Securities lending supply is taxable; lenders charged until 30 Sep 2019, borrowers liable under reverse charge from 1 Oct 2019. Lending of securities under the Securities Lending Scheme does not amount to disposal of securities but the lending fee charged by the lender is taxable as a service. Intermediaries' facilitation services are taxable separately. The supply is classified as a service taxed at 18%. For 01.07.2017-30.09.2019 GST was payable by the lender under forward charge (IGST) subject to credit where CGST/SGST/UTGST was paid; 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 supply is taxable; lenders charged until 30 Sep 2019, borrowers liable under reverse charge from 1 Oct 2019.
Lending of securities under the Securities Lending Scheme does not amount to disposal of securities but the lending fee charged by the lender is taxable as a service. Intermediaries' facilitation services are taxable separately. The supply is classified as a service taxed at 18%. For 01.07.2017-30.09.2019 GST was payable by the lender under forward charge (IGST) subject to credit where CGST/SGST/UTGST was paid; from 01.10.2019 the borrower is liable under reverse charge (IGST).
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