*Very Important Changes in Brokerage Processing (GST moving out of Base TER) w.e.f. 1 April 2026.*
🔹AMCs will revise brokerage structures by removing GST from the base brokerage rate (rates will now be "Exclusive of GST").
*Key Changes:*
1. Brokerage rates will be provided without GST from April 1, 2026.
2. RTA will calculate brokerage on the base rate and compute GST separately
3. This applies to old as well new assets from April 1, 2026 (All AUM)
4. Old brokerage rates will be reset to remove GST using a prescribed formula.
5. Distributors will be paid only the base brokerage (excluding GST).
6. GST amount will be shown separately in reports.
*Impact on Distributors:*
*For GST Registered Distributors:* (More or less no changes, Just receive GST Separately)
▪️Must remit GST to the Government.
▪️Must submit GST payment proof/invoice summary via the portal.
▪️GST amount will be released only after AMC confirmation.
*For Non-GST Registered Distributors:*
▪️Will receive only brokerage excluding GST.
▪️No GST component will be paid.
*Important Note:*
Earlier, non-GST registered distributors were effectively receiving brokerage inclusive of GST.
Under the new rule, they will not receive the GST portion, which will reduce their overall payout.
*In Simple Words:*
Till now, Non-GST registered distributors were indirectly benefiting from GST included in brokerage.
From April 1, 2026, GST will be separated and paid only to registered distributors after proof submission.
*This change may negatively impact Non-GST registered distributors' earnings.*
