April 1st Mutual Fund Brokerage Rules: How GST Changes Impact Distributors
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New Mutual Fund Brokerage Rules from April 1: GST Changes to Impact Distributors
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CNBC TV18•26-02-2026, 15:46
New Mutual Fund Brokerage Rules from April 1: GST Changes to Impact Distributors
•Mutual fund distributors face structural shift in brokerage payouts from April 1, 2026, as GST moves outside Total Expense Ratio (TER).
•KFin Technologies (KFintech) outlined the revised brokerage mechanism for AMCs and distributors.
•SEBI's December 2025 overhaul of TER framework unbundled statutory levies like GST on management fees, STT, and stamp duty.
•From April 1, 2026, AMCs will shift to GST-exclusive brokerage rates, meaning unregistered distributors will no longer receive the embedded 18% tax component.
•Unregistered distributors, especially those below the INR 2 million GST threshold, could see an income impact of roughly 15%, though market growth may offset this.
