FAQ on Banking, Insurance and Stock Brokers Sector dated 01-07-2017
General FAQ on GST – GST Frequently Asked Questions (FAQs)
GST
Q. 1. Whether banks are required to capture the details of ATMs in registration certificate as a 'place of business'?
Ans. No. Banks are not required to provide the details of ATMs while applying for registration. For the purposes of registration, ATM on its own does not constitute a place of business, as defined in the CGST Act, 2017.
Q. 2. As per RBI guidelines, Banks can use third party ATMs, Business Corres-pondents (BC), Customer Service Points (CSP) or third party warehouses. Are Banks required to include these third party places also in their GST registration?
Ans. No. Third party places are neither places of business nor fixed establishments from where Banks ordinarily carry on their business. These are independent service providers to the Bank which are subject to GST. Thus, these places are not required to be de
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g issuance of invoice under the CGST Act, 2017, the supplier of services must charge GST in this case. However, where the payment for such supplies has been made (prior to issuance of invoice) as advance before the 1st of July, 2017, the tax would be payable under the law prevalent prior to 1st July, 2017, as the point of taxation had arisen before this date to the extent of advance.
Q. 5. Is it necessary for banks/ insurers to report the details of exempt and non-GST supplies in Table 8 of GSTR-1?
Ans. Yes. In the absence of any specific exemption to the banks/insurers, the information is required to be provided in the said table.
Q. 6. Is it necessary for banks/ insurers to report the details of invoices in Table 13 of GSTR-1?
Ans. Rule 54(2) of the CGST Rules, 2017 provides that in case of an insurer or a banking company or a financial institution, including a non-banking financial company, the tax invoice or any other document in lieu thereof, may not be seria
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r distribution of ISD credit will be determined has been defined to mean the last quarter, preceding the period for which credit is to be distributed, during which turnover for all recipients is available in cases where the turnover in States/Union territories for the previous financial year is not available. Therefore, in such cases, for the quarters after July, 2017 to September, 2017, the State/UT-wise turnover for the purposes of ISD can be determined based on the turnovers for the quarter of July, 2017 to September, 2017. For the months of July, August and September, 2017, the turnover for the month of July, 2017 may be considered for the purposes of distribution of credit.
Q. 9. Is the condition to make payment for the value of supply plus the GST there-on required to be complied with by the recipient to claim the input tax credit where supplies for services are made between distinct persons?
Ans. No, this condition is not required to be complied with by the recipie
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a consolidated statement/invoice/ advice to the customer at the end of the month, with the details of all the charges levied during such month and GST payable thereon.
Q. 11. When a banking company is not required to serially number its invoices/ document for supply of its services, how will the service recipient get credit for GST on the services provided by the bank?
Ans. Under Rule 54(2) of the CGST Rules, 2017 a banking company or a financial institution including a NBFC or an insurer can issue an invoice or any other document in lieu thereof whether or not serially numbered and whether or not containing the address of the recipient but containing other information as mentioned under Rule 46. There is no restriction on the invoice/document being a consolidated invoice/document but it must bear an identification number, which need not necessarily be serially numbered. The recipient of service will get the credit for GST so long as the bank, etc., uploads the details o
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on located in India or services from a person located outside India is required to raise a self-invoice on the date of receipt of such supplies. Banks/insurers may raise a self-invoice, debit note or credit note for each such supply. This invoice, debit note or credit note for each such supply should be reported in the GST return of the month in which the supply takes place as per the provisions of Section 12(3) or 13(3) of the CGST Act, 2017. As the import of goods would be under the cover of a bill of entry, there is no need to raise a self-invoice.
It may, however, be noted that Section 9(4) of the CGST Act, 2017/Section 5(4) of the IGST Act, 2017 has been suspended vide Notification No. 38/2017-Central Tax, as amended from time to time.
Q. 13. For supply of taxable services, can a digitally signed invoice be issued in duplicate, with the original being marked as “Original” and the duplicate copy being marked as “Duplicate”?
Ans. In the context of digitally sign
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constitute a supply for the purpose of the GST law?
