Brokerage Fee
This is the fee charged by your stockbroker for executing the trade. Discount brokers typically charge a flat fee per order (e.g., ₹20) or a small percentage, whichever is lower.
0.03% or ₹20/order
STT (Securities Transaction Tax)
A direct tax levied by the government on the transaction value. It differs based on whether you hold the stock (Delivery) or sell it the same day (Intraday).
Delivery: 0.1% | Intraday: 0.025%
Exchange Charges
Charged by the stock exchange (NSE/BSE) for maintaining the trading infrastructure. It is usually a fraction of the total turnover.
NSE: 0.00325%
GST
Goods and Services Tax is applicable at 18% on the sum of Brokerage fees and Exchange transaction charges.
18% on (Brokerage + Txn Charges)
SEBI Turnover Fees
A small fee charged by the Securities and Exchange Board of India (SEBI) for regulatory oversight.
₹10 per Crore (0.0001%)
Stamp Duty
A state-government tax levied on the legal validity of the contract note. It is charged only on the buy side of the transaction.
0.003% on Buy Value
1. What is the difference between Delivery and Intraday brokerage?
In Delivery trading, you buy shares and hold them in your Demat account. STT is charged on both buy and sell sides (0.1%). In Intraday, you buy and sell shares on the same day. STT is charged only on the sell side (0.025%), making it cheaper for short-term traders.
2. How is GST calculated on stock trading?
GST is calculated at 18% on the total of (Brokerage + Exchange Transaction Charges + SEBI Fees). It is not calculated on the total trade value, which makes it a relatively smaller component of the total charges.
3. Why is Stamp Duty only on the buy side?
As per the recent amendments by the Government of India, Stamp Duty is levied only on the buyer of securities. If you buy shares, you pay stamp duty. If you sell them, you do not pay stamp duty, but you are liable for STT if applicable.