In the course of stock broking, funds are received from the clients as margin money for trade. Would the same be treated as consideration?
In the context of stock broking, funds/ securities are provided by the clients to the stock brokers in advance of the potential orders/ trades that would lead to margin/ settlement obligations.
All such advances will fall in the category of deposit under the proviso to section 2(31) of the CGST Act, 2017 and thus will not be considered as payment made for such supply unless the stock broker
applies such deposit as consideration for the said supply in his books of accounts.