GST exemption for payment aggregators covers low-value card settlements; acquiring bank definition applies to such aggregators. Penal charges levied by banks and NBFCs under RBI directions replacing penal interest are charges for breach of loan terms and not subject to GST. RBI regulated Payment Aggregators that receive, pool and settle card payments from escrow accounts qualify as 'acquiring bank' for the low value card settlement exemption, limited to settlement functions and excluding payment gateway services. Several past periods' GST treatments are regularised on an 'as is where is' basis in line with GST Council recommendations, including R&D grants, NSDC training partner skilling services, incidental electricity service exemptions, reverse charge on certain rentals, and Goethe Institute services.
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 exemption for payment aggregators covers low-value card settlements; acquiring bank definition applies to such aggregators.
Penal charges levied by banks and NBFCs under RBI directions replacing penal interest are charges for breach of loan terms and not subject to GST. RBI regulated Payment Aggregators that receive, pool and settle card payments from escrow accounts qualify as "acquiring bank" for the low value card settlement exemption, limited to settlement functions and excluding payment gateway services. Several past periods' GST treatments are regularised on an "as is where is" basis in line with GST Council recommendations, including R&D grants, NSDC training partner skilling services, incidental electricity service exemptions, reverse charge on certain rentals, and Goethe Institute services.
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