4.19What are STT, GST, stamp duty and exchange charges?
Time-sensitive: Equity STT and stamp duty rates as of November 2026. Exchange charges vary by exchange and are revised from time to time. Rules and rates change, so check the official source before acting.
1What is it?
Beyond brokerage, every trade carries statutory charges set by the government, exchanges and SEBI.
2Why does it exist?
They fund taxes and market infrastructure. You can’t avoid them, but you should know them.
3Diagram
| Charge | Who levies | Equity delivery | Equity intraday |
|---|---|---|---|
| STT (Securities Transaction Tax) | Government | 0.1% on buy and sell | 0.025% on sell only |
| Exchange transaction charge | NSE/BSE | ≈0.003% of value (varies) | ≈0.003% of value |
| SEBI turnover fee | SEBI | ₹10 per crore | ₹10 per crore |
| Stamp duty | State (collected centrally) | 0.015% on buy | 0.003% on buy |
| GST | Government | 18% on brokerage + exchange + SEBI fees | Same |
| DP charge | Depository + broker | Flat per scrip on sell day | None |
4Calculation
Delivery buy + sell of ₹10,000 each way (approx.)
- STT: 0.1% × ₹20,000 = ₹20
- Stamp duty: 0.015% × ₹10,000 = ₹1.50
- Exchange charges ≈ 0.003% × ₹20,000 ≈ ₹0.60; GST on that ≈ ₹0.11
- DP charge on sell ≈ ₹15–20 incl. GST
- Brokerage: ₹0 at many discount brokers
Total ≈ ₹38–43 on a ₹10,000 round trip (approximate).
5Quick revision
- STT, exchange fees, SEBI fee, stamp duty, GST and DP charges.
- STT is highest in delivery (0.1% each side).
- The contract note lists every charge.
6Knowledge check
Q1. Who receives STT?Show answer
The Government of India.
Q2. On which side is stamp duty charged?Show answer
The buy side.
Q3. Where can you see every charge for your trade?Show answer
On the contract note.