Latest GST Update: Securities Market Personnel to Pay GST Rate @18% on SEBI’s Fee

GST Update

GST exemptions granted to the SEBI services withdrawn with effect from 18th July 2022. 

According to the latest circular issued by the SEBI, “all the market infrastructure institutions, companies who are listed or intend to list their securities in stock exchanges, other intermediaries and person dealing in the securities market are hereby informed that the fees and the other charges payable to SEBI shall be subject to the latest GST rates of 18% with effect from July 18, 2022.” 

The market infrastructure institutions in India feature stock exchanges that will be impacted from the new GST rates.

Major depositories are also tagged in the Market Infrastructure Institutions (MIIs) 

  • The Central Depository Service Ltd. 
  • The National Securities Depository

The GST Council meeting notified the SEBI on 13th July 2022 regarding the recommended withdrawal of the exemptions granted to SEBI services. 

Additional Updates Concerning New GST Rates 

The GST Council also undertook a series of decisions regarding the prices of certain goods and services. The new GST rate will impact the price of the featured products. Some products are set to become more expensive while prices of others will depreciate owing to the latest GST rates

Which Products and Services Will the New GST Rates Impact?

Items  New GST Rate Old GST Rate
Labeled food items like atta, curd, and paneer 5%
Tetra packs and on the check issuance fees requested by the bank. 18%
Hospital rooms whose rental charges exceed INR 5,000 5%
roducts such as printing, writing, and drawing ink, cutting knives, paper knives, pencil sharpeners, LED lamps, and drawing and marking out instrument 18% 12%
Solar heaters 12% 5%
Work contracts for bridges, roads, metro, railways, crematoriums and treatment plants  18% 12%

Products and Services Set to Go Cheaper 

  • Tax deducted on ostomy appliances from 12% to 5%. And also on ropeway transportation. 
  • Taxes levied on trucks and goods carriage rental would drop down to 12% from 18%
  • An exemption on GST is provided to air travelers commuting to northeastern states and Bagdogra. However, the deductions are valid only to the economy class.  
  • The new GST rates also provide concessions of 5% on electric vehicles (EV). 

The new GST rates will impact the prices of various mass consumption products. The consumers will have to shell out more than earlier on the products listed above. However, it is to be noted that these updates are exclusive to pre-packed and pre-labelled items. Not when these products are sold loose. The exemptions provided to EV vehicles further showcases the goverments’ commitment push green energy industry in the country. The following updates are made to streamline the inverted tax structure and curb tax-leakages.

Tushar Gautam Tushar Gautam is a Content Writer who has had the pleasure of writing for diverse mediums and topics. You’ll find him planning an itinerary for his next trip in his spare time, which may or may not come to fruition.
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