AI Drafter 
TaxTMI 
TaxTMI 
TaxTMI 
2019 (8) TMI 32
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....g Order No. 18, dated 14-12-2018 by the Authority for Advance Ruling, Uttar Pradesh. At the outset, we would like to make it clear that the provisions of both the CGST Act and the UPGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the UPGST Act. Brief facts of the case 1. M/s. SPFL Securities Limited 15/63-M, SPFL House, Civil Lines, Kanpur, Uttar Pradesh, 208001 (here in after called the applicant) is a registered assessee under GST having GSTN : 09AABCS2452CIZP. 2. The applicant is engaged primarily in the business of providing service of....
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....ailed to appreciate the most important fact of the case, which if considered will turn the whole balance of convenience in favour of the Appellant. The impugned Ruling has failed to consider the S. No. 80 of FAQ on Banking, Insurance, stock issued by CBIC, The said S. No. has clearly mentioned that :- S. No. Question Answer 80 Is GST leviable on interest/delayed payment charges charged to clients for debit settlement obligations/ margin trading facility? Any interest/ delayed payment charges charged for delay in payment of brokerage amount/settlement obligations/margin trading facility shall not be leviable to GST since settlement obligations/margin trading facilities are transactions which are in the ....
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....on of Delayed payment surcharge attributable supply will be exempted. 7. Applicant was granted personal hearing on 27-3-2019, Personal Hearing Mr. Prakhar Gupta, CA represented the firm M/s. SPFL Securities Ltd., Kanpur. Mr. Prakhar Gupta, CA submitted that the issue relates to late payment charge towards amount remaining unfulfilled within (T+1) norms provided by stock exchange. Their contention has been that the said charges are not on the account of stock broking activity on which due tax liability is discharged, in fact it is on amount remaining unfulfilled (short paid) at the time of initial purchase of stock between stock broker and client within the stipulated time i.e., (T+1). His contentions have been since the....
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....o initially pay margin money either in cash or in the form of collateral security such as shares. On the basis of the available margin, the clients are allowed to sell and purchase securities on the Exchange through the broker. Payments to Stock Exchange, for such purchase of securities, where payment are not made by clients for purchase of securities of the Stock Exchange (within T+1 i.e. trade day plus one day) as per SEBI regulations, stock exchange debits account of the Broker against said purchases. Falling which the business of brokers stands shut by stock exchange under its regulations by closing trading terminal of the stock broker. 10. Client reimburse said amount to broker with charge for delayed payment. In this ca....
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....eans anything other than goods, money and securities but includes activities relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged; [Explanation. - for the removal of doubts, it is hereby clarified that the expression "services" includes facilitating or arranging transactions in securities;] the corresponding delayed payment charges which are also linked to the above service of trading of securities should also stand exempt under GST. 13. Another point raised by the Appellant is regarding the FAQ on the Banking, Insurance, Stock amended by the C.B.I & C. on 27-12-2....