9911796707
TMI BlogClarification regarding taxability of supply of securities under Securities Lending Scheme, 1997X X X X Extracts X X X X X X X X Extracts X X X X ..... stt Nurpur and Una, H.P 4. The Asstt. Commissioner of State Taxes and Excise, Incharge Distt. Kinnour, H.P. Dated Shimla-9 the 31st Oct., 2019. Madam/Sir, Subject: Clarification regarding taxability of supply of securities under Securities Lending Scheme, 1997 reg. Various doubts have arisen whether the supply of securities under Securities Lending Scheme, 1997 ( Scheme ) by the lender is taxable under GST. 2. Securities and Exchange Board of India (SEBI) has prescribed the Securities Lending Scheme, 1997 for the purpose of facilitating lending and borrowing of securities. Under the Scheme, lender of securities lends to a borrower through an approved intermediary to a borrower und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 102) of the HPGST Act, is extracted as below: - services means anything other than goods, money and securities but includes activities relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged; Explanation. For the removal of doubts, it is hereby clarified that the expression services includes facilitating or arranging transactions insecurities; 4. Securities as defined in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 are not covered in the definition of goods under section 2(52) and services under section 2(102) of the HPGST Act. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under the scheme is classifiable under heading 997119 and is leviable to GST@18% under Sl. No. 15(vii) of Notification No. 11/2017-State Tax(Rate) dated 30.06.2017 as amended from time to time. 5.1 For the past period i.e. from 01.07.2017 to 30.09.2019, GST is payable under forward charge by the lender and request may be made by the lender (supplier) to SEBI to disclose the information about borrower for discharging GST under forward charge. The nature of tax payable shall be IGST. However, if the service provider has already paid CGST / SGST / UTGST treating the supply as an intra-state supply, such lenders shall not be required to pay IGST again in lieu of such GST payments already made. 5.2 With effect from 1st October ..... X X X X Extracts X X X X X X X X Extracts X X X X
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