Lending of securities taxable; lender paid IGST earlier; borrower liable under reverse charge (IGST) from Oct 1, 2019. The temporary lending of securities does not constitute disposal of securities, but the lending fee charged by the lender is consideration for a taxable service and attracts GST at 18%. Intermediaries' facilitation services are separately taxable. For 01.07.2017-30.09.2019 GST was payable by lenders under forward charge (IGST), with credit for CGST/SGST/UTGST already paid; from 01.10.2019 the borrower is liable to pay GST under the reverse charge mechanism (IGST).
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Lending of securities taxable; lender paid IGST earlier; borrower liable under reverse charge (IGST) from Oct 1, 2019.
The temporary lending of securities does not constitute disposal of securities, but the lending fee charged by the lender is consideration for a taxable service and attracts GST at 18%. Intermediaries' facilitation services are separately taxable. For 01.07.2017-30.09.2019 GST was payable by lenders under forward charge (IGST), with credit for CGST/SGST/UTGST already paid; from 01.10.2019 the borrower is liable to pay GST under the reverse charge mechanism (IGST).
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