Entities dealing in the securities market will need to pay a GST of 18% on the fees charged by the Securities and Exchange Board of India (Sebi). The new tax rate is effective from Monday, the market regulator said in a circular.
The GST Council in its meeting held on June 28 and June 29 had
“This would result in additional costs for companies and lead to cash flow issues for some. Companies from certain sectors may not even be able to take the benefit of input tax credit on this,” said Yashesh Ashar, partner, Bhuta Shah & Co.
