SEBI Turnover Fees to Attract 18% GST from April 2025: What It Means for Traders
Starting April 3, 2025, the SEBI turnover fees for all major trading segments will include 18% GST, as per the Securities and Exchange Board of India’s earlier notification dated July 18, 2022. This move brings clarity to the tax structure around market transaction charges and aligns regulatory fee collections with the indirect tax framework under GST law.
The new structure applies across all segments:
- Equity (Cash)
- Derivatives (Futures & Options)
- Currency Derivatives
- Commodity Derivatives
- Interest Rate Derivatives
- New Debt Segment
- Repo Market
- Electronic Gold Receipts (EGR)
🔍 Why This Change Matters: Legal & Regulatory Perspective
This inclusion of GST under Section 9(1) of the CGST Act, 2017, which taxes services provided by a regulatory authority, was clarified earlier by the Authority for Advance Ruling (AAR) in SEBI vs. Sutherland Global Services Pvt Ltd, which established that SEBI services are “taxable supplies.” SEBI, while functioning as a market regulator, is also deemed to be providing services for which it charges a fee.
💼 What’s Changing for Trading Members?
- Turnover Fees Now GST-Inclusive:
All turnover fees will now reflect an 18% GST, raising the total cost of transactions.- Payment Cycle Update:
SEBI will debit the turnover fees plus GST from the settlement accounts or exchange dues accounts of trading members on the 3rd working day of each month, starting April 3, 2025.- View & Download Turnover Invoices:
- Turnover Report Path:
EXTRANET > EQ > Transaction- Invoices Path:
EXTRANET > Periodic files > 2025 > ZIP > SEBIMAR2025.Member_Code- Separate Debits for Clarity:
Charges will appear as separate debits with narration for better audit and reconciliation.📊 How Will This Impact Traders & Investors?
Category Before GST Inclusion After GST Inclusion Turnover Fee (Example) ₹1,000 ₹1,180 (Incl. 18% GST) Compliance Complexity Moderate Slightly higher Audit Trail Manual Reconciliation Clear narration in ledger Cost to Traders Lower Higher
📌 Key Takeaways for Traders & Businesses
- Brokers should update their accounting systems to automatically reconcile GST on SEBI fees.
- Businesses and trading desks must ensure sufficient funds in their settlement accounts by the 3rd working day of every month.
- Chartered Accountants advising traders should reconfigure GST ledgers to accommodate these new entries and verify invoice compliance.
- Freelancers or HNIs dealing in high-frequency trading should consider this change while calculating effective transaction costs.