Securities lending is taxable: lending fees and intermediary facilitation attract GST; borrower liable under reverse charge. The temporary lending of securities under the Securities Lending Scheme does not amount to disposal of securities, but the lending activity (lender charging a lending fee) and intermediary facilitation are taxable services. Lending is classifiable under heading 997119 at 18% GST. For 01.07.2017-30.09.2019 GST was payable by the lender under forward charge (IGST) subject to not duplicating earlier intra-state taxes; from 01.10.2019 tax liability shifts to the borrower under reverse charge (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.
Securities lending is taxable: lending fees and intermediary facilitation attract GST; borrower liable under reverse charge.
The temporary lending of securities under the Securities Lending Scheme does not amount to disposal of securities, but the lending activity (lender charging a lending fee) and intermediary facilitation are taxable services. Lending is classifiable under heading 997119 at 18% GST. For 01.07.2017-30.09.2019 GST was payable by the lender under forward charge (IGST) subject to not duplicating earlier intra-state taxes; from 01.10.2019 tax liability shifts to the borrower under reverse charge (IGST).
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