved off?
2 Likes
GST doesn’t really benefit broking business much. The only slight advantage is that earlier the VAT paid towards the purchase of assets couldn’t be set off, it can be now under GST regime. So costs for servers etc will technically come down. But this wouldn’t really a big component for a broking business.
The disadvantage is the added compliance cost. Earlier service tax returns were needed to be filed once in 6 months, now we have to do it once a month. Also, costs for customers and our prop trading desk has gone up from 15% to 18% (brokerage + exchange charges + clearing fees) due to GST.
1 Like