Homeeconomy News

Brokers to pay GST on interest income from loans to clients, says report

Brokers to pay GST on interest income from loans to clients, says report

Brokers to pay GST on interest income from loans to clients, says report
Profile image

By CNBC-TV18 Jun 8, 2018 10:47 AM IST (Published)

The goods and services tax (GST) has been levied on stock brokers who are earning interest income by lending to clients for betting on the market, reported The Economic Times.

Recommended Articles

View All

The Central Board of Indirect Taxes and Customs (CBIC)  has clarified that brokers without non-banking financial company (NBFC) subsidiaries will have to pay 18% GST on interest earned from margin funding and delayed settlement payments, the report said.
Till now, these firms did not pay GST on such interest income, said the report, adding that the move will add to the cost of transaction for clients and squeeze smaller broking firms that do not own NBFCs.
“Any interest, delayed payment charges charged for delay in payment of brokerage amount, settlement obligations, margin trading facility shall be leviable to GST,” added the report quoting a CBIC circular.
Earlier, GST was only levied to  interest on belated payments alone and interest earned through margin funding was exempted from it, the daily said.
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!

Most Read

Market Movers

View All
Top GainersTop Losers
CurrencyCommodities
CompanyPriceChng%Chng