Ans. Procedure prescribed under Section 143 of the CGST Act, 2017 and Rule 55 of the CGST Rules, 2017 may be followed in such cases. Movement of equipment for the purpose of repairs, etc., does not constitute a supply. The equipment may be moved by the Banks to the location of the third party service providers and after repairs, the equipment may be moved to a central/regional location for the purpose of programming, encryption, reconfiguration, etc. and thereafter to that place of business from where the equipment had been sent earlier. The equipment can be moved between such locations on the basis of a 'delivery challan'.
Q. 16. Is a “Bill of Supply” to be issued by a bank for exempt services like interest on loans and advances, interse sale or purchase of foreign currency amongst banks?
Ans. As per clause (c) of sub-section (3) of Section 31 of the CGST Act, 2017 read with Rule 49 of the CGST Rules, 2017, ther
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ry audit fees, advertisement and marketing expenses, consultancy fees, etc. The same needs to be appropriately invoiced or distributed through the ISD mechanism to the “distinct persons” who have actually used such services.
Q. 18. Where a bank takes a separate registration for a separate business vertical, say for Bullion business, whether the requirement for reversal of 50 per cent. will also apply to bullion purchased by the Bank?
Ans. In terms of Section 2(94) read with Section 25(4) & (5) of the CGST Act, 2017, a person is required to obtain more than one registration within a State or more than one State shall be treated as a distinct person for each such registration. Section 17(4) of the CGST Act, 2017 is applicable qua each registration and not for the bank as a whole, provided each of the business verticals is separately registered. Therefore, a bank engaged in trading in bullion may not opt for 50 per cent. reversal in respect of its purchases of bullion, where
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f 50% credit would not apply to the tax paid on supplies made by one registered person to another registered person having the same PAN. The non-applicability of 50% reversal is only to the extent of inter-branch services between registered branches having the same PAN in India.
Thus, tax paid on services received from a related person/distinct person located outside India would be liable to 50% reversal.
Q. 21. Whether the provision of Section 18(6) for reversal of input tax credit availed on capital goods be applicable to banks only to the extent of the input tax credit availed?
Ans. Yes. The provisions of Section 18(6) of the CGST Act, 2017 for reversal of input tax credit availed on capital goods would be applicable to banks only to the extent of the input tax credit availed by it. In case the Bank opts to avail input tax credit to the extent of 50% in terms of the second proviso to Section 17(4) of the CGST Act, 2017, reversal of credit would be in proportion to the
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plier of services. Address available on the records of the Bank or Financial Institution or stock broker, which is ordinarily used for communication with the customer, may be considered as the 'place of supply'.
As per Section 12(13) of the IGST Act, 2017 the place of supply of insurance services shall be the location of registered person if services are provided to a registered person and the location of the recipient of services on the records of the supplier of services if services are provided to an unregistered person. Address available on records of the insurance company, which is ordinarily used for communication with the customer, may be considered as the 'place of supply'.
Q. 24. With respect to registered customers, whether the bank/insurance company is required to ascertain the place of consumption of service or whether the Bank can rely upon the GSTIN provided by the Customer?
Ans. The bank/insurance company can rely upon the GSTIN provided by the customer.
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services provided by banks to RBI be also taxable?
Ans. Yes. Services provided by banks to RBI would be taxable as these are not covered by any of the exemptions or excluded from the purview of GST under the CGST Act, 2017 or under the IGST Act, 2017.
Q. 28. Whether a bank/insurer is required to charge GST on the taxable services provided to United Nations or a specified international organiza-tion or, services provided for official use of a foreign diplomatic mission or consular post in India or for personal use or for the use of the family members of diplomatic agents or career consular officers posted therein?
Ans. Yes, the bank/insurer is required to charge GST in such cases. However, as per Section 55 of the CGST Act, 2017, subject to such conditions and restrictions as may be prescribed, such service recipients would be entitled to claim a refund of taxes paid on the notified supplies of services received by them.
Q. 29. Who is liable to comply with GS
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ng to valuation, where services are provided between the branches of the bank.
Q. 31. Are services supplied without consideration to a recipient other than 'related party'/'distinct person' taxable?
Ans. Section 7 of the CGST Act, 2017 read with Schedule I thereto provides that services supplied without consideration to related persons or distinct persons only would qualify as 'supply'. Also import of services by bank from a related person or from any of its establishments outside India in the course or furtherance of business will be supply even if imported without consideration. Therefore, where the services are supplied by a supplier without consideration to an unrelated recipient or a person other than a related or distinct person, the same would not amount to supply and not liable to GST.
