In frequently asked questions (FAQs) on the applicability of GST on financial services, the government has clarified that they will levy GST on exit loads in mutual funds.
Though there is no clarity on rate at which they levy GST on exit loads, experts believe the government would levy 18% on such loads.
Earlier, AMFI had requested the finance ministry not to levy GST on exit loads. “Government levies GST on exit loads which is not a business income. Exit load is credited to scheme. Hence, we had suggested that the government should allow input credit on exit load GST,” said an AMFI official.
