GST is applicable on brokerage and transaction charges in trading. While securities themselves are not under GST, the services around them are. Brokers charge 18% GST on their brokerage fees. For example, if brokerage is ₹20 per trade, ₹3.60 will be added as GST. Transaction charges, SEBI fees, and exchange fees also attract GST, which increases the effective trading cost. F&O traders may be required to register under GST if their income exceeds ₹20 lakh (or ₹10 lakh in some states). However, since securities are excluded from GST’s ambit, most traders don’t need to collect or remit GST on profits. It’s essential to check monthly contract notes for accuracy. High-frequency traders should include brokerage and GST in their cost structure while calculating net profits. Understanding this breakup helps identify areas to reduce cost — like using discount brokers. GST on brokerage can also be claimed as business expense under income tax returns if the trader is under business income classification.