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Taxation Central Ministry of Finance Central Goods and Services Tax Act, 2017

CBIC (GST) issues a circular regarding the clarification of GST applicability on certain services

28-Jan-2025 | Circular No. 245/02/2025-GST

CBIC (GST) has issued a circular regarding the clarification of GST applicability on certain services.

By virtue of clarification:

-It has been clarified that no GST will be levied on penal charges imposed by Regulated Entities on the instructions of RBI in cases of non-compliance with loan terms.

- It has been clarified that Payment Aggregators are exempt from GST for transactions up to Rs. 2000/- made through debit cards, credit cards, charge cards, or any payment card. However, this exemption does not apply to entities involved in Payment Gateway services, including the handling of money.

- It has been clarified that the payment of GST on the supply of research and development services by Government Entities against grants received from them is regularized for the period from 01.07.2017 to 09.10.2024, on an 'as is, where is' basis.

For more information, please refer to the specified document.

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