Levy of Goods Services Tax (GST) on the fees payable to SEBI

The Securities and Exchange Board of India (SEBI) is a regulatory body that oversees the functioning of the securities market in India. It regulates the securities market by protecting the interests of investors, promoting the development of the securities market, and regulating the market intermediaries. The Securities and Exchange Board of India (SEBI) levies certain fees on market intermediaries such as brokers, depositories, and mutual funds. These fees are collected to cover the regulatory expenses incurred by SEBI in regulating the securities market. However, the question that arises is whether the fees payable to SEBI are subject to the levy of Goods and Services Tax (GST). The answer to this question lies in the definition of ‘services’ under the GST law. As per the GST law, services mean anything other than goods, money, or securities.

What is SEBI

SEBI is a regulatory body that provides services to market intermediaries. Therefore, the fees payable by market intermediaries to SEBI can be considered as payment for the services provided by SEBI. The next question that arises is whether the fees payable to SEBI are subject to GST. As per the GST law, any supply of services, unless specifically exempted, is subject to GST. However, the GST law also grants certain exemptions from the levy of GST. One of the exemptions granted by the GST law is in relation to services provided by a regulatory body to its members. The exemption provided under the GST law states that any services provided by a regulatory body to its members are exempt from GST. As SEBI is a regulatory body that provides services to market intermediaries, the fees payable by market intermediaries to SEBI can be considered as payment for the services provided by SEBI to its members. Therefore, the fees payable to SEBI by market intermediaries are exempt from GST.

Conclusion

In conclusion, the fees payable by market intermediaries to SEBI for the services provided by it are exempt from the levy of GST. This exemption is granted as SEBI is a regulatory body that provides services to its members, which includes market intermediaries. The Securities and Exchange Board of India (SEBI) is a regulatory body that oversees the functioning of the securities market in India. The fees payable to SEBI by market intermediaries for the services provided by it are exempt from the levy of Goods and Services Tax (GST) as per the exemption granted under the GST law.FinanceGST on SEBI fees