TaxTMI 
TaxTMI 
XYZ, a Company is registered person as trader of goods under GST. It invests some of its funds in Mutual Fund. At the time of sale of MF, it pays GST on bill of Share broker of Mutual Fund. Is the company eligible to take credit of the same more particularly when the Services by way of extending deposits, loans or advances etc. has been exempt from GST.
Eligibility of Input tax credit
15 Nov 2019 
3 Replies 
3888 Views Asked by
Input tax credit denial for brokerage services: GST on mutual fund trades not claimable under blocked credits rule.
ITC on GST charged by a stock broker for sale of mutual fund units is not available; forum replies attribute the disallowance to the GST blocked credit provision (Section 17(3) CGST) and distinguish stock broking from services of extending deposits, loans or advances, treating brokerage GST as an ineligible input cost rather than claimable credit. (AI Summary)
ITC on GST charged by a stock broker for sale of mutual fund units is not available; forum replies attribute the disallowance to the GST blocked credit provision (Section 17(3) CGST) and distinguish stock broking from services of extending deposits, loans or advances, treating brokerage GST as an ineligible input cost rather than claimable credit. (AI Summary)