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Is brokerage earned in stock broking service liable to Goods and Services Tax? Yes. Since the stock brokers are engaged in the business of supplying
the stock broking service, appropriate GST is payable on the same.
Is GST leviable on interest/ delayed payment charges charged to clients for debit for 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 nature of
extending loans or advances and are covered by entry No. 27 of notification No.12/2017- Central Tax
(Rate) dated 28th June, 2017. (Amended as on 27.12.2018)
Do stock brokers fall in the definition of “intermediary” under section 2(13) of the IGST Act,
2017? Yes. Since stock brokers arrange the supply of securities between two
or more persons, stock brokers would be covered by the definition of “intermediary”.