Q. 32. Can value of services be enhanced by invoking the CGST Rules in case of services provided by banks at a concessional/ differential rate to a recipient other than 'rela
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33. In the case of banks which are not availing the reversal of ITC at 50%, how should inter-branch services be valued where open market value of services of like kind and quality is not available?
Ans. In such cases, banks can adopt any reasonable basis consistent with Rules 30 and 31 of the CGST Rules, 2017.
Q. 34. Whether a 'derivative' is included within the meaning of 'securities' in Section 2(101) of CGST Act, 2017 and whether derivatives are liable to GST?
Ans. Section 2(101) of the CGST Act, 2017 provides that 'securities' shall have the same meaning as assigned to it in clause (h) of Section 2 of the Securities Contracts (Regulation) Act, 1956 (SCRA). 'Derivatives' are included in the definition of 'securities' under Section 2(h)(ia) of the SCRA. In terms of Section 2(ac) of SCRA, “derivatives” includes –
(A) a security derived from a debt instru-ment, share, loan, whether secured or unsecured, risk instrument or contract for diffe
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e), dated 28th June, 2017, as amended]. However, if any charges or fees are levied for such transactions, the same would be a consideration and would be chargeable to GST.
Q. 36. Would 'future contracts' be chargeable to GST?
Ans. Future contracts are in the nature of financial derivatives, the price of which is dependent on the value of underlying stocks or index of stocks or certain approved currencies and the settlement happens normally by way of net settlement with no actual delivery.
Since future contracts are in the nature of derivatives these qualify as 'securities' as defined in Section 2(101) of the CGST Act, 2017. As securities are neither 'goods' nor 'services' as defined in the CGST Act, 2017, future contracts are not chargeable to GST. But where the future contracts have a delivery option and the settlement of contract takes place by way of actual delivery of underlying commodity/currency, then such forward contracts would be treated as normal supply of good
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e forward rate over the prevailing market rate on the settlement date, the same would be falling within the purview of 'securities' as defined in Section 2(101) of the CGST Act, 2017. As securities are neither 'goods' nor 'services' as defined in the CGST Act, 2017, future contracts are not chargeable to GST. However, if some service charges or service fees or documentation fees or broking charges or such like fees or charges are charged, the same would be a consideration for supply of service and chargeable to GST.
Q. 38. What is the nature of income earned/expended in instruments like repos and reverse repos and is such income taxable under GST?
Ans. Section 45U(c) of the RBI Act, 1934 defines 'repos' as an instrument for borrowing funds by selling securities with an agreement to repurchase the securities on a mutually agreed future date at an agreed price which includes interest for the funds borrowed. Section 45U (d) of the RBI Act, 1934 defines 'reverse repos' as an
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lized form through any of the depositories approved by and registered with SEBI. CPs are normally issued by highly rated companies, primary dealers and financial institutions at a discount to the face value. CDs can be issued by Scheduled Commercial Banks (excluding Regional Rural Banks and Local Area Banks) and All-India Financial Institutions (FIs) permitted by RBI.
Since these are instruments for lending or borrowing money wherein consideration is represented by way of a discount or subscription to CPs or CDs, the same would be covered by the entry relating to 'services by way of extending deposits, loans or advances in so far as consideration is represented by way of interest or discount' and is not liable to GST [serial no. 27 of the table of Notification No. 12/2017-Central Tax (Rate), dated 28th June, 2017, as amended].
Further, promissory note is included in the definition of 'money' as given in clause (75) of Section 2 of the CGST Act, 2017 and hence not liable t
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se of transfer or assignment of a debt would be chargeable to GST, being in the nature of consideration for supply of services.
Q. 41. Would sale, purchase, acquisition or assignment of a secured debt constitute a transaction in money?
Ans. Sale, purchase, acquisition or assignment of a secured debt does not constitute a transaction in money; it is in the nature of a derivative and hence a security.
Q. 42. If any service charges or administrative charges or entry charges are recovered in addition to interest on a loan, advance or a deposit, would such charges be also a part of the exemption?
Ans. No. The services of loans, advances or deposits are exempt in so far as the consideration is represented by way of interest or discount. Any charges or amounts collected over and above the interest or discount would represent taxable consideration and hence liable to GST.
