What will be the “place of supply of services” in case of stock brokers? In case of stock broking, the details of the address of the client are required to be updated with the Stock Exchange as part of the “Unique Client Code” details. Therefore, in case of domestic supplies of such services, address on… Read More »
Is GST leviable on interest/ delayed payment charges charged to clients for debit for settlement obligations/ margin trading facility? Any interest/ delayed payment charges charged for delay in payment of brokerage amount/settlement obligations/margin trading facility shall be leviable to GST. Q 80 of GST FAQs on Financial Services Sector published by CBIC
Can a person take voluntary registration under the Act? Section 25(3) of the CGST Act, 2017 states that “a person, though not liable to be registered under section 22 or section 24 of the CGST Act, 2017 may get himself registered voluntarily, and all provisions of this Act, as are applicable to a registered person, shall… Read More »
Is brokerage earned in stock broking service liable to Goods and Services Tax? Yes. Since the stock brokers are engaged in the business of supplying the stock broking service, appropriate GST is payable on the same. Q 78 of GST FAQs on Financial Services Sector published by CBIC
In the case of stock broking, whether stamp duty or securities transaction tax or other Central or State taxes would be considered as a part of the value of supply as prescribed under Section 15 of the CGST Act, 2017, for levy of GST? GST is not payable by the stock brokers on these recoveries as… Read More »
Whether the service provided by the re-insurance company to an insurer will be treated as a supply? The service of re-insurance falls within the scope of supply, and is chargeable to GST. Q 76 of GST FAQs on Financial Services Sector published by CBIC
Whether ITC will be allowed on motor garage services used by insurance company for claim settlement? Yes, ITC will be allowed on services of motor garage used by an insurance company for claim settlement. Q 75 of GST FAQs on Financial Services Sector published by CBIC
What is the time of supply of services for deposits and advances in cases of the recipient issuing a bank guarantee or making a deposit before assumption of risk and issuance of a policy? As per the proviso to Section 2(31) of the CGST Act, 2017, a deposit given in respect of the supply of goods or… Read More »
In the case of group insurance policies, a Master Policy is issued; the beneficiaries of the Master Policy may be located in more than one State. In such cases, what will be the place of supply of services? In the case of issuance of Master / Group Policy to a registered person where the premium charged is a… Read More »
Can the input tax credit of Krishi Kalyan Cess be carried forward? No. It is not permitted in terms of section 140(1) of the CGST Act, 2017 read with Rule 117(1) of the CGST Rules, 2017. Q 72 of GST FAQs on Financial Services Sector published by CBIC