The advent of a goods and services tax (GST) would not result in any changes in the tax structure in the securities market. There were concerns that the structure would get altered as the definition of goods in the proposed GST model includes ‘securities’. Sources say the government plans to drop ‘securities’ from the definition and a clarification in this regard could be issued soon. Under the indirect tax legislation, securities are considered as activity of sale and purchase and haven’t been subjected to any service tax and value-added tax. Currently, share transactions attract securities transaction tax (STT), Krishi Kalyan cess and Swachh Bharat cess, apart from exchange and Sebi levies.
Business Standard 14th November 2016
