GST payable on reimbursement of delayed payment charges under SEBI regulation: AAR

In re SPFL Securities Ltd. (GST AAR Uttar Pradesh)

Question – Taxability on delayed payment charges on reimbursement of amount by client to applicant, where client failed to pay amount paid to stock Exchanges for purchase of securities with T+1 (Trading day plus one day) under SEBI regulation norms and deducted by Stock Exchange from Applicant’s account being purchase consideration of securities which are neither goods nor services under GST.

Answer- We observe that delayed payment charges squarely get covered under GST f

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