Why is GST being levied on SEBI charges?

Why is GST being levied on SEBI charges?

Every time you buy or sell stocks, a small percentage of the transaction value goes to SEBI. This money helps SEBI do its job better, like paying for technology to watch the market closely. These charges have been around since January 1, 2007.

SEBI Charges and GST: A Change in Rules

1.     Old Rule (Before July 18, 2022):

o   You paid SEBI charges when trading.

o   But no GST was applied to these charges.

o   It was like buying a notebook: You pay for the notebook without any extra tax.

2.     New Rule (From July 18, 2022):

o   You still pay SEBI charges.

o   But now, you also pay 18% GST on these charges.

o   It's like buying that notebook, but now there's an 18% tax. 

The Change Made

·        The government sees SEBI's work as a service.

·        Just like you pay GST for a haircut (a service), now you pay GST for SEBI's service of watching over the market.

·        SEBI announced this change in a circular, which is like an official letter to all stock exchanges.

Remember:

·        This change is for everyone, with no exceptions.

·        It started on July 18, 2022.

·        Always check your trading bill to see all charges.


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