Mutual funds will now have to pay GST on their ARN/EUIN registration and renewal fee from April 1, 2018.
In an email communication, AMFI has said that while the existing fee structure for new ARN registration and renewal will remain unchanged, the applicable GST on ARN/EUIN registration and renewal will be levied on distributors. Simply put, AMFI has hiked the ARN/EUIN registration and renewal fee by the extent of GST i.e. 18% of the total fee. So far, such fees were inclusive of GST.
“The current fee structure for ARN Registration/Renewal has been in force since November 2012, when it was revised downwards, while the EUIN Registration/Renewal fees structure was last rationalised in November 2015. The fee structure was therefore reviewed by AMFI, and it has been decided that while the existing fee structure shall be continued without any change, the applicable GST on ARN/EUIN Registration/Renewal fees shall be levied/collected from the applicants/ARN/EUIN holders, additionally, effective from April 01, 2018.”
So far, distributors needed to pay ARN registration fee of Rs.3,000 and ARN renewal and EUIN registration/renewal fee of Rs.1,500. However, distributors will now be required to pay an additional fee of Rs.540 on ARN registration and Rs.270 on ARN renewal and EUIN registration or renewal. This means, from April 1, 2018, you will have to pay ARN registration fee of Rs.3,540 and ARN renewal fee of Rs.1,740.
