Securities lending fees are taxable; lenders paid IGST until 30 Sep 2019, borrowers liable under reverse charge from Oct 1, 2019. Lending of securities under the Securities Lending Scheme is a taxable supply of services when a lending fee is charged; intermediaries' facilitation services are also taxable. The supply attracts GST at 18%. From 01.07.2017 to 30.09.2019 the lender was liable under forward charge (IGST), and from 01.10.2019 the borrower is liable under the reverse charge mechanism (IGST).
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Provisions expressly mentioned in the judgment/order text.
Securities lending fees are taxable; lenders paid IGST until 30 Sep 2019, borrowers liable under reverse charge from Oct 1, 2019.
Lending of securities under the Securities Lending Scheme is a taxable supply of services when a lending fee is charged; intermediaries' facilitation services are also taxable. The supply attracts GST at 18%. From 01.07.2017 to 30.09.2019 the lender was liable under forward charge (IGST), and from 01.10.2019 the borrower is liable under the reverse charge mechanism (IGST).
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