Yes, the expense ratio already includes GST. You do not need to pay GST separately on mutual fund investments.
Why is GST included in the expense ratio?
Asset Management Companies (AMCs) provide money management services, which fall under GST regulations. The AMC incorporates this GST into the expense ratio, so you see the final cost that includes all applicable taxes.
What does this mean for you?
- When you review a mutual fund's expense ratio, this percentage represents your total annual cost, including GST.
- You do not pay any GST on top of it.