GST on trading charges: what the 18% applies to
GST on a trade is 18%, but only on service fees. Here is exactly what it applies to, what it skips, and why traders do not pay GST on the shares they trade.
Where GST applies
GST at 18% is charged on the services involved in a trade, not on the trade itself. On a contract note it is calculated on three items:
The same 18% also applies to DP charges, account maintenance charges, pledge fees and most other broker service fees, though these often appear on your ledger rather than the contract note.
Where GST does not apply
- STT and CTT, which are taxes, not services.
- Stamp duty, also a tax.
- The value of the shares or contracts. Securities are excluded from the definition of goods and services under the GST law, so buying or selling shares does not attract GST.
Worked examples
| Trade | Brokerage | Exchange + SEBI | GST at 18% |
|---|---|---|---|
| Intraday, ₹1 lakh each way, ₹20 per order | ₹40.00 | ₹6.37 | ₹8.35 |
| Delivery, ₹50,000 → ₹52,000, Zerodha | ₹0.00 | ₹3.23 | ₹0.58 |
| Nifty futures, 1 lot, 25,000 → 25,100 | ₹40.00 | ₹62.85 | ₹18.51 |
| Nifty options, 1 lot, ₹150 → ₹180 | ₹40.00 | ₹7.64 | ₹8.58 |
On zero-brokerage delivery trades GST is tiny. On intraday and options trades, GST on brokerage is often the third-largest charge.
GST for traders and investors
Individuals who buy and sell shares, F&O or commodities through a broker do not charge or pay GST on the trades themselves, because securities are not goods or services under GST. You do not need GST registration simply because you trade. The GST you see is what your broker charges you on its fees, and it cannot be claimed back unless you are registered and use the service in a taxable business. Income tax on trading gains is a separate matter.
GST on DP charges and AMC
Brokers quote DP charges either including GST (Zerodha: ₹15.34, which is ₹13 plus ₹2.34 GST) or excluding it (Groww, Upstox, Angel One: ₹20 + GST = ₹23.60). Account maintenance charges are also quoted plus GST, for example ₹300 + GST a year.
Checking GST on a contract note
Add brokerage, exchange transaction charges and the SEBI fee, then multiply by 0.18. The result should match the GST line, sometimes split into CGST and SGST (9% each) or shown as IGST (18%) depending on your state and your broker’s. Check any trade in the brokerage calculator.
Sources: NSE and BSE transaction charge circulars, the Finance Act 2026 (STT), SEBI fee schedule, the Indian Stamp Act as amended in 2020, and the published rate cards of Zerodha, Groww, Upstox and Angel One, checked in October 2026.
Frequently asked questions
What is the GST rate on brokerage?
GST on brokerage is 18%. It is also charged on exchange transaction charges and the SEBI fee.
Is GST charged on share trading?
No GST is charged on the value of shares or derivatives traded. GST applies only to the broker’s and exchange’s service fees.
Do traders need GST registration?
Not for trading securities. Securities are outside the scope of GST, so buying and selling shares or F&O does not by itself require GST registration.
Is GST charged on STT?
No. STT and stamp duty are taxes, so no GST is charged on them.
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Written and maintained by Mantu Kumar
Mantu builds TradeProfy’s calculators and checks every statutory rate against exchange circulars, broker rate cards and the Finance Act. He is not a SEBI-registered adviser, so TradeProfy explains costs and maths but never tells you what to trade.
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