What the official summaries say
GIFT City's guides, "Doing Business in GIFT City" (2024) and "Doing Business at IFSC", state that:
- transactions executed on GIFT IFSC exchanges are exempt from securities transaction tax (STT) and commodities transaction tax (CTT);
- they are exempt from stamp duty; and
- no GST applies to transactions carried out on IFSC exchanges.
The IFSC guide lists these exemptions among the benefits for investors, next to the capital gains reliefs. The 2024 guide lists them as transaction-related exemptions available in GIFT IFSC generally. On both readings they reach non-resident investors trading on IFSC exchanges and IFSC units dealing there for their own account.
For an active trading strategy, that removes a cost charged on every onshore trade. The guides are summaries. The legal basis is in the statutes below.
Where the exemptions come from
- STT is levied under Chapter VII of the Finance (No. 2) Act, 2004. The exemption for IFSC exchange transactions sits in that Act as amended.
- CTT is levied under the Finance Act, 2013. The exemption for IFSC transactions sits in that Act as amended.
- Stamp duty on instruments is largely a State subject. For GIFT IFSC the relevant relief is Gujarat's.
The Finance Act, 2026 raised the STT rates on sale of options and futures in the Table to section 98 of the Finance (No. 2) Act, 2004. The amendment we have read changes rates for onshore trades and does not refer to IFSC exchanges. Confirm the current text of the exemption for the instrument you trade.
Stamp duty in Gujarat
GIFT City's 2024 guide describes the State exemption as covering:
- all activities related to setting up units in GIFT IFSC; and
- acquisition of any movable property (including aircraft) or immovable property,
for a period of ten years beginning on 4 August 2020. The guide notes that the exemption may not be available on the sale of an aircraft.
Because the exemption is time-limited, transactions with long lead times, such as property acquisitions or fleet transfers, should be planned with the expiry in mind. For the State framework, see Gujarat incentives and stamp duty.
Income tax on the trade is separate
An exemption from transaction taxes says nothing about income tax on the gain. Under the Income-tax Act, 2025, a non-resident's transfer on a recognised stock exchange in an IFSC of certain bonds, Global Depository Receipts, rupee-denominated bonds, derivatives or notified securities, for foreign-currency consideration, is outside the capital gains charge (section 70(1)(r)). Other instruments and investors are taxed under the ordinary rules. See Tax for non-resident investors.
Before you rely on this
The statutory provisions behind the STT and CTT exemptions are in the Finance (No. 2) Act, 2004 and the Finance Act, 2013, as amended. Confirm the current text, and the State stamp-duty notification, for your transaction. In particular check:
- that the trade is on a recognised IFSC exchange and settled in foreign currency, if the exemption requires it;
- that the instrument is within the exemption, not merely listed in the IFSC; and
- for stamp duty, that the instrument relates to the IFSC unit's activities and falls within the ten-year period.