Securities lending: lending fees are taxable under GST; borrower liable under reverse charge mechanism with IGST applicable. The lending fee charged by a lender under the Securities Lending Scheme, 1997 constitutes consideration for a taxable supply of service and has been subject to GST since 01.07.2017; intermediaries' facilitation services are also taxable. The supply is classifiable under heading 997119 at 18% GST. For 01.07.2017-30.09.2019 the lender bears IGST liability (subject to credit for any CGST/SGST/UTGST already paid); with effect from 1 October 2019 the borrower is liable to pay IGST under the reverse charge mechanism.
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: lending fees are taxable under GST; borrower liable under reverse charge mechanism with IGST applicable.
The lending fee charged by a lender under the Securities Lending Scheme, 1997 constitutes consideration for a taxable supply of service and has been subject to GST since 01.07.2017; intermediaries' facilitation services are also taxable. The supply is classifiable under heading 997119 at 18% GST. For 01.07.2017-30.09.2019 the lender bears IGST liability (subject to credit for any CGST/SGST/UTGST already paid); with effect from 1 October 2019 the borrower is liable to pay IGST under the reverse charge mechanism.
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