Mutual fund industry body AMFI has sought safeguards under the new GST regime as they believe that MF units could become more expensive due to increase in cost or compliances.
AMFI (Association of Mutual Funds in India), along with PwC, made a representation to GST Commissioner Upendra Gupta last month and requested that securities should be excluded from the definition of goods or otherwise exempted from levy of GST.
Under the present VAT and service tax laws, transactions in securities are not taxed. If supply of securities is liable to new goods and services tax (GST) tax, the very existence of the MF sector would be jeopardised, it felt.
