13.9What is GST on brokerage?
1What is it?
GST at 18% is charged on brokerage, exchange transaction charges and SEBI fees (not on STT or stamp duty).
2Why does it exist?
Brokerage and exchange services are taxable services under GST.
3Calculation
GST = 18% × (Brokerage + Exchange charges + SEBI fee)
- Brokerage ₹20 + exchange ₹3 + SEBI ₹0.10 = ₹23.10.
- GST = ₹4.16.
GST ≈ ₹4.16.
4Quick revision
- 18% on services.
- Not on STT or stamp duty.
5Knowledge check
Q1. GST rate on brokerage?Show answer
18%.
Q2. Is GST charged on STT?Show answer
No.
Q3. Brokerage ₹40. GST?Show answer
₹7.20.