GST on penal charges: penal charges by regulated entities are not subject to GST; sectoral exemptions and regularizations follow. Penal charges levied by Regulated Entities in compliance with RBI directions are treated as charges for breach of contract and not consideration; hence no GST is payable on such penal charges. RBI regulated Payment Aggregators that handle settlement into escrow qualify as 'acquiring bank' for the exemption on settlement of amounts up to two thousand rupees per card transaction, limited to settlement functions; Payment Gateways are excluded. Various historical GST liabilities on specified services by government research providers, skilling training partners, renting to composition taxpayers, electricity ancillary services, and cultural institutes are regularized on an 'as is where is' basis for identified intervening periods.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
GST on penal charges: penal charges by regulated entities are not subject to GST; sectoral exemptions and regularizations follow.
Penal charges levied by Regulated Entities in compliance with RBI directions are treated as charges for breach of contract and not consideration; hence no GST is payable on such penal charges. RBI regulated Payment Aggregators that handle settlement into escrow qualify as "acquiring bank" for the exemption on settlement of amounts up to two thousand rupees per card transaction, limited to settlement functions; Payment Gateways are excluded. Various historical GST liabilities on specified services by government research providers, skilling training partners, renting to composition taxpayers, electricity ancillary services, and cultural institutes are regularized on an "as is where is" basis for identified intervening periods.
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