--- title: "Share Market New GST Rate 2026: 18% Rate on Stock Trading" description: "New GST rate on share market services in 2026 is 18% on brokerage, DEMAT accounts and trading. Busy helps you apply the right GST rate on every invoice." canonical: "https://busy.in/gst-rates/share-market/" author: "Vineet Goyal" published: "2025-05-19T09:43:37.000Z" category: "GST Rates" --- - The **gst on share trading** applies to taxable services such as brokerage fees, - Demat account maintenance charges, and DP transaction charges. These services generally attract **18% GST**. - Government levies such as **STT and stamp duty are not subject to GST**. GST applies only to taxable service components provided by brokers and other market intermediaries. - GST is charged on the service component, such as brokerage, and not on the full share transaction value. - Retail investors usually pay small GST amounts per trade, while frequent traders may see a higher impact due to increased transaction volumes. - ITC on GST paid for trading-related services may be available to eligible businesses, subject to applicable GST conditions. # New GST on Share Market Transactions: Services and Charges 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. ## **New GST Rate on Share Trading Charges in India** The applicable GST rates for common share trading-related services after **22 Sep 2025** are shown below. No major rate change has been introduced for these taxable services. ## New GST on Share Trading: Which Charges Attract GST? | Charge Type | New GST Rate (After 22 Sep 2025) | Old GST Rate (Before 22 Sep 2025) | Remarks | | --- | --- | --- | --- | | Brokerage fee (buy/sell order) | 18% | 18% | Applied on brokerage/service value, not the full trade value | | DP charges | 18% | 18% | Applies to taxable depository participant services | | Annual Demat maintenance charges | 18% | 18% | Applies to taxable account maintenance services | | Exchange/transaction service charges | 18% | 18% | Taxable where charged as part of the service value | | STT and stamp duty | No GST\* | No GST\* | Statutory levies; treatment depends on valuation/pure-agent conditions | \*CBIC clarifies that GST is not payable by stock brokers on recoveries such as STT/stamp duty where the pure-agent conditions under Rule 33 are satisfied. ## **New GST on Stock Market in India: Who Pays What?** | Service / Charge | Paid By | New GST Rate (After 22 Sep 2025) | Old GST Rate (Before 22 Sep 2025) | | --- | --- | --- | --- | | Brokerage charges | Trader/Investor | 18% | 18% | | Demat account AMC | Account Holder | 18% | 18% | | DP transaction charges | Account Holder | 18% | 18% | | Exchange/transaction service charges | Trader/Investor | 18% | 18% | | STT and stamp duty | Trader/Investor | No GST\* | No GST\* | Live Demo Available Today ## Record All Share Market Brokerage Transactions in Day Book Trusted by 6,00,000+ Users 4.6 Google Rating \* No credit card required ## How GST Is Calculated in a Trade Let’s say you buy shares worth ₹1,00,000 and your broker charges ₹20 as brokerage: - GST = 18% of ₹20 = ₹3.60 - Total charges = ₹20 (brokerage) + ₹3.60 (GST) = ₹23.60 - Other charges like STT, stamp duty, etc., are applied separately GST is charged only on the **taxable service component, such as brokerage**, and not on the total value of shares bought or sold. ## GST on Stock Market Services: Impact on Investors - Retail investors pay small amounts per trade as GST - High-frequency traders may see a significant cumulative impact - No ITC available unless trading is a registered business activity ## Old GST on Stock Market in India: Who Pays What? | 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. ## About the author **Vineet Goyal** I am a chartered accountant with over 14 years of experience. I understand income tax, GST, and balancing financial records. I analyze financial statements and tax codes effectively. However, I also have a passion for writing, which is different from working with numbers. Recently, I started writing articles and blog posts. My goal is to make finance easier for everyday people to understand. ## Frequently asked questions ### Is GST applicable to share trading in India? Not on the **trade itself**, but yes on services like **brokerage**, Demat charges, and AMC. ### What is the GST on share trading brokerage? **18%** GST is applied on the **brokerage amount**, not on the full trade value. ### Can I claim Input Tax Credit on trading-related GST? Only if trading is part of your **registered business** activity under GST. ### Are government charges like STT and stamp duty taxed under GST? No. **STT**, **stamp duty**, and SEBI fees are **outside GST** scope. ### Is GST charged on the total value of shares traded? No. GST is not charged on the value of shares bought or sold. 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