Q. 43. To what extent is invoice discounting or cheque discounting or any other similar
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2017, the value of supply includes, inter alia, interest for delayed payment of any consideration for any supply. Additional Interest charged for default in payment of instalment in respect of any supply, which is subject to GST, will be includible in the value of such supply and therefore would be liable to GST.
Q. 46. Would charges for late payment of dues on credit card outstanding be chargeable to GST?
Ans. Yes. The exemption from levy of GST on interest specifically excludes interest charged on outstanding credit card balances as per Serial No. 27 of the table of Notification No. 12/2017-Central Tax (Rate), dated 28th June, 2017, as amended.
Q. 47. Whether interest on a finance lease transaction is taxable under GST?
Ans. A finance lease is a method of borrowing against the asset. The interest represents the time value of the money expended by the Bank in financing the asset. Services by way of extending deposits, loans or advances in so far as the cons
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be allowed if the incidence of tax has been passed on to another person. If bad debts are on account of deficiency in supply of services, or tax charged being greater than actual tax liability, or goods returned, GST paid on the same is refundable subject to fulfilment of the prescribed conditions. Therefore, GST already paid on bad debts, as used in the trade parlance, cannot be adjusted.
Q. 49. Would imposition of a fine or penalty for violation of a provision of law be a consideration for the activity of breaking the law, making such activity as service?
Ans. No. Fines and penalties are imposed for breaking the law by a person. They are not in the nature of a consideration for an activity and hence, would not constitute a supply of service.
Q. 50. Which services will qualify as services provided to 'account holder' as per Section 13(8) of the IGST Act, 2017?
Ans. The place of supply of services supplied by a banking company located in India to account hol
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llowing are examples of services that are generally not provided by a banking company or financial institution to an account holder (holder of a deposit account bearing interest to the depositor including NRE and NRO account holders) in the ordinary course of business :
(i) financial leasing services including equipment leasing and hire-purchase;
(ii) merchant banking services;
(iii) securities and foreign exchange (forex) broking, and purchase or sale of foreign currency, including money changing;
(iv) asset management including portfolio management, all forms of fund management, pension fund management, custodial, depository and trust services;
(v) advisory and other auxiliary financial services including investment and portfolio research and advice, advice on mergers and acquisitions and advice on corporate restructuring and strategy;
(vi) banker to an issue service.
In
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r than the 'Account Branch' or the 'Home Branch'. It is clarified that the services provided by the other branches are actually services provided to the 'Home branch' and are ultimately billed to the home branch. Thus, the location of supplier in such cases is the Home Branch/Account Branch.
Q. 53. What is the manner of dealing with various services provided by banks and other financial institutions?
Ans. Banks and financial institutions provide a bouquet of financial services relating to lending or borrowing of money or investments in money and other related services. For such services invariably a variety of instruments are used in the financial markets. Transactions in such instruments have to be examined on the touchstone of definition of 'supply' given in Section 7(1) of the CGST Act, 2017 to see whether such transactions would be chargeable to GST. Broadly, the following legal provisions would have a bearing on determining the taxability of such transactions.
The d
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c. Definition of 'securities' includes 'derivatives'. Transactions in instruments like interest rate swaps, and foreign exchange swaps would be excluded from the definition of 'supply' since such instruments are derivatives, being securities, based on contracts of difference. However, any attendant service charges or fees would be chargeable to GST.
Further, services by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount is exempt from the levy of GST.
Q. 54. Are services supplied by a bank to its branch/head-office outside India, which are neither intermediary services nor services to account holders, taxable under GST?
Ans. GST is a destination based consumption tax. Such services provided by a bank or the branch of a foreign bank in India to its offshore branch/head-office, which are neither intermediary services nor services to account holders, are inter-State supply o
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r stewardship services by a related person, what shall be the value of supply when no invoice is raised, no payment is made by recipient or no entry is made in the books of account of the recipient of service? What will be the time of supply?
Ans. As per Rule 28 of the CGST Rules, 2017, the bank may obtain a certificate from the Branch or Office providing the estimated cost of rendering the support. It may be backed by a certificate issued by a chartered accountant or cost accountant.
In such cases, the time of supply shall be the date when such costs are determined or certificate is received and the GST liability on the said costs shall be discharged accordingly. This can be done before the expiry of the quarter during which such supply was made as provided in 2nd proviso to Rule 47 of the CGST Rules, 2017. For this purpose a document may be issued by the entity supplying such services
Q. 57. Is the Nominated Bank, receiving gold on consign-ment basis, required to pay I
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gold (metal) to the jeweller will be deemed to take place at the time of delivery of gold (metal) or at the time when the price of gold (metal) is fixed by the jeweller?
Ans. The Gold (Metal) Loan Scheme approved by the Reserve Bank of India is a means of financing. The banks deliver gold (metal) to the jewellers who appropriate and use the same in the course of their business. The gold (metal) is seldom returned and the jeweller fixes the price of gold (metal) within the stipulated period of 180 to 270 days.
Considering the nature of transaction, the supply of gold (metal) will take place on the date of delivery of gold (metal) to the jeweller. The banks should raise the invoice at the time of delivery of gold (metal) in terms of Section 12 of the CGST Act, 2017. Since the price of gold (metal) is not fixed, banks may issue an invoice wherein the value of the supply may be indicated on the basis of the metal rate in the international or domestic market. As and when the price
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eld in a bank in one State but some services are availed in a different branch of the same bank in another State.
Ans. As per the provisions of Section 12(12) of the IGST Act, 2017, the place of supply of services for a bank is the location of the recipient of the services on the records of the supplier of services. In general, this will be the State in which the account exists. For example, if the account is held in Delhi, and some services are obtained by the account holder in Maharashtra, the place of supply of services will be Delhi (and hence Central tax/State tax or Union territory tax will be chargeable). In such transactions, the branch in Maharashtra will only be a facilitator for providing these services. If the branch in Maharashtra levies any charges on the branch in Delhi for providing this facility, that will be a separate supply between the two branches, it will be chargeable to Integrated tax.
Q. 62. Will GST be charged in transactions, where loan of one b
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oking charges or such like fees or charges are charged, the same would be a consideration for provision of services related to securitization and chargeable to GST.
INSURANCE SECTOR
Q. 66. What is the location of the supplier of service for fund management charges in ULIP policies?
Ans. The fund management charges are charges towards managing and administering the fund. These funds are managed by the Fund Management team. The location of the supplier of service for fund management charges shall be the location/office which manages the fund.
Q. 67. Whether commission paid to insurance agents shall be construed as supplies received under Section 9(3) of CGST Act, 2017? If yes, whether the Life Insurance Company can raise a consolidated invoice for such commission payments?
Ans. Sr. No. 7 of Notification No. 13/2017-Central Tax (Rate), dated 28th June, 2017 as amended covers supplies received from Insurance Agents and provides for the Insurance Company to pay
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with in the case of Life Insurance Premium where the conditions of export of services are satisfied before or at the time of supply of the Life Insurance Service?
Ans. Yes. As per Section 16(3) of the IGST Act, 2017, read with Rule 96A of the CGST Rules, 2017, an exporter is required to submit a Letter of Undertaking or Bond in case the export of service is made without payment of integrated tax.
Q. 70. What would be the time of supply of life insurance services?
Ans. Insurance policies are contracts for indemnifying any loss suffered by the policyholder. The policyholder is required to pay a premium at the time of inception of the policy. Renewal premiums are required to be paid on periodical basis during the tenure of the policy. For renewal of the policies the policyholders are allowed grace period ranging from 15 days to 30 days in accordance with the IRDA (Protection of Policyholders' Interests) Regulation, 2002.
The time of supply of life insurance services
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ct, 2017 read with Rule 117(1) of the CGST Rules, 2017.
Q. 73. 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?
Ans. In the case of issuance of Master/Group Policy to a registered person where the premium charged is a single premium and not segregated based on the beneficiaries of the insurance policies, the place of supply for such policy will be the location of the registered person paying the premium.
Q. 74. 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?
Ans. As per the proviso to Section 2(31) of the CGST Act, 2017, a deposit given in respect of the supply of goods or services or both shall not be considered as payment made for such supply unless the supplier a
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e conditions of pure agent as provided in Rule 33 of the CGST Rules, 2017 are met. If not, then valuation will be done as per Section 15 of the CGST Act, 2017 read with Rule 27 of CGST Rules, 2017.
Q. 78. Is brokerage earned in stock broking service liable to Goods and Services Tax?
Ans. Yes. Since the stock brokers are engaged in the business of supplying the stock broking service, appropriate GST is payable on the same.
Q. 79. Can a person take voluntary registration under the Act?
Ans. 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 apply to such person.” Therefore, any person may choose to get voluntary registration under the Act.
Q. 80. Is GST leviable on interest/delayed payment charges charged to clients for debit for settlement
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okers arrange the supply of securities between two or more persons, stock brokers would be covered by the definition of “intermediary”.
Q. 83. Would sub-brokers/ Authorized Persons fall in the definition of “agent” under Section 2(5) of the CGST Act, 2017? What would be the registration requirement for sub-brokers/Authorized Persons in the context of the Goods and Services Tax Regime?
Ans. As per Stock Brokers and Sub-brokers Regulation, 1992 issued by SEBI, a “sub-broker” means “any person, not being a member of stock exchange, who acts on behalf of a stock broker as an agent or otherwise for assisting the investors in buying, selling or dealing in securities through such stock brokers”. It is, therefore, apparent that the sub-broker may not only be providing services to the stock broker but may also be providing services to the clients and receiving consideration from both. Thus, in such a scenario where the sub-broker is providing services both to the broker and the in
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on is engaged in business through an agent, by whatever name called.
In case of operations of a stock broker, it is required by law that all transactions would be via screen based trading on the Stock Exchanges. Therefore, the following would be the “place of business” in case of stock brokers :
(i) All the branches of the stock broker where the Stock Exchange Trading terminals are located and where trade is carried out on behalf of clients;
(ii) Main office/Head office/Registered Office/Branch office where back office operations are carried out including issuing of bills/contracts/tax invoices/ account statements to the clients.
In case of sub-brokers'/Authorised Person office, where the premises are neither owned by the stock broker nor rented/ leased in favour of the stock broker and there are no employees on the payroll of the stock broker in such an office, then such premises shall not be considered a place of b
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ns. Under Section 19(1) of the IGST Act, 2017 “a registered person who has paid integrated tax on a supply considered by him to be an inter-State supply, but which is subsequently held to be an intra-State supply, shall be granted refund of the amount of integrated tax so paid in such manner and subject to such conditions as may be prescribed”.
Under Section 19(2) of the IGST Act, 2017 “a registered person who has paid Central tax and State tax or Union territory tax, as the case may be, on a transaction considered by him to be an intra-State supply, but which is subsequently held to be an inter-State supply, shall not be required to pay any interest on the amount of integrated tax payable”.
Therefore, in case a registered person has paid Integrated tax instead of Central tax and State tax or Union territory tax, then he shall be granted refund of the amount paid as Integrated tax and he will have to pay Central tax and State tax or Union territory tax. Further, no interest wil
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consideration for the said supply in his books of account.
Q. 88. Can the stock broker continue to issue bills and contracts under the normal Stock Exchange mechanism and issue a monthly tax invoice for the purpose of Goods and Services Tax?
Ans. The stock broker can issue bills and contracts under the normal Stock Exchange mechanism mentioning the GST amount but will have to issue a tax invoice as envisaged under Section 31(2) of the CGST Act, 2017 read with Rule 47 of the CGST Rules, 2017.
Q. 89. What is considered as 'securities' under the Goods and Services Tax Act? Are they taxable under GST?
Ans. Section 2(101) of the CGST Act, 2017 defines “securities” to have the same meaning as assigned to it in clause (h) of Section 2 of the Securities Contracts (Regulation) Act, 1956.
Section 2(52) of the CGST Act, 2017 defines “goods” to mean every kind of movable property other than money and securities but includes actionable claim, growing crops, grass and t
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ct, 2017 defines “business vertical” to mean “a distinguishable component of an enterprise that is engaged in the supply of individual goods or services or a group of related goods or services which is subject to risks and returns that are different from those of the other business verticals.
Explanation. – For the purposes of this clause, factors that should be considered in determining whether goods or services are related include –
(i) the nature of the goods or services;
(ii) the nature of the production processes;
(iii) the type or class of customers for the goods or services;
(iv) the methods used to distribute the goods or supply of services; and
(v) the nature of regulatory environment (wherever applicable), including banking, insurance, or public utilities”.
It is the choice of the taxable person to build all the services provided in one vertical or separate verticals based o
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