Impacts & Opinions


Multiple Registrations :

Currently there are centralized registration provisions under Service tax that mean provider of services can render services from any place in India after getting registered once .

I n GST regime centralized registration will not be available as the dealer or the service provider needs to get registered with each state from where they are providing services.

Rate of tax

In GST, services by stock broker are taxed at 18% GST. This rate is higher by 3% from the current service tax rate of 15%. This may make stock broker services more expensive, particularly for retail customers.

Input Tax Credit:

Under the current scenario the service sector is unable to claim of VAT a nd sales tax incurred but in GST regime service sector company able to take credit of Vat/CST/ Excise duty. This is likely to change in the favour of the service providers .

Place of Supply of stock broking services:

Under the present regime , stock broking services qualify as an 'intermediary' and accordingly, the place of provision of service is the location of the service provider. Hence, in case of FIIs/ FPIs, irrespective of where the customers are located, the place of provision of service is in India and liable to service tax.

In GST Law specifies the place of supply of services in case of stock broking services as:

  • in cases where the services are linked to the account of the receiver, the location of the service receiver on record of the service provider; and
  • where the service is not linked to the account of the receiver, the location of the service provider .

Note : In GST Law does not have any concept of 'intermediary'. In view of this, supply of services to FIIs/ FPIs w ould be where such clients are located, i.e. outside India. This is a welcome change for the stock broking sector.


Presently, service tax law extends to whole of India excluding the State of Jammu and Kashmir (J&K). However, the GST Law does not have any specific exclusion for J&K . Hence, it seems the operations in J&K would be subject to GST.

Invoicing under GST

Tax Invoice Bill of Supply
Who has to issue? Taxable Supplier who is supplying Taxable goods or Taxable Services. Supplier of Exempt Goods or services and Composition Tax payer
When need not be issued Need not issue a Tax Invoice if the value of the goods or services supplied is less than ₹ 200/ - and recipient is unregistered .(Need to prepare one aggregate Invoice for each day) Need not issue a bill of supply if the value of the goods or services supplied is less than ₹ 200/ - .(Need to prepare one aggregate BOS for each day)
Can Input Tax claimed? Input Tax Credit(ITC) can be claimed based on Tax Invoice Input Tax Credit(ITC) cannot be claimed based on 'Bill of Supply'

Changes required in Contract note:

In current regime we need to mention in invoice ; Service tax, Swachh bharat cess and Krishi kalayan cess but in GST CGST, SGST, IGST and UTGST needs to be mention in invoice.

Refund under GST

Presently, the time limit for filing a refund claim of CENVAT credit used for export of servi ces is one year. In GST Law, the time limit filing a refund of unutilised credits has been extended to 2 years. This is a welcome provision, as this will benefit the industry at large.