An India GST clarification issued on October 26, 2026, allows brokerage fees paid by overseas clients through repatriable rupee accounts to qualify as exports of services and avoid goods and services tax, subject to conditions.

What the India GST clarification covers

The Central Board of Indirect Taxes and Customs said payments through repatriable rupee accounts, from which funds can be moved out of India, could qualify for the export treatment. India otherwise levies 18% GST on brokerage fees.

Jefferies said the clarification could reduce foreign portfolio investors’ tax burden. It added that brokers and depositories could benefit if trading volumes increase, though an increase is not assured.

Foreign selling and investor sentiment

Foreign investors had sold $32.66 billion of Indian shares in 2026 through October 28, exceeding the previous annual record of $18.91 billion in 2025. The Nifty 50 was down 13.6% for the year, while MSCI’s emerging markets index had risen 12.4%.

The National Securities Depository’s sector-wise investment data shows net foreign portfolio investment in Indian equities was negative $5.044 billion for October 1–15. That figure uses the end-of-period exchange rate.

Independent market analyst Ambareesh Baliga said the clarification was positive for sentiment but might not make much difference to foreign investors’ mood. He said a decision on capital gains tax could provide relief.

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