Securities lending taxable; lending fee attracts GST and liability moves to borrower under reverse charge from Oct 1, 2019. Lending of securities under the Securities Lending Scheme does not dispose of securities and therefore is not a transaction in securities, but the lending fee charged by the lender is consideration for a taxable service and has been taxable under GST since 01.07.2017. Intermediaries' facilitation services are separately taxable. The service is taxable at 18%. For 01.07.2017-30.09.2019 GST is payable by the lender under forward charge (IGST); from 01.10.2019 the borrower is liable 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 taxable; lending fee attracts GST and liability moves to borrower under reverse charge from Oct 1, 2019.
Lending of securities under the Securities Lending Scheme does not dispose of securities and therefore is not a transaction in securities, but the lending fee charged by the lender is consideration for a taxable service and has been taxable under GST since 01.07.2017. Intermediaries' facilitation services are separately taxable. The service is taxable at 18%. For 01.07.2017-30.09.2019 GST is payable by the lender under forward charge (IGST); from 01.10.2019 the borrower is liable under reverse charge (IGST).
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
TaxTMI 
