Market infrastructure institutions, which include stock exchanges, and persons dealing in the securities market will need to pay a GST of 18 per cent on the fees charged by the regulator Sebi.
The new tax charge may be effective from monday, the securities and exchange board of india (sebi) said in a circular.
“All the market infrastructure institutions, companies who have listed/are intending to list their securities, other intermediaries and persons who are dealing in the securities market are hereby informed that the fees and other charges payable to Sebi shall be subject to GST (Goods and Services Tax) at the rate of 18 per cent with effect from July 18, 2022,” it stated.
This comes after the gst council remaining month endorsed to withdraw the exemption granted to services with the aid of sebi and the same turned into notified on july 13.
stock exchanges, clearing groups and depositories come underneath market infrastructure institutions.