BUSY is a simple, yet powerful GST / VAT compliant Business Accounting Software that has everything you need to grow your business.
If you trade in stocks, you’ve probably noticed a small GST charge on every buy and sell order. While the profit or loss on shares isn’t taxed under GST, the services you use during trading are. This blog breaks down the gst on share market transactions, which charges are affected, and how it impacts retail investors and traders.
| Charge Type | GST Rate | Remarks |
|---|---|---|
| Brokerage fee (buy/sell order) | 18% | Applied on brokerage amount, not full trade value |
| DP charges (NSDL/CDSL) | 18% | For Demat debit/credit services |
| Annual maintenance charges | 18% | Yearly charge for holding a Demat account |
| SEBI/Exchange fees | No GST | These are statutory fees, exempt from GST |
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Let’s say you buy shares worth ₹1,00,000 and your broker charges ₹20 as brokerage:
GST is only applied to the service component, not the actual trade value.
| Service | Paid By | GST Applicability |
|---|---|---|
| Brokerage charges | Trader/Investor | 18% on brokerage |
| Demat account AMC | Account Holder | 18% |
| DP transaction charges | Account Holder | 18% |
| Government levies (STT, stamp duty) | Exempt | No GST |
Understanding the gst on share market transactions helps you plan your trading expenses better and ensures transparency in all stock-related services.
BUSY is a simple, yet powerful GST / VAT compliant Business Accounting Software that has everything you need to grow your business.