What is GST charged on?
GST applies to services rendered by your broker and the exchange — not on the financial transaction value itself. Specifically:
- Brokerage: 18% GST on the brokerage amount. If brokerage is ₹20, you pay ₹20 + ₹3.60 = ₹23.60.
- Exchange transaction charge: 18% GST on the exchange fee. If exchange fee is ₹2.97, GST is ₹0.53.
- DP charge: 18% GST is typically included in the quoted DP charge (e.g., Zerodha's ₹15.34 = ₹13 + 18% GST).
GST is not charged on STT, stamp duty, or the trade value itself.
GST on a ₹50,000 delivery trade at Zerodha
- Brokerage: ₹0 (delivery is free) → GST: ₹0
- Exchange charge: ₹2.97 → GST: ₹0.53
- DP charge: ₹15.34 (includes GST already)
Total GST on this trade: ₹0.53. Minimal because Zerodha charges zero delivery brokerage.
At HDFC Securities (0.5% brokerage): brokerage per round-trip = ₹500, GST on brokerage = ₹90. That's ₹90 just in GST on brokerage — before counting the exchange fee